JDST 2x Short
Direxion Daily Jr Gold Miners Bear 2X
Shorts: Jr Gold Miners (GDXJ)
Expense Ratio
1.08%
Leverage
2x Inverse
Issuer
Direxion
Inception
Oct 2013
JDST ETF Fact Check
| What it is | JDST is Direxion Daily Jr Gold Miners Bear 2X, an inverse ETF tied to Jr Gold Miners (GDXJ). |
|---|---|
| Daily target | 2x Inverse exposure before fees, expenses, tracking error, and daily compounding effects. |
| Cost check | Expense ratio shown here: 1.08%. Verify the latest fee, holdings, and prospectus on the issuer page before trading. |
| Holding-period check | Leveraged inverse ETFs are designed around daily objectives; multi-day returns can diverge sharply from the simple inverse multiple. |
Source checks: Direxion ETF pages for current fund documents and the SEC/FINRA leveraged and inverse ETF bulletin for daily reset risk. Inception shown here: Oct 2013.
High Risk Leveraged Product
JDST is a 2x leveraged inverse ETF designed for short-term trading only. Daily rebalancing causes significant decay over time. NOT suitable for buy-and-hold investors.
What JDST Shorts
JDST is designed to deliver daily investment results, before fees and expenses, that correspond to 200% of the inverse of the daily performance of the MVIS Global Junior Gold Miners Index (GDXJ).
It uses financial derivatives like swaps to achieve its 2x inverse leveraged exposure to a basket of small and mid-cap gold and silver mining companies.
Key Risks
- Leverage Risk: Daily resetting 2x leverage magnifies losses and causes volatility decay, especially in volatile or sideways markets.
- Compounding Risk: Designed for daily returns only; holding periods longer than one day can result in returns that diverge significantly from twice the inverse of the index's return.
- Sector Concentration Risk: Performance is tied to the volatile junior gold mining sector, which is sensitive to commodity prices, operational issues, and geopolitical events.
- Counterparty Risk: Relies on derivatives and swap agreements with financial institutions, exposing the fund to potential default.
- High Expense Ratio (1.08%): The cost of maintaining leverage is high and erodes returns over time.
Best Use Cases
- Short-term hedging for investors with a concentrated long position in junior gold mining stocks.
- Sophisticated traders making short-term tactical bets on a decline in the junior gold mining sector.
- As a portfolio hedge against a potential downturn in gold prices or mining equities for a day or two.
- Not suitable for long-term buy-and-hold investing due to compounding effects.