What this ETF is trying to do

The DIREXION Daily Consumer Discretionary Bull 3X Shares (ticker: WANT) is a leveraged ETF. This means it is designed to amplify the movements of the consumer discretionary sector. It is not a single-stock ETF, but it uses financial tools to try to provide three times the daily performance of its target index.

What the numbers show

When looking at this ETF, it is important to understand two different types of returns: price return (the change in the share price) and total return (which includes the impact of distributions).

• Year-to-Date (YTD): The price return is approximately -30.79%, while the total return is approximately -30.45%.

• One-Year: The price return was approximately -35.47%, and the total return was approximately -35.11%.

• Three-Year: The price return was approximately 11.56%, and the total return was approximately 14.20%.

• Five-Year: The five-year total return was approximately -50.02%.

To visualize the price change, an investor's share price was estimated to be roughly $53.85 one year ago, compared to the current price of $34.75.

Top Holdings:

The fund's holdings can change over time. Based on the most recent partial list, the top holdings include:

• IXY SWAP ASSET LEG (68.49%)

• GOLDMAN FINL SQ TRSRY INST 506 (6.18%)

• AMAZON.COM INC (4.91%)

• TESLA INC (3.78%)

• DREYFUS GOVT CASH MAN INS (3.42%)

Income and distribution explanation

This ETF pays out distributions, which are cash payments to shareholders. The distribution yield is approximately 0.64%. Over the last 12 months, there were 4 payouts, which usually happen on a quarterly basis. It is important to remember that a distribution yield is not the same as a total return.

NAV erosion explanation

This ETF has a severe erosion-risk flag. This means that StockValueFinder's screening rules detected significant price deterioration. The fund has an erosion-risk score of 30, which is labeled as "Significant price erosion."

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the fund's assets). While a falling market price does not always prove NAV erosion, the high erosion-risk score and the significant decline in share price are important measurements for investors to note.

Pros

• The fund provides exposure to major companies like Amazon and Tesla through its leveraged structure.

• It has provided a positive total return over a three-year period of approximately 14.20%.

Cons

• The fund is leveraged, which can lead to large price swings.

• It shows significant price deterioration and carries a severe erosion-risk flag.

• The five-year total return is down approximately 50.02%.

Beginner takeaway

This ETF is a highly volatile, leveraged product. While it can provide amplified returns, the data shows significant share-price declines over the last year and a severe erosion-risk warning. Always remember that high distributions do not guarantee that your original investment will stay stable.