Understanding the Direxion Daily XOM Bull 2X Shares (XOMX)

What this ETF is trying to do

The XOMX ETF is a specialized tool designed for investors. It is a leveraged ETF, which means it aims to amplify the movements of its underlying asset. According to the data, this fund focuses on ExxonMobil Holdings Corp (XOM).

What the numbers show

The current price of XOMX is $48.62. To understand how the price has changed, we can look at its performance over different time periods:

• Year-to-Date (YTD): The price return is approximately 67.81%. When including distributions, the YTD total return is approximately 70.36%.

• One Year: The price return is approximately 82.96%. When including distributions, the one-year total return is approximately 86.96%.

It is important to know the difference between these two numbers. The price return only tracks how much the share price itself went up or down. The total return is a more complete measure because it includes the value of any cash distributions paid out to investors.

For context, the estimated price from roughly one year ago was $26.58. If you had invested $10,000 into the share price alone one year ago, that investment would have grown based on the 82.96% price return.

Income and distribution explanation

This ETF pays out cash to investors, which is called a distribution. The distribution yield is approximately 1.74%. Over the last 12 months, there were 4 distributions, which usually happen on a quarterly basis. The most recent distributions were paid on Tuesdays.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF steadily declines. Some investors worry about this because if the principal (the original money put in) shrinks, it can be harder to earn returns. However, for XOMX, 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 price returns and total returns over the last year.

• It provides a way to gain exposure to ExxonMobil Holdings Corp through a single ticker.

Cons

• This is a leveraged ETF, which means it can experience much larger price swings than standard funds.

• Total return data for the three-year period was not supplied.

Beginner takeaway

XOMX is a leveraged ETF that tracks the performance of ExxonMobil. While it has seen high price and total returns recently, leveraged funds move much faster than regular funds. Always remember that price returns (the change in share price) and total returns (price change plus cash paid out) are different measurements.