RETL: DIREXION DAILY RETAIL BULL 3X SHARES
Share-split context: This ETF has both forward- and reverse-split history. The most recent recorded event was on Oct 25, 2021 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.
ETF Education Report: DIREXION Daily Retail Bull 3X Shares (RETL)
What this ETF is trying to do
The RETL ETF is a leveraged fund. This means it uses financial tools to try to multiply the daily performance of the retail sector. It is designed to provide three times the daily movement of its target index. Because it is leveraged, its price can move much faster than a standard fund.
What the numbers show
The current price of RETL is $7.29. When looking at how this fund has performed, it is important to distinguish between "price return" and "total return."
• Price Return: This measures only the change in the share price.
• Total Return: This includes both the share price changes and any cash distributions (dividends) paid out.
For the year-to-date (YTD) period, the price return is approximately -20.93%, while the total return is approximately -20.22%. Over the last year, the price return was approximately -21.87%, and the total return was approximately -21.16%.
Looking further back, the three-year price return was approximately 39.39%, and the three-year total return was approximately 43.82%. However, the five-year total return is approximately -80.21%.
This ETF has a "mixed" split history, meaning it has had both forward and reverse splits. In a forward split, one old share becomes multiple new shares, which lowers the price per share but keeps your ownership the same. In a reverse split, multiple shares are combined into fewer shares, which raises the price per share mechanically.
Income and distribution explanation
RETL has a distribution yield of approximately 0.95%. This represents the cash distributed relative to the ETF price. Over the last 12 months, there were 3 distributions. These payments are described as "irregular" or "less frequent." It is important to remember that a distribution yield is not the same as total return.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the fund's underlying assets). While a falling share price is a "share-price decline," it does not always mean the NAV has dropped.
StockValueFinder uses an "erosion-risk score" to measure this risk. RETL has an erosion score of 55, which is labeled as "moderate price erosion." This is a measurement of risk rather than proof that the value has been destroyed.
Pros
• The fund offers a way to gain high exposure to the retail sector through leverage.
• It has shown a positive total return over a three-year period.
Cons
• The fund has experienced significant price declines in the short term (YTD and one-year).
• The five-year total return is significantly negative.
• It has a moderate erosion-risk score.
Beginner takeaway
RETL is a complex, leveraged ETF. Because it seeks to multiply daily returns, its price can be very volatile. Investors should understand the difference between share-price movement and total return, and they should be aware that high volatility can lead to significant price declines over time.
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Top Holdings (Partial List)
• SPSIRE SWAP ASSET LEG: 69.84%
• GOLDMAN FINL SQ TRSRY INST 506: 3.27%
• GOLDMAN SACHS FIN GOV 465 INSTITUT: 2.78%
• DREYFUS GOVT CASH MAN INS: 2.43%
• MARINEMAX INC: 0.53%
• ABERCROMBIE & FITCH CO CLASS A: 0.52%
• CARMAX INC: 0.41%
• GROCERY OUTLET HOLDING CORP: 0.41%
• BEST BUY CO INC: 0.40%
• FIVE BELOW INC: 0.40%
*Holdings are subject to change over time.*
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | SPSIRE SWAP ASSET LEG | n/a | 69.84% |
| 2 | GOLDMAN FINL SQ TRSRY INST 506 | n/a | 3.27% |
| 3 | GOLDMAN SACHS FIN GOV 465 INSTITUT | n/a | 2.78% |
| 4 | DREYFUS GOVT CASH MAN INS | n/a | 2.43% |
| 5 | MARINEMAX INC | HZO | 0.53% |
| 6 | ABERCROMBIE & FITCH CO CLASS A | ANF | 0.52% |
| 7 | CARMAX INC | KMX | 0.41% |
| 8 | GROCERY OUTLET HOLDING CORP | GO | 0.41% |
| 9 | BEST BUY CO INC | BBY | 0.40% |
| 10 | FIVE BELOW INC | FIVE | 0.40% |