Megaphone icon ETF Database is now VettaFi. Read More >
ETFdb Logo
ETFdb Logo
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Nasdaq Investment Intelligence
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Database
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
    • ETFs Future-Forward 2021: An iShares Investing Symposium
    • Three Themes for 2021: An iShares & MSCI Investing Symposium
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Leveraged & Inverse ETF Channel
  2. Utilities and Discretionary Income ETFs See Recovery
Leveraged & Inverse ETF Channel
Share

Utilities and Discretionary Income ETFs See Recovery

Ben HernandezFeb 03, 2022
2022-02-03

Traders have been feeling the ebb and flow of the markets with volatility as of late, but that only paves the way for trades in sectors like utilities and consumer discretionary.

In particular, market movements have been evident in the Direxion Daily Utilities Bull 3X Shares (UTSL) and the Direxion Daily Consumer Discretionary Bull 3X ETF (WANT). With the triple leverage of both funds, traders have the opportunity to amplify their gains when their bullish notion is strong.

Thus far, the past five days have been for the bulls. UTSL is up 13% while WANT is up 9% — both highlighting the recovery in the major stock indexes after inflation fears and rising yields resulted in a dismal January for equities.

UTSL seeks daily investment results, before fees and expenses, of 300% of the daily performance of the Utilities Select Sector Index. The fund invests at least 80% of its net assets (plus borrowing for investment purposes) in financial instruments, such as swap agreements, securities of the index, ETFs that track the index, and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index.

WANT seeks daily investment results equaling 300% of the daily performance of the Consumer Discretionary Select Sector Index. Both ETFs are ideal for short-term trades to capitalize on daily market moves as opposed to a long-term hold.

Direxion Daily Utilities Bull 3x

Long-Term Chart Could Mean Strength Overall

Both UTSL and WANT present a dichotomy for traders to consider when looking at potential market plays. Utilities represent things consumers need, while consumer discretionary items make up non-essential goods and services — things people want rather than need (hence, the WANT ticker).

Either way, both have been trending higher in the long term — in a one-year time frame, UTSL is up 23% and WANT is up 35%. Towards the end of 2021, WANT pushed above an 80% gain at one point before falling back down to earth, possibly fueled by a holiday retail surge.

With the prices of goods and services rising due to inflation, both ETFs could serve as a hedging tool. Because of their triple leverage, however, only advanced traders should consider these funds.


Content continues below advertisement

Direxion Daily Utilities Bull 3x 2.png

For more news, information, and strategy, visit the Leveraged & Inverse Channel.

Loading Articles...
Help & Info
  • Contact Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

Equity ETF Channel

Retirement Portfolio Redux: Is the 60%-40% Portfolio Dead?

Debbie CarlsonOct 22, 2020
2020-10-22

With the 10-year U.S. Treasury yield hovering below 1% and Federal Reserve Chairman Jerome Powell...

Equity ETF Channel

Portfolio Diversification Isn't Dead, It Was Just Sleeping

Debbie CarlsonOct 15, 2020
2020-10-15

Investors could be forgiven to think there was no reason to invest outside of the U.S. for the...

}
X