Direxion Daily Real Estate Bear 3X Shares ETF - Revision history

>Dk0709 at 15:23, 23 August 2023

2023-08-23T15:23:54Z

← Older revision		Revision as of 16:23, 23 August 2023
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	Other real estate valuation benchmarks include Housing Price Index and Home Price Index by CoreLogic.		Other real estate valuation benchmarks include Housing Price Index and Home Price Index by CoreLogic.

			== Performance ==
			With daily rebalancing nature of DRV makes itself very risky and volatile security, as it maximises exposure to a certain index to deliver the desired outcome.

			Between 21st Feb and 20th Mar, DRV had over 175% upside with the COVID lockdown and crash across most assets. Also between August and October in 2022, with surging mortgage rates topping over 7% in fixed 30 year. Real Estate Select Index struggled and thus DRV had an upside of 125%. Timing the entering and exiting positions are crucial when owning leveraged ETFs and therefore they are mainly utilised by traders.

	==Risk assessment==		==Risk assessment==

>Dk0709 at 14:37, 22 August 2023

2023-08-22T14:37:39Z

← Older revision		Revision as of 15:37, 22 August 2023
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	S&P Case Shiller Index indicates the benchmark of mean single family home prices in the United States. The graph displays upward trends during quantitative easing phase as printing money leading to currency devaluation, and liquidity gets injected into the real estate market in order for investors to preserve the wealth.

	This index tracks the purchase prices and resale prices of homes with two month lagging time.		S&P Case Shiller Index indicates the benchmark of mean single family home prices in the United States. This index was devleoped in the 80s by Allan Weiss, Karl Case and Robert Shiller to be utilised as a barometer of the US residential market.<ref>https://www.investopedia.com/terms/s/sp_case_shiller_us_nhpi.asp</ref>

			The graph displays upward trends during quantitative easing phase as printing money leading to currency devaluation, and liquidity gets injected into the real estate market in order for investors to preserve the wealth. This index tracks the purchase prices and resale prices of homes with two month lagging time. It is also calculated using a 3 month average which produces the lagging effect.

			Other real estate valuation benchmarks include Housing Price Index and Home Price Index by CoreLogic.

	==Risk assessment==		==Risk assessment==

>Dk0709 at 14:31, 22 August 2023

2023-08-22T14:31:39Z

← Older revision		Revision as of 15:31, 22 August 2023
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	\|ratio=Expense ratio: 1.08%		\|ratio=Expense ratio: 1.08%
	(as of 16/08/2022)}}		(as of 16/08/2022)}}
	DRV, Direxion Daily Real Estate Bear 3X Shares seek daily investment results, before fees and expenses, of 300%, or 300% of the inverse (or opposite), of the performance of the Real Estate Select Sector Index (IXRETR).[[File:2023-07-20 152553.png\|thumb\|<ref>https://www.direxion.com/product/daily-20-year-treasury-bull-bear-3x-etfs</ref>~~\|none~~]]		DRV, Direxion Daily Real Estate Bear 3X Shares seek daily investment results, before fees and expenses, of 300%, or 300% of the inverse (or opposite), of the performance of the Real Estate Select Sector Index (IXRETR).[[File:2023-07-20 152553.png\|thumb\|<ref>https://www.direxion.com/product/daily-20-year-treasury-bull-bear-3x-etfs</ref>]]
	== The Idea ==		== The Idea ==
	Investment thesis of this product is betting against the real estate market, especially REITs (real estate investment trusts), companies with ownership of incoming producing real estate.		Investment thesis of this product is betting against the real estate market, especially REITs (real estate investment trusts), companies with ownership of incoming producing real estate.

