Understanding the Direxion Daily FTSE Europe Bull 3X Shares (EURL)

What this ETF is trying to do

The EURL ETF is a leveraged fund. This means it is designed to move in a different way than standard funds. It focuses on European markets using a "3X" strategy, which aims to amplify the daily movements of its target index.

What the numbers show

When looking at EURL, it is important to understand two different types of returns: price return (how much the share price changed) and total return (which includes both price changes and cash distributions).

Based on the data:

• Year-to-Date (YTD): The price return is approximately 1.33%, while the total return is approximately 2.98%.

• One Year: The price return was approximately 9.92%, while the total return was approximately 12.10%.

• Three Years: The price return was approximately 138.82%, while the total return was approximately 156.28%.

To visualize the price change, if you had purchased a share at its estimated price from roughly one year ago ($38.00), the current price is $41.77.

Income and distribution explanation

This ETF pays out cash to investors, known as distributions. The current distribution yield is approximately 1.99%. Over the last 12 months, there were 4 distributions, which usually happen on a quarterly basis. The most recent payments occurred on Tuesdays.

It is important to remember that a distribution yield tells you how much cash was paid out relative to the price, but it is not the same as your total return.

NAV erosion explanation

"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases over time. StockValueFinder uses an erosion-risk score to measure this risk. For EURL, 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 fund has shown significant three-year total returns.

• It currently shows no detected price erosion according to the erosion-risk score.

Cons

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

• The fund's holdings are very concentrated.

Top Holdings

The fund's exposure is focused on:

• Vanguard FTSE Europe ETF (VGK): 14.18%

*(Note: Holdings can change over time.)*

Beginner takeaway

EURL is a leveraged fund that seeks to amplify European market movements. When studying this ETF, always look at the total return rather than just the price return to see the full picture of how the fund performed including its cash payments. Because it is leveraged, it behaves differently than a typical non-leveraged fund.