Compare and contrast key facts about Direxion Daily S&P 500 Bull 3X Shares (SPXL) and SPDR S&P 500 ETF (SPY).
SPXL and SPY are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SPXL is a passively managed fund by Direxion that tracks the performance of the S&P 500 Index (300%). It was launched on Nov 5, 2008. SPY is a passively managed fund by State Street that tracks the performance of the S&P 500 Index. It was launched on Jan 22, 1993. Both SPXL and SPY are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: SPXL or SPY.
SPY - Sharpe Ratio Comparison. The current SPXL Sharpe Ratio is 2.16, which roughly equals the SPY Sharpe Ratio of 2.36. The chart below compares the 12-month rolling Sharpe Ratio of SPXL and SPY.
As with any financial instrument, investing in SPXL requires thorough research and understanding, and given its unique structure and inherent risks associated with leverage (such as compounding), it might not be suitable for all investors.
Looking closely, you can see that each SPX contract is about 10 times the value of a SPY option because the S&P 500 Index is approximately 10X times higher than SPY in numerical terms. Although trading SPX options requires more capital, the tax treatment on SPX options is better.
Ownership Architecture: SPX represents an ethereal index, while SPY is an earthly exchange-traded fund (ETF). The former is an abstract concept, an embodiment of market performance, while the latter is a tangible security with physical shares.
High rewards potential means high risk. That means you have a higher risk of losing your investment if the performance suddenly drops rapidly, thanks to its triple performance return potential.
The historical average is negative: -1.3%. SPXL has suffered a decay since it was launched, but the drift was dwarfed by the bullish trend: the total return is 1841% (23% annualized). The drift went in negative territory in the March 2020 meltdown due to whipsaw in daily returns.
Direxion Shares ETF Trust quote is equal to 129.100 USD at 2024-05-10. Based on our forecasts, a long-term increase is expected, the "SPXL" stock price prognosis for 2029-05-04 is 135.205 USD. With a 5-year investment, the revenue is expected to be around +4.73%.
Average Return. In the past year, QQQ returned a total of 39.07%, which is significantly higher than SPY's 30.74% return. Over the past 10 years, QQQ has had annualized average returns of 18.80% , compared to 12.91% for SPY. These numbers are adjusted for stock splits and include dividends.
SPY is the ticker symbol for an exchange-traded fund that tracks the performance of the S&P 500 index; it is traded like a stock. SPX is simply the numerical value that represents the level of the S&P 500 index and is not directly tradable.
The fund is highly volatile and not suitable for risk-averse investors, but may be useful for those with a short-term bullish market bias. However, SPXL can also be considered by some for long-term investing with the potential of market-beating returns. It's critical to make note of potential risks, however.
SPXL has a dividend yield of 0.86% and paid $1.15 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 19, 2024.
The Vanguard 500 Index Fund Admiral Class (VFIAX) and the SPDR S&P 500 ETF (SPY) are similar investment products. Both track the S&P 500, a U.S. stock index comprising 500 companies with the largest market capitalizations.
The SPDR S&P 500 ETF is listed on the New York Stock Exchange and trades under the ticker symbol SPY. The SPY's price tracks the S&P 500 index. The SPDR S&P 500 ETF allows investors to track the performance of the US economy without having to buy all the stocks listed on the S&P 500 directly.
The table demonstrates that the difference between SPY and QQQ is that the S&P 500 Index and SPY ETF provide much better options for diversification across economic sectors. Despite this, the tech sector accounts for over a third of assets in this fund and is actually 3 times more than the second largest sector.
SPY - Expense Ratio Comparison. VTSAX has a 0.04% expense ratio, which is lower than SPY's 0.09% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Address: 2865 Kasha Unions, West Corrinne, AK 05708-1071
Phone: +3512198379449
Job: Design Planner
Hobby: Graffiti, Foreign language learning, Gambling, Metalworking, Rowing, Sculling, Sewing
Introduction: My name is Dong Thiel, I am a brainy, happy, tasty, lively, splendid, talented, cooperative person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
