Overview
The Direxion Daily Real Estate Bull and Bear 3X Shares seek daily investment results, before fees and expenses, of 300%, or
| DRV | |
| Type | 3x Inverse Leveraged ETF |
| Founded | 16th July 2009 |
| Founder | Direxion |
| Capital ratio | Expense ratio: 1.08% (as of 16/08/2022) |
| Website | https://www.direxion.com/product/daily-real-estate-bull-bear-3x-etfs |
300% of the inverse (or opposite), of the performance of the Real Estate Select Sector Index (IXRETR).
The Idea
| Data | Value (as of 16/08/2023) |
|---|---|
| Current Price | $49.20 |
| AUM | $128.35B |
| Beta | -2.90 |
| Expense Ratio | 1.08% |
| Yield | 2.76% |
| 52 week range | $35.23 - $84.94 |
| Net Asset Value | 47.68 |
Ownership
Main institutional ETF and options ownership.
| Investor | Shares | Options (if applicable) |
|---|---|---|
| Susquehanna International Group | 93,300 | Call |
| Citadel Advisors Llc | 87,500 | Call |
| Susquehanna International Group | 66,700 | Put |
| Jane Street Group | 48,587 | |
| Virtu Financial LLC | 37,722 | |
| Barclays Plc | 21,190 | |
| Cutler Group LC | 11,000 | Call |
| Morgan Stanley | 6,790 | |
| Bank of America Corp | 1,367 | |
| Simplex Trading Llc | 1,158 | |
| Belpointe Asset Management LLC | 500 | |
| Qube Research & Technologies Ltd | 111 | |
| Fmr Llc | 80 | |
| Bank of Montreal | 64 |
Real Estate Select Sector Index (IXRETR)
The Real Estate Select Sector Index represents the performance of the securities of companies in industries including real estate management, real estate investment trusts (REITs) and real estate development. This index however is not directly investable, thus using leveraged ETF can act as an alternative.
| Top Ten Holdings | Ticker | Market Capitalisation | Holding Percentage (%) |
|---|---|---|---|
| Prologis REIT | PLD | $114.21B | 12.21 |
| American Tower Class A REIT | AMT | $88.84B | 9.75 |
| Equinix Inc Common Stock REIT | EQIX | $75.35B | 7.91 |
| Crown Castle International | CCI | $46.4B | 5.33 |
| Public Storage | PSA | $49.15B | 4.98 |
| Realty Income REIT | O | $40.64B | 4.34 |
| Welltower Inc. | WELL | $41.54B | 4.34 |
| Simon Property Group REIT | SPG | $46.43B | 4.07 |
| CoStar Group | CSGP | $32.63B | 3.92 |
| Digital Realty | DLR | $35.94B | 3.58 |
IXRETR also has various sectors within Real Estate illustrated below.
| Sector Weighting | Type of Sector | Holding Percentage (%) |
|---|---|---|
| Telecom Tower REITs | REIT | 17.79 |
| Industrial REITs | REIT | 12.21 |
| Multi-Family Residential REITs | Residential | 11.55 |
| Retail REITs | Commercial | 11.52 |
| Data Centre REITs | REIT | 11.49 |
| Health Care REITs | REIT | 7.56 |
| Self Storage REITs | REIT | 7.15 |
| Other Specialised REITs | REIT | 5.19 |
| Research and Consulting Services | Service provider | 3.92 |
| Office REITs | Commercial | 2.81 |
| Real Estate Services | Service provider | 2.71 |
| Timber REITs | REIT | 2.65 |
| Single Family Residential REITs | Residential | 2.16 |
| Hotel & Resort REITs | Commercial | 1.29 |
Real Estate Investment Trusts (REITs)
Leveraged ETFs
Leveraged ETFs (exchange traded funds) are products which utilises financial derivatives such as future contracts, options and swaps in order to deliver the desired return of a particular index. [2]
Due to the high risk, TMF is typically used by traders to profit from the index's short term trends or through technical analysis. Therefore leveraged ETFs have the potential to provide significant gains as well as losses, and provide both long and short exposure to a certain index.
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.