>Dk0709 at 14:31, 22 August 2023

2023-08-22T14:31:17Z

← Older revision		Revision as of 15:31, 22 August 2023
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	~~[[File:2023-07-20 152553.png\|thumb\|<ref>https://www.direxion.com/product/daily-20-year-treasury-bull-bear-3x-etfs</ref>\|none]]~~
	== Overview ==		== Overview ==
	{{Infobox company		{{Infobox company
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	\|ratio=Expense ratio: 1.08%		\|ratio=Expense ratio: 1.08%
	(as of 16/08/2022)}}		(as of 16/08/2022)}}
	DRV, Direxion Daily Real Estate Bear 3X Shares seek daily investment results, before fees and expenses, of 300%, or 300% of the inverse (or opposite), of the performance of the Real Estate Select Sector Index (IXRETR).		DRV, Direxion Daily Real Estate Bear 3X Shares seek daily investment results, before fees and expenses, of 300%, or 300% of the inverse (or opposite), of the performance of the Real Estate Select Sector Index (IXRETR).[[File:2023-07-20 152553.png\|thumb\|<ref>https://www.direxion.com/product/daily-20-year-treasury-bull-bear-3x-etfs</ref>\|none]]
	== The Idea ==		== The Idea ==
	Investment thesis of this product is betting against the real estate market, especially REITs (real estate investment trusts), companies with ownership of incoming producing real estate.		Investment thesis of this product is betting against the real estate market, especially REITs (real estate investment trusts), companies with ownership of incoming producing real estate.

>Dk0709 at 14:30, 22 August 2023

2023-08-22T14:30:47Z

← Older revision		Revision as of 15:30, 22 August 2023
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			[[File:2023-07-20 152553.png\|thumb\|<ref>https://www.direxion.com/product/daily-20-year-treasury-bull-bear-3x-etfs</ref>\|none]]
	== Overview ==		== Overview ==
	{{Infobox company		{{Infobox company
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	(as of 16/08/2022)}}		(as of 16/08/2022)}}
	DRV, Direxion Daily Real Estate Bear 3X Shares seek daily investment results, before fees and expenses, of 300%, or 300% of the inverse (or opposite), of the performance of the Real Estate Select Sector Index (IXRETR).		DRV, Direxion Daily Real Estate Bear 3X Shares seek daily investment results, before fees and expenses, of 300%, or 300% of the inverse (or opposite), of the performance of the Real Estate Select Sector Index (IXRETR).
	~~[[File:2023-07-20 152553.png\|thumb\|<ref>https://www.direxion.com/product/daily-20-year-treasury-bull-bear-3x-etfs</ref>\|none]]~~
	== The Idea ==		== The Idea ==
	Investment thesis of this product is betting against the real estate market, especially REITs (real estate investment trusts), companies with ownership of incoming producing real estate.		Investment thesis of this product is betting against the real estate market, especially REITs (real estate investment trusts), companies with ownership of incoming producing real estate.

>Dk0709 at 14:30, 22 August 2023

2023-08-22T14:30:24Z

← Older revision		Revision as of 15:30, 22 August 2023
Line 10:		Line 10:
	(as of 16/08/2022)}}		(as of 16/08/2022)}}
	DRV, Direxion Daily Real Estate Bear 3X Shares seek daily investment results, before fees and expenses, of 300%, or 300% of the inverse (or opposite), of the performance of the Real Estate Select Sector Index (IXRETR).		DRV, Direxion Daily Real Estate Bear 3X Shares seek daily investment results, before fees and expenses, of 300%, or 300% of the inverse (or opposite), of the performance of the Real Estate Select Sector Index (IXRETR).
			[[File:2023-07-20 152553.png\|thumb\|<ref>https://www.direxion.com/product/daily-20-year-treasury-bull-bear-3x-etfs</ref>\|none]]
	== The Idea ==		== The Idea ==
	Investment thesis of this product is betting against the real estate market, especially REITs (real estate investment trusts), companies with ownership of incoming producing real estate.		Investment thesis of this product is betting against the real estate market, especially REITs (real estate investment trusts), companies with ownership of incoming producing real estate.
	~~[[File:2023-07-20 152553.png\|thumb\|<ref>https://www.direxion.com/product/daily-20-year-treasury-bull-bear-3x-etfs</ref>\|none]]~~
	{\| class="wikitable"		{\| class="wikitable"
	!Data		!Data

