Share-split context: This ETF has both forward- and reverse-split history. The most recent recorded event was on Mar 24, 2016 with coefficient 0.25. Current price-return figures are already split-adjusted. Forward splits receive no automatic performance penalty; reverse-split history remains a separate structural warning.

Understanding the DIREXION Daily MSCI India Bull 2X Shares ETF (INDL)

The DIREXION Daily MSCI India Bull 2X Shares (ticker: INDL) is a leveraged ETF. This means it is designed to provide twice the daily performance of its target index. Because it uses leverage, it can experience much larger price swings than a standard fund.

What this ETF is trying to do

This ETF seeks to track the performance of an index related to Indian stocks, but it uses a "2X" strategy. This means if the underlying index goes up by 1%, the ETF aims to go up by 2%. However, if the index goes down by 1%, the ETF aims to go down by 2%. This magnifying effect works in both directions.

What the numbers show

The data shows that this ETF has experienced significant share-price declines over various timeframes:

• Year-to-Date (YTD): The price return is approximately -32.18%.

• One Year: The price return is approximately -30.62%.

• Three Years: The price return is approximately -20.61%.

It is important to distinguish between price return (the change in the share price) and total return (which includes distributions). For example, the one-year total return is approximately -29.87%, which is slightly different from the price return of -30.62%.

This ETF also has a history of share splits. It has had "mixed" split history, meaning it has undergone both forward splits (where one old share becomes multiple new shares) and reverse splits (where multiple old shares are combined into fewer new shares).

Income and distribution explanation

The ETF has a distribution yield of approximately 1.33%. Over the last 12 months, it has made 4 distributions, which usually happen on a quarterly basis. While these distributions provide some cash, they are not a guarantee of profit, especially when the share price is falling.

NAV erosion explanation

This ETF has a severe erosion-risk flag active. The data shows an erosion score of 30, which is labeled as "Significant price erosion." This means the market price of the shares has dropped significantly over time.

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion. While the market price has clearly declined, we cannot use this specific data to prove whether the Net Asset Value (NAV) itself has eroded.

Pros

• Provides leveraged exposure to the Indian market for those seeking amplified daily movements.

• Offers a small amount of cash distributions (yield).

Cons

• High Risk: As a leveraged ETF, it is subject to significant price volatility.

• Price Decline: The fund has shown substantial share-price declines over the last year and three years.

• Erosion Risk: The fund carries a severe erosion-risk flag due to its price trends.

Beginner takeaway

INDL is a complex, leveraged tool designed for specific daily movements in the Indian market. Because it seeks to double the index's performance, it can lose value very quickly. Investors should be aware that a high distribution yield does not protect against the significant share-price declines seen in this fund's history.