1-Star ETFs Poised to Plunge: Direxion Daily Gold Miners Bear 3x?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the Direxion Daily Gold Miners Bear 3x Shares (NYS: DUST) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at the Direxion ETF, and see what CAPS investors are saying about it right now.



December 2010

Total Net Assets

$31.4 million

Investment Approach

Seeks daily investment results of 300% of the inverse (or opposite) of the performance of the NYSE Arca Gold Miners Index. The index is comprised of publicly traded companies that are involved primarily in the mining for gold and silver.

Expense Ratio


3-Month / Year-to-Date / 1-Year Return

(41.2%) / (45.3%) / (20.3%)


Direxion Daily Gold Miners Bull 3x Shares

Market Vectors Gold Miners ETF

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 91% of the 113 members who have rated the Direxion ETF believe it will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star TerryHogan, succinctly summed up the bear case for our community:

This is set up to match the inverse of daily performance, not long-term, so it will degrade with the passage of time. Plus, quantitative easing, and Bernanke working into the night on the cash printing press should be supportive if not bullish for gold.

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The article 1-Star ETFs Poised to Plunge: Direxion Daily Gold Miners Bear 3x? originally appeared on Fool.com.

Fool contributorBrian Pacamparaowns no position in any of the companies mentioned.Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

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