Understanding the Direxion Daily PANW Bear 1X Shares (PALD)

What this ETF is trying to do

The Direxion Daily PANW Bear 1X Shares (ticker: PALD) is an inverse ETF. This means it is designed to move in the opposite direction of a specific target. Because it is an "inverse" fund, it seeks to profit when the underlying asset falls in value.

What the numbers show

The data shows a significant decline in the share price of PALD.

• Year-to-Date (YTD) Performance: The YTD price return is approximately -61.94%. The YTD total return is approximately -61.46%.

• One-Year Performance: The one-year price return is approximately -58.14%. The one-year total return is approximately -56.89%.

• Price Comparison: The current price is $9.06. An estimated price from roughly one year ago was approximately $21.65.

It is important to note the difference between these numbers. The price return only tracks the change in the share price itself. The total return includes the impact of distributions.

Income and distribution explanation

PALD has a distribution yield of approximately 5.86%. Over the last 12 months, it has made 3 distributions totaling approximately $0.53 per share. The distribution frequency is described as "irregular / less frequent," with the most recent payments occurring on Tuesdays.

While a distribution yield provides cash, it is not the same as total return. In this case, even with distributions, the total return remains deeply negative.

NAV erosion explanation

The fund has a severe erosion-risk flag. This means StockValueFinder's rules detected substantial price deterioration and a low erosion score of 10, which is labeled as "severe price erosion."

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 fallen significantly, we cannot use this price-based evidence to prove exactly what happened to the Net Asset Value (NAV).

Pros

• The ETF provides a distribution yield of approximately 5.86%.

Cons

• Significant Price Decline: The fund has experienced a large share-price decline over the last year.

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

• Low Income Rating: The fund has an income rating grade of "F."

Beginner takeaway

PALD is an inverse ETF, which means it is designed to go up when its target goes down. However, the recent data shows a very large decline in share price and total return. While it does pay distributions, the high rate of price decline is a major factor to understand when looking at the overall performance.