If you're interested in a high-growth energy stock, you may want to consider investing in GUSH. This energy stock has been gaining over 100% in recent months. However, GUSH also has a dose of leverage, thanks to a new fund that aims to generate investment results that are 200% greater than the S&P Oil & Gas Exploration Investing Select Industry Index. The fund is managed by Direxion, which rebalances exposure every day by buying and selling swaps.
There have been several recent trading signals for Gush Stock, including an uptrend and a breakout above the upper Bollinger Band. These signals indicate that the stock is about to take a turn and could soon fall. The uptrend has been supported by the Aroon Indicator, which has been rising in 253 out of the last 62 trading days. Furthermore, GUSH has been in an overbought state for the past two days, and a breakout above the middle band could indicate a potential stock drop.
GUSH Stock is a potential buy candidate. It has been downtrending for a while, but has recently turned up. As of today, the stock has been trading above its lows. In addition, the stock has been outperforming the market in the past three years and has outperformed the market in the last five to 10 days. If the stock does reach its resistance level, it will probably retrace back to its midpoint.
ERX is a high-risk ETF with a history of large upswings and downswings. With a beta of 4.5, it is almost 5 times as volatile as the S&P 500 index. While it may be a great satellite holding for a savvy investor, it should not be the core of a balanced portfolio. However, investors who are willing to take the risk can see great upside.
The fund seeks a three-fold return on investment prior to 2020, but has been limited to a two-fold return over the past year. It is an open-ended investment company that is advised by Rafferty Asset Management, LLC. The fund is actively managed and can have high costs. The fund has an expense ratio of 1.00%, which does not include brokerage costs. In addition to these expenses, ERX has high turnover.
The Energy Select Sector Index ETF (ERX) provides investors with exposure to energy assets across the US. This index tracks stocks in oil, gas, oil and gas products, energy equipment and services, and domestic energy companies. Its leverage is 2x daily and compounded over several periods, making it ideal for investors with a bullish short-term outlook. However, this type of ETF is not suitable for those with a low risk tolerance or a buy-and-hold strategy.
One way to compare the two ETFs is by looking at the performance of their underlying benchmarks. On Monday, the S&P Oil & Gas Exploration – Production Select Industry Index fell by 34%. This was due to the reverse split that was announced by Direxion, which is the parent company of GUSH and the Direxion Daily Energy Bull 3X Shares. Both GASL and GUSH are commodity equities that have high volatility.
ERX Direxion Daily S&P Oil & Gas Exploration & Production Bull 2X Shares
The ERX Direxion Daily S… Exploration Investing Fund (ERX) is a mutual fund that tracks the performance of the S&P Oil – Gas Exploration indices. The fund charges 95 bps in annual fees. It has a total asset base of $869.8 million and specializes in oil and gas stocks. The fund uses derivatives to make its investments. The ETF includes such companies as Chevron and Exxon Mobil.
ERX's objective is to achieve a daily investment return of at least 200% of the S&P Oil – Gas Exploration Investing Select Industry Index (SPSIOPTR). This fund includes both foreign and domestic companies within the oil and gas exploration and production sub-industry. However, the fund does not pay a dividend, so investors should expect a high bid/ask spread.
GUSH is a leveraged ETF that offers investors a higher return for the same capital. In 2020, many North American E&P companies were in danger of bankruptcy due to bloated balance sheets brgo stock and debt maturities. In 2021, this sub-index has experienced an explosive share price performance due to lower production costs. Investors who want to profit from this share price increase can purchase GUSH outright or through call options. This investment is not suitable for long-term investors.
The fund manager Rafferty Asset Management limits the portfolio's response to changes in the underlying benchmark. However, the S&P Oil & Gas Exploration – Production Select Industry Index fell by 34% on Monday. In addition, the fund recently announced a 1-for-40 reverse split on GUSH and a 1-for-10 reverse split on GASL. This reverse split is expected to continue generating strong returns in the near future.