Fitz919

Direxion Leveraged ETFs Win Fans Amid Market Volatility

I don't see the concern. The bullish side consists of stocks, the bearish side is a complex mix of shorting, put options, and credit default swaps, designed to behave like the same stocks moving in mirror opposite.

When it comes to taxes, these are short term trades, therefore your gains are taxed as regular income, not at capital gains rates.

The newer triples don't pay dividends yet, but the doubles have been paying dividends on both the bullish and bearish sides for quite a while.

I see no reason to treat these differently than you would any normal dividend paying stock.


On Jan 21 09:56 AM User 86999 wrote:

> People need to be aware of the K-1 complexity issues involved, when
> the tax time arrives. The prospectus is silent but SAI includes information
> of how the funds are PTP or QPTP, which should generate K-1. Unfortunately,
> the prospectus does not clearly provide the information on of the
> tax form vehicle used: i.e. whether they'll issue 1099, the normal
> tax document or the K-1. I am looking for some credible site/article
> that may have compiled such information on all the financially engineered
> ETFs. We know what financial engineering has already done to us,
> but transparency is still an issue.