ETF Education Report: Direxion Daily LLY Bull 2X Shares (ELIL)

What this ETF is trying to do

The Direxion Daily LLY Bull 2X Shares (ELIL) is an ETF that uses leverage. This means it is designed to move in a different way than the standard market. It is also an ETF that focuses on a specific area, as it holds Eli Lilly and Co (LLY) in its portfolio.

What the numbers show

The current price of ELIL is $27.53. To understand how the price has changed, we can look at the estimated price from roughly one year ago, which was about $16.11.

When looking at performance, it is important to know the difference between "price return" and "total return":

• Price Return: This only measures how much the share price moved. The one-year price return was approximately 70.90%. However, the year-to-date (YTD) price return is currently -2.64%.

• Total Return: This includes both the share price movement and any cash distributions paid out. The one-year total return was approximately 93.15%. The YTD total return is currently -1.60%.

Income and distribution explanation

This ETF has a distribution yield of approximately 11.81%. This number describes the cash distributions relative to the ETF price. Over the last 12 months, there were 6 payouts. These distributions usually happen on a quarterly basis, though they often fall on a Tuesday.

It is important to remember that a high distribution yield does not mean an investor earned that full percentage as their total return. Total return is the most complete way to see how the investment performed overall.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF decreases significantly. StockValueFinder uses an "erosion-risk score" to measure this risk. For ELIL, the erosion score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• The one-year total return has been quite high at approximately 93.15%.

• The ETF provides a distribution yield of approximately 11.81%.

Cons

• The year-to-date price return is currently negative at -2.64%.

• This is a leveraged ETF, which means it can be more volatile than standard investments.

Beginner takeaway

When looking at ELIL, it is important to distinguish between the share price and the total return. While the share price might go up or down, the total return tells you how much you actually gained or lost including the cash paid out to you. Also, remember that a high distribution yield is not the same thing as total return.