>Dk0709 at 14:29, 22 August 2023

2023-08-22T14:29:58Z

← Older revision		Revision as of 15:29, 22 August 2023
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	== Overview ==		== Overview ==
	[[File:2023-07-20 152553.png\|thumb\|<ref>https://www.direxion.com/product/daily-20-year-treasury-bull-bear-3x-etfs</ref>]]DRV, Direxion Daily Real Estate Bear 3X Shares seek daily investment results, before fees and expenses, of 300%, or{{Infobox company		{{Infobox company
	\| name = Direxion Daily Real Estate Bear 3x ETF		\| name = Direxion Daily Real Estate Bear 3x ETF
	\| trade_name = DRV		\| trade_name = DRV
Line 8:		Line 8:
	\| website = https://www.direxion.com/product/daily-real-estate-bull-bear-3x-etfs		\| website = https://www.direxion.com/product/daily-real-estate-bull-bear-3x-etfs
	\|ratio=Expense ratio: 1.08%		\|ratio=Expense ratio: 1.08%
	(as of 16/08/2022)}} 300% of the inverse (or opposite), of the performance of the Real Estate Select Sector Index (IXRETR).		(as of 16/08/2022)}}
			DRV, Direxion Daily Real Estate Bear 3X Shares seek daily investment results, before fees and expenses, of 300%, or 300% of the inverse (or opposite), of the performance of the Real Estate Select Sector Index (IXRETR).
	== The Idea ==		== The Idea ==
	Investment thesis of this product is betting against the real estate market, especially REITs (real estate investment trusts), companies with ownership of incoming producing real estate.		Investment thesis of this product is betting against the real estate market, especially REITs (real estate investment trusts), companies with ownership of incoming producing real estate.
			[[File:2023-07-20 152553.png\|thumb\|<ref>https://www.direxion.com/product/daily-20-year-treasury-bull-bear-3x-etfs</ref>\|none]]
	{\| class="wikitable"		{\| class="wikitable"
	!Data		!Data
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	Typical holdings of an leveraged ETF include a signficant proportion invested in short term securities and a smaller position on volatile derivatives. Large amount of cash is generally used to meet financial obligations caused by the losses on the derivatives. This is held by maintaing a constant leverage ratio.		Typical holdings of an leveraged ETF include a signficant proportion invested in short term securities and a smaller position on volatile derivatives. Large amount of cash is generally used to meet financial obligations caused by the losses on the derivatives. This is held by maintaing a constant leverage ratio.

			== Macroeconomics ==

			=== Mortgage Rates ===
			Mortgage rates are heavily correlated with the US Federal Funds Rate (interest rates) and therefore the US 10 year treasury yields. Graph below displays the positive correlation between 30 year fixed mortgage and 10 year treasury yield in the United States.
			[[File:123123.png\|none\|thumb\|958x958px\|30 year fixed mortgage rate<ref>https://fred.stlouisfed.org/series/MORTGAGE30US</ref>, 10 year treasury US yield <ref>https://fred.stlouisfed.org/series/DGS10#0</ref>]]
			Mortgage rates as of 22/08/2023, have surpassed 7% and reached the highest level since 2000<ref>https://www.cnbc.com/2023/08/21/mortgage-rates-hit-highest-point-since-2000.html</ref>. High mortgage rates drastically decreases the affordability in the residential real estate sector which mainly consists of housing.

			=== U.S. Case Shiller Index ===
			[[File:11111111111.png\|none\|thumb\|931x931px\|Case Shiller Index US<ref>https://fred.stlouisfed.org/series/CSUSHPINSA#0</ref>]]


			S&P Case Shiller Index indicates the benchmark of mean single family home prices in the United States. The graph displays upward trends during quantitative easing phase as printing money leading to currency devaluation, and liquidity gets injected into the real estate market in order for investors to preserve the wealth.

