What this ETF is trying to do

The Direxion Daily HOOD Bull 2X ETF (HODU) is a leveraged ETF. This means it is designed to aim for twice the daily performance of its target. Based on the fund's top holdings, it focuses on Robinhood Markets Inc Class A, which makes up about 9.01% of the portfolio.

What the numbers show

As of October 6, 2026, the current price of one share is $13.15.

When looking at how the fund has performed this year, it is important to look at two different numbers:

• Year-to-date (YTD) price return: This is -41.92%. This number only measures how much the share price itself has changed.

• Year-to-date (YTD) total return: This is -40.96%. Total return is a different measure because it includes both the change in share price and any cash distributions paid to investors.

Income and distribution explanation

This ETF provides some cash to investors through distributions. The distribution yield is approximately 1.77%. Over the last 12 months, the fund made four payments, totaling about $0.23 per share. These payments usually happen every three months (quarterly).

It is important for beginners to know that a distribution yield is not the same as total return. A high yield does not mean an investor has earned that percentage in total profit.

NAV erosion explanation

"NAV erosion" refers to a decline in the actual value of the fund's underlying assets. While some investors watch this closely, HODU does not currently have a severe erosion-risk flag. The specific erosion score is withheld because there is not enough verified price history available to provide a score.

Pros

• It provides 2X leveraged exposure to Robinhood Markets Inc Class A.

• It has provided cash distributions to shareholders.

Cons

• The fund has experienced a significant share-price decline of approximately 41.92% so far this year.

• Because it is a leveraged ETF, the price can move much more drastically than the underlying stock.

Beginner takeaway

When studying HODU, remember that "price return" and "total return" tell different stories. Price return only tracks the cost of the share, while total return includes any cash payments you received. Also, because this is a leveraged fund, it is built to move with much higher intensity than a standard stock.