ETF Education Report: DIREXION DAILY NFLX BEAR 1X SHARES (NFXS)

What this ETF is trying to do

The NFXS ETF is an "inverse" fund. This means it is designed to move in the opposite direction of a specific stock. While most investors want stocks to go up, an inverse ETF is built to gain value when the underlying stock goes down.

What the numbers show

The current price of NFXS is $21.93. We can look at how the share price has changed over different periods:

• Year-to-Date (YTD) Price Return: The share price has increased by approximately 26.97% since the start of the year.

• One-Year Price Return: Over the last year, the share price increased by approximately 53.69%.

• Estimated Price Comparison: The current price of $21.93 is higher than the estimated price from roughly one year ago, which was approximately $14.27.

It is important to know the difference between price return and total return. Price return only tracks how much the share price itself changed. Total return includes both the price change and any cash distributions (dividends) paid out to investors. For NFXS, the one-year total return was approximately 57.92%, which is higher than the price return alone.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. NFXS has a distribution yield of approximately 2.38%. This means the cash paid out is about 2.38% of the ETF's price. Over the last 12 months, there were 4 distributions, which usually happen every quarter.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of an ETF's underlying assets decreases over time. StockValueFinder uses an "erosion score" to measure this risk. For NFXS, the erosion score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• The fund has shown significant positive total returns over the last year.

• The erosion-risk measurement is rated as "good."

Cons

• This is an inverse ETF, which means it behaves differently than standard stocks.

• The income rating grade is a "C," suggesting the distribution level is not exceptionally high.

Beginner takeaway

NFXS is an inverse ETF, meaning it is designed to profit when its target stock falls. When looking at this fund, remember that the price return and total return are different numbers. Always look at the total return to see the full picture of how much value was created, including cash distributions.