			This index tracks the purchase prices and resale prices of homes with two month lagging time.

	==Risk assessment==		==Risk assessment==
	===Risks as a Leveraged ETF===		===Risks as a Leveraged ETF===
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	Expense ratio also plays a role. Expense ratio indicate the annual percentage of an investor's investment for the ETF provider for providing the service as commission. 3x Leveraged ETF typically has a relatively high expense ratio which negatively impacts an investor's portfolio.		Expense ratio also plays a role. Expense ratio indicate the annual percentage of an investor's investment for the ETF provider for providing the service as commission. 3x Leveraged ETF typically has a relatively high expense ratio which negatively impacts an investor's portfolio.
	===Macroeconomic risks===		===Macroeconomic risks===
	Similar to TMF, the biggest risk which may put downward pressure on the performance of DRV is the resilience of the economy.		Similar to TMF, the biggest risk which may put downward pressure on the performance of DRV is the resilience of the economy and the stability of the real estate market.

			Strong labour market gives room for the federal reserve for more rate hikes as it indicates the strength of the economy.<ref>https://www.cnbc.com/2023/07/07/jobs-report-june-2023-.html</ref>

	~~Strong labour market gives room for the federal reserve for more rate hikes as it indicates the strength of the economy.<ref>https://www.cnbc.com/2023/07/07/jobs-report-june-2023-.html</ref>~~		=== Housing Shortage ===

>Dk0709 at 07:48, 20 August 2023

2023-08-20T07:48:12Z

@@ Line 1: / Line 1: @@
 == Overview ==
-The Direxion Daily Real Estate Bull and Bear 3X Shares seek daily investment results, before fees and expenses, of 300%, or{{Infobox company
+[[File:2023-07-20 152553.png|thumb|<ref>https://www.direxion.com/product/daily-20-year-treasury-bull-bear-3x-etfs</ref>]]DRV, Direxion Daily Real Estate Bear 3X Shares seek daily investment results, before fees and expenses, of 300%, or{{Infobox company
 | name = Direxion Daily Real Estate Bear 3x ETF
 | trade_name = DRV
@@ Line 11: / Line 11: @@
 == The Idea ==
 {| class="wikitable"
 !Data
@@ Line 36: / Line 37: @@
 |47.68
 |}
 ==Ownership==
 Main institutional ETF and options ownership.
@@ Line 222: / Line 238: @@
 == Real Estate Investment Trusts (REITs) ==
 ==Leveraged ETFs==
@@ Line 229: / Line 246: @@
 Typical holdings of an leveraged ETF include a signficant proportion invested in short term securities and a smaller position on volatile derivatives. Large amount of cash is generally used to meet financial obligations caused by the losses on the derivatives. This is held by maintaing a constant leverage ratio.

>Dk0709: /* Ownership */

2023-08-16T08:35:27Z

Ownership

← Older revision		Revision as of 09:35, 16 August 2023
Line 39:		Line 39:
	Main institutional ETF and options ownership.		Main institutional ETF and options ownership.
	{\| class="wikitable"		{\| class="wikitable"
	\|+Main institutional ownership (as disclosed in their latest 13F filing / 16/08/2023)<ref>https://fintel.io/so/us/~~tmf~~</ref>		\|+Main institutional ownership (as disclosed in their latest 13F filing / 16/08/2023)<ref>https://fintel.io/so/us/drv</ref>
	!Investor		!Investor
	!Shares		!Shares

>Dk0709 at 08:25, 16 August 2023

2023-08-16T08:25:45Z

@@ Line 36: / Line 36: @@
 |47.68
 |}
+==Ownership==
 == Real Estate Select Sector Index (IXRETR) ==
 {| class="wikitable"
 !Top Ten Holdings
@@ Line 94: / Line 158: @@
 |3.58
 |}