What this ETF is trying to do

The DIREXION DAILY MSFT BULL 2X SHARES (MSFU) is an ETF designed to provide leveraged exposure. This means it aims to track the performance of Microsoft Corp (MSFT) with a multiplier. Because this is a leveraged ETF, it is built to move in a specific direction relative to its underlying asset.

What the numbers show

The data shows different results depending on whether you look at just the share price or the total return.

Price Return (Share Price Only):

The price return measures only the change in the ETF's market price.

• Year-to-Date (YTD): The price has declined by approximately 3.93%.

• One Year: The one-year price return is approximately -20.38%.

• Three Year: The three-year price return is approximately 26.29%.

Total Return (Price + Distributions):

Total return includes the impact of cash distributions.

• Year-to-Date (YTD): The YTD total return is approximately -1.99%.

• One Year: The one-year total return is approximately -13.67%.

• Three Year: The three-year total return is approximately 49.30%.

An estimated price from roughly one year ago was $50.01, compared to the current price of $39.82.

Income and distribution explanation

MSFU provides cash distributions to investors. The distribution yield is approximately 7.90%. This number describes the cash paid out relative to the current ETF price. It is important to remember that a high distribution yield is not the same as total return.

The ETF usually pays out on a quarterly basis, though it has had 5 payouts in the last 12 months. Most recent payments have occurred on Tuesdays.

NAV erosion explanation

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.

Regarding price movement, the fund has an erosion-risk score of 55, which is labeled as "Moderate price erosion." This is a measurement of price-based risk and does not necessarily prove that the Net Asset Value (NAV) has collapsed.

Pros

• Higher Total Returns: Over a three-year period, the total return (49.30%) was significantly higher than the simple price return (26.29%), showing the impact of distributions.

• Leveraged Potential: The fund is designed for those seeking amplified movement based on Microsoft's performance.

Cons

• Price Decline: The ETF has experienced a significant share-price decline over the last year of approximately 20.38%.

• Moderate Erosion Risk: The fund shows a moderate level of price erosion.

Beginner takeaway

MSFU is a leveraged ETF that tracks Microsoft. While it offers a distribution yield of approximately 7.90%, investors should distinguish between the share price and total return. The share price has declined over the past year, even though total returns account for cash distributions. Because this is a leveraged product, it carries different risks than a standard ETF.