SPXL: Long-Term Potential But Tread Carefully

Summary

• SPXL is an ETF aiming to deliver 3 times the daily performance of the S&P 500 index through swaps and futures.
• The fund is highly volatile and not suitable for risk-averse investors, but may be useful for those with a short-term bullish market bias.
• However, SPXL can also be considered by some for long-term investing with the potential of market-beating returns. It's critical to make note of potential risks, however.

ktasimarr

Thesis

Direxion Daily S&P 500 Bull 3X Shares (NYSEARCA:SPXL) is a possible way to gain enhanced exposure to the market in a way that will amplify its performance in the short term. However, I also consider it a potentially attractive option

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.