FAS: DIREXION DAILY FINANCIAL BULL 3X SHARES
Share-split context: This ETF has both forward- and reverse-split history. The most recent recorded event was on May 20, 2015 with coefficient 4. Current price-return figures are already split-adjusted. Forward splits receive no automatic performance penalty; reverse-split history remains a separate structural warning.
ETF Education Report: DIREXION DAILY FINANCIAL BULL 3X SHARES (FAS)
What this ETF is trying to do
The DIREXION DAILY FINANCIAL BULL 3X SHARES (FAS) is a leveraged ETF. This means it is designed to amplify the movements of the financial sector. It is important to note that this is a leveraged product, which behaves differently than standard ETFs.
What the numbers show
The current price of FAS is $142.84. Because this ETF has a history of both forward and reverse splits, we look at split-adjusted returns to understand its performance.
• Year-to-Date (YTD): The price return is approximately -15.14%. The total return, which includes distributions, is approximately -13.85%.
• One-Year: The price return is approximately -19.15%. The total return is approximately -11.52%.
• Three-Year: The price return is approximately 147.34%. The total return is approximately 176.86%.
Please note that "price return" only tracks the change in the share price, while "total return" includes the impact of distributions.
Income and distribution explanation
FAS has a distribution yield of approximately 10.23%. Over the last 12 months, it has made 5 distributions. While this yield is high, it is important to remember that a high distribution yield does not guarantee an investor will earn that same percentage as a total return. Distributions provide cash, but they are separate from the movement of the share price.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the fund's assets). While a falling share price does not always mean the NAV has declined, StockValueFinder uses an "erosion-risk score" to measure this risk. FAS has an erosion score of 55, which is labeled as "moderate price erosion." This indicates a moderate level of risk regarding price deterioration.
Top Holdings
The following are the top holdings in this portfolio (note that this list is partial):
• IXM SWAP ASSET LEG: 69.45%
• DREYFUS GOVT CASH MAN INS: 5.73%
• BERKSHIRE HATHAWAY INC CLASS B: 2.70%
• GOLDMAN FINL SQ TRSRY INST 506: 2.59%
• JPMORGAN CHASE & CO: 2.56%
• VISA INC CLASS A: 1.79%
• MASTERCARD INC CLASS A: 1.30%
• BANK OF AMERICA CORP: 1.03%
Pros
• The ETF has shown very high total returns over a three-year period.
• It offers a significant distribution yield for those seeking cash income.
Cons
• The ETF has experienced negative price returns and total returns over the last year and year-to-date.
• It carries a moderate erosion-risk score.
Beginner takeaway
FAS is a leveraged ETF with high volatility. While it offers high distributions and has had strong long-term growth, it also shows recent price declines. Investors should remember that high yields can exist even when the share price is falling, and leveraged funds carry unique risks.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | IXM SWAP ASSET LEG | n/a | 69.45% |
| 2 | DREYFUS GOVT CASH MAN INS | n/a | 5.73% |
| 3 | BERKSHIRE HATHAWAY INC CLASS B | BRK-B | 2.70% |
| 4 | GOLDMAN FINL SQ TRSRY INST 506 | n/a | 2.59% |
| 5 | JPMORGAN CHASE & CO | JPM | 2.56% |
| 6 | VISA INC CLASS A | V | 1.79% |
| 7 | MASTERCARD INC CLASS A | MA | 1.30% |
| 8 | BANK OF AMERICA CORP | BAC | 1.03% |
| 9 | DREYFUS TRSRY SECURITIES CASH MGMT | n/a | 1.03% |
| 10 | THE GOLDMAN SACHS GROUP INC | GS | 0.76% |