Leveraged ETF Watchlist And SPUU's Ongoing Drift

The Direxion Daily S&P 500 Bull 2X Shares ETF aims to deliver twice the daily return of the S&P 500 Index. SPUU and other leveraged ETFs experience "drift" or decay, especially in volatile or sideways markets, eroding long-term returns. Historical data shows SPUU outperforms in bull markets but suffers significant capital erosion during choppy periods due to negative drift.

Seeking Alpha • Nov 2, 2025

Erosion Goes On For SPUU

The Direxion Daily S&P 500 Bull 2X Shares ETF offers profitable swing trading in bull markets, but its 2X leverage causes performance drift and decay, especially in volatile or sideways markets. Leveraged ETF decay is mainly due to beta-slippage, with higher leverage and volatility increasing the negative drift over time. SPUU's historical and simulated returns show that long-term outperformance over SPY is minimal, with significant drawdowns and persistent negative drift.

Seeking Alpha • Aug 1, 2025

Leveraged ETFs Report And Focus On SPUU: Not A Long-Term Investment

Leveraged ETFs like Direxion Daily S&P 500 Bull 2X Shares ETF (SPUU) can be profitable in trending markets but suffer from beta-slippage. This article reports the drifts of 22 leveraged ETFs. Those in semiconductors show particularly large decays. SPUU's 12-month drift has been almost continuously negative since January 2022, highlighting its risk as a long-term holding.

Seeking Alpha • May 2, 2025

2 S&P 500 ETFs for Growth and Leverage in a Hot Market

To put it mildly, it's been a very good couple of years for the S&P. Following a tepid 2022, the banner S&P 500 index has accelerated growth from 2023 into 2024.

MarketBeat • Feb 21, 2025

SPUU Ongoing Decay And Leveraged ETFs Monthly Watchlist

Direxion Daily S&P 500® Bull 2X Shares ETF magnifies returns in uptrends, but suffers from drift due to beta-slippage. Drift analysis reveals that leveraged ETFs in high-volatility industries experience significant decay, while steady trends can result in positive drift. SPUU has been profitable since inception, but shows concerning long-term performance and high draw-downs, making it suitable only for seasoned investors.

Seeking Alpha • Feb 3, 2025

SPUU: Volatility With Results And Strong Momentum Can Be Opportunities

The S&P 500 is highly concentrated in its top 10 companies, with five releasing results this week, boosting confidence. The put/call ratio of 1.43x, below the historical average, indicates strong market confidence, supporting a short-term investment strategy. Despite the risks of leveraged ETFs, the potential for a 24% target appreciation makes this an attractive opportunity for daring investors.

Seeking Alpha • Oct 30, 2024

SPUU Is Still In Negative Drift Mode: August Leveraged ETFs Dashboard

Leveraged ETFs have an unpredictable, path-dependent drift. This article series reports a monthly drift dashboard with 22 of them. Leveraged ETFs in semiconductors show the largest decay in July.

Seeking Alpha • Aug 2, 2024

3 Leveraged ETFs That Aggressive Investors Should Be Buying Now

If you're interested in private equity, there might be a cheaper solution through these three leveraged ETFs to buy. What does that have to do with private equity?

InvestorPlace • Jun 6, 2024

SPUU Erosion Is Advancing: May Drift Dashboard

Leveraged ETFs have a path-dependent drift: here is a dashboard with 22 of them. Leveraged ETFs in semiconductors, biotechnology and silver show the largest drifts. The Direxion Daily S&P 500® Bull 2X Shares ETF has suffered from decay recently, and its drift has deteriorated recently.

Seeking Alpha • May 1, 2024

Leveraged ETFs to Ride on S&P's New 5,200 Milestone

The S&P 500 Index closed above 5,200 for the first time ever, following the Fed's signal to cut interest rates. This will mark the end of the most aggressive Fed hiking cycle and fuel corporate profits.

Zacks Investment Research • Mar 21, 2024