Share-split context: This ETF has both forward- and reverse-split history. The most recent recorded event was on Aug 28, 2023 with coefficient 5. Current price-return figures are already split-adjusted. Forward splits receive no automatic performance penalty; reverse-split history remains a separate structural warning.

What this ETF is trying to do

The MEXX ETF, known as the Direxion Daily MSCI Mexico Bull 3X Shares, is a leveraged ETF. This means it is designed to aim for three times the daily performance of its target index. It focuses on the Mexican market. Because it is leveraged, its price movements can be much larger than the regular market.

What the numbers show

The current price of MEXX is $23.70. When looking at how this ETF has performed, it is important to look at two different numbers: the price return and the total return.

• Price Return: This only tracks how much the share price itself has changed.

• Total Return: This includes both the price changes and any cash distributions (dividends) paid out.

Here is how the performance looks based on supplied data:

• Year-to-Date (YTD): The price return is approximately -5.16%, while the total return is approximately -4.13%.

• One Year: The price return was about 15.89%, and the total return was about 17.84%.

• Three Years: The price return was about 25.73%, and the total return was about 36.04%.

This ETF has a history of "mixed" splits. This means it has had both forward splits (where one old share becomes multiple new shares) and reverse splits (where multiple old shares are combined into fewer new shares). Because of this history, we use split-adjusted returns to see the true performance.

Income and distribution explanation

MEXX pays out cash distributions to investors. The distribution yield is currently about 1.93%. This number describes the cash paid out relative to the ETF's price. Over the last 12 months, there were 4 distributions, which usually happen every quarter.

It is important to remember that a distribution yield is not the same as total return. While distributions provide cash, they do not guarantee that your original investment will stay the same value.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF decreases. Some investors worry about this if they see a falling share price or high distributions.

For MEXX, the erosion-risk score is 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag.

Pros

• Historical Growth: The three-year total return has been approximately 36.04%.

• Income: The ETF provides regular quarterly distributions.

Cons

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

• Recent Performance: The year-to-date price return has been negative.

Beginner takeaway

MEXX is a specialized, leveraged tool for those looking at the Mexican market. When studying this ETF, always look at the total return to see how much you actually earned including distributions. Also, remember that because this is a leveraged fund, its price can move up or down very quickly.