Direxion Daily Regional Banks Bull 3X Shares

DPST

Market cap $541M

The Direxion Daily Regional Banks Bull 3X Shares offers leveraged exposure to regional banks but carries significant risks due to daily resetting and value erosion. Regional banks appear attractive with reasonable valuations, controlled CRE risks, and potential upside from industry consolidation, especially as acquisition activity may increase. DPST is best suited for short-term, speculative trades on imminent events, not for long-term holding due to its daily resetting.

Top Performing Leveraged/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.

US banks' net interest margins are poised to expand, but higher-for-longer interest rates and uncertainty created by tariffs will push credit costs higher and limit earnings growth in 2025. Banks' earnings should remain healthy through the first half of the year, buoyed by continued margin expansion, steady loan growth and benign credit quality.

Direxion Daily Regional Banks Bull 3X Shares ETF offers 3x daily exposure to regional banks, but is only suitable for short-term trading due to compounding and value decay risks. Macroeconomic factors like potential Fed rate cuts in 2025 could benefit regional banks and DPST, but industry headwinds and credit risks persist. Leveraged ETFs like DPST carry amplified downside risk, require careful risk management, and are not appropriate for long-term holding.

Top Performing Leveraged/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.

Top Performing Leveraged/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.

DPST seeks to deliver 300% (3x) the return of the S&P Regional Banks Select Industry Index. DPST surged in value on the back of deregulation and tax cut expectations, but recent U.S. economic uncertainty has sapped investor enthusiasm. Regional bank forward P/E ratios are the lowest in the last six months, offering a wide margin of safety relative to U.S. financials.

Top Performing Levered/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.

Wall Street gained last week on Gaza truce and solid bank earnings. Cooling inflation and moderate retail sales sparked hopes for a dovish Fed in the near term.

The Direxion Daily Regional Banks Bull 3X Shares ETF seeks to deliver 300% (3x) the return of an index composed of US regional banks. US regional banks trade at attractive valuations and will benefit from robust economic growth projected for the US economy in 2025. Wall Street analysts expect DPST's largest holdings to deliver double-digit gains over the next 12 months.