SPXU

Investors can purchase shares of SPXU through a brokerage account, similar to other stocks and ETFs. It is traded on the New York Stock Exchange (NYSE) under the ticker symbol "SPXU."

Risks associated with SPXU include leverage risk, market risk, and tracking error. The use of leverage can amplify both gains and losses, leading to increased volatility. Daily rebalancing and compounding effects can result in performance deviations from the intended -3x return over longer periods.

Factors affecting SPXU’s performance include market conditions, changes in the S&P 500 Index, and the impact of leverage and daily rebalancing. Volatility and compounding effects can lead to deviations from the intended -3x return over time.

SPXU specifically targets three times the inverse daily return of the S&P 500 Index. Other inverse ETFs may focus on different indices or offer varying levels of inverse exposure, such as 1x or 2x, and may use different strategies or underlying assets.

Key performance metrics for SPXU include its net asset value (NAV), expense ratio, total return, and tracking error. NAV represents the per-share value of the ETF, the expense ratio indicates the annual cost of managing the fund, total return measures overall performance including dividends, and tracking error shows how closely SPXU tracks its -3x performance objective.

As of the latest update, SPXU has an expense ratio of approximately 0.96%. This fee covers the costs associated with managing the fund, including the costs of leveraging and maintaining the inverse exposure.

SPXU seeks to provide three times the inverse of the daily return of the S&P 500 Index. If the S&P 500 Index falls by 1% in a day, SPXU aims to increase by 3%. Conversely, if the S&P 500 Index rises, SPXU aims to decrease by three times that amount. Due to daily rebalancing and compounding effects, the long-term performance may deviate from -3x the cumulative return of the S&P 500 Index.

SPXU is managed by Direxion. The fund uses leverage and financial derivatives, such as futures contracts and swaps, to achieve its goal of providing three times the inverse of the daily return of the S&P 500 Index. The ETF is rebalanced daily to maintain the -3x leverage ratio.

Similar ETFs to SPXU include ProShares UltraShort S&P 500 ETF (SDS), which aims to provide twice (2x) the inverse daily return of the S&P 500 Index, and Direxion Daily S&P 500 Bear 1x Shares (SPDN), which seeks to provide one times (-1x) the inverse daily performance of the S&P 500 Index.

SPXU distributes dividends on a quarterly basis. These dividends come from the income generated by the underlying securities in the fund's portfolio, adjusted for the ETF’s leveraged and inverse position.