The Direxion Daily Gold Miners Index Bull 2X Shares (NUGT) is one of the leveraged ETFs. This fund is seeking returns for short-term trades of a single day and it is best suited for active, experienced investors who understand leverage risk and volatility. NUGT stock price at https://www.webull.com/quote/nysearca-nugt is a 3x leveraged bet on the NYSE Arca Gold Miners Index a market-cap-weighted index of large gold and silver mining firms. It is designed to provide a 1-day bet on the index. NUGT is designed to be held for no more than one trading day. The ETF should be used only by investors they are understanding leverage risk and who actively manage their investments.
Trading Risks and NUGT
- NUGT is coming with a relatively hefty 1.17% expense ratio. The fund is attempting to track 200% of the performance of the NYSE Arca Gold Miners Index via futures contracts, short positions, reverse purchase agreements, options, swap agreements, and similar exotic trading tactics.
- Because of increased market volatility, Direxion reduced the daily leverage exposure from triple to double. To reflect this shift, the fund changed its name from Direxion Daily Gold Miners Index Bull 3X Shares to Direxion Daily Gold Miners Index Bull 2X Shares.
Deciding Whether to Trade NUGT
- Because of the high risk, you are likely looking to NUGTstock price, not invest. In that case, it’s possible to see substantial returns in a very short period.
- The key is to ensure you’re on the right side of the trend, which makes trading easier due to higher odds of appreciation, which leads to the ability to lock in gains.
- In deciding whether to trade NUGT, one would need to determine in which direction they believe the NYSE Arca Gold Miners Index will move based on their research of the gold market.
- Besides, it is important to assess the top holdings of the ETF and determine where those positions are likely to move as well.
NUGT Key Metrics
NUGT is requesting daily investment results of 200% of the performance. It is the benchmark and the NYSE Arca Gold Miners Index. There is no guarantee the fund will meet these stated investment objectives and the fund should not be expected to provide two times the benchmark’s cumulative return for periods greater than a day. Key metrics for NUGT (as of March 31, 2020) include:
- 1-year daily total return: -66.48%
- Inception date: Dec. 8, 2010
- Expense ratio: 1.17%
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