What Are The 4 Most Traded 2x And 3x Gold ETFs?

DUST is an extremely aggressive inverse play on perhaps the most widely followed gold mining index the NYSE Arca Gold Miners Index and the widely held ETF that tracks it GDX. The index is tracking about 30 firms engaged in the precious metals mining industry globally, with a strong bias to large gold and silver mining firms. DUST is promising to provide inverse exposure to these firms with a leverage factor of 3 daily. The last point is important because investors trying to make a long-term bet against gold mining shares can only use DUST to do so if they are willing to frequently adjust their position in the fund. The good news is the market for DUST stock news or other stock news like Nyse ddd at https://www.webull.com/quote/nyse-ddd is trading in large volumes each day, although spreads can be significant.

Traded 2x And 3x Gold ETFs

Gold has long been considered a haven for investors looking to park their money in times of economic uncertainty. While holding physical gold has become less prevalent over time, investors can now gain easy exposure to gold through exchange-traded funds, or ETFs focused on both physical gold and gold mining companies. Gold is often a frequent target of market speculators looking to bet on short-term economic fluctuations.

  • Gold Futures and Leveraged Funds

Other than buying physical gold, another way to gain exposure is through the use of futures contracts. Gold futures are often used for short-term, risk-hedging strategies and day trading, but rarely make ideal longer-term portfolio holdings. One of the key benefits of futures contracts is that they allow risk-taking investors the opportunity to get a lot of exposure to a particular asset at a relatively low cost.

ETF fund providers Direxion and ProShares specialize in leveraged fund products that cover a multitude of markets, sectors, and assets. Therefore, it shouldn’t be surprising that these providers manage the most actively traded leveraged gold ETFs in the marketplace. These leveraged gold funds come at a cost though, mainly high volatility and expense ratios near 1%.

  • Direxion Daily Gold Miners Bear 3x ETF (DUST)

The Direxion Daily Gold Miners Bear 3x ETF (NYSEARCA: DUST) aims to deliver triple the inverse of the daily price performance of the New York Stock Exchange (NYSE) Arca Gold Miners Index. Launched in 2010, this fund has more than $362 million in total assets. The Direxion Daily Gold Miners Bear 3x ETF was trading on an average volume of 18.7 million shares per day in early November 2019. If you want more details relating to stock like Nasdaq gh, you can check at https://www.webull.com/quote/nasdaq-gh .

John Peterson

Amanda Peterson: Amanda is an economist turned blogger who provides readers with an in-depth look at macroeconomic trends and their impact on businesses.