1-Star ETFs Poised to Plunge: Direxion Daily S&P 500 Bear 3x Shares?


Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Direxion Daily S&P 500 Bear 3x Shares (NYS: SPXS) 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.

SPXS facts


November 2008

Total Net Assets

$193.8 million

Investment Approach

Seeks daily investment results of 300% of the inverse (or opposite) of the price performance of the S&P 500 Index. The S&P 500 Index is a capitalization-weighted index composed of 500 domestic common stocks.

Expense Ratio


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

(41.8%) / (62.9%) / (45.7%)

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

On CAPS, 88% of the 290 All-Star members who have rated the Direxion ETF believe it will underperform the S&P 500 going forward.

A few weeks ago, one of those Fools, TerryHogan, succinctly summed up his bear call on SPXS: "Just a bet on the long-term upward trend of the S&P 500 coupled with the inevitable long-term decline of a 3X leveraged ETF with an expense ratio -- these things are like pet baby [alligators: The] longer you keep them, the more dangerous they become."

If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, our special report on ETFs highlights three funds that are poised to soar in the next recovery. It's 100% free, but won't last forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

The article 1-Star ETFs Poised to Plunge: Direxion Daily S&P 500 Bear 3x Shares? 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 don't 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.