Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the Direxion Daily 7-10 Year Treasury Bull 3x Shares ETF (NYSE: TYD ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Direxion Daily 7-10 Year and see what CAPS investors are saying about the ETF right now.
Direxion Daily 7-10 Year facts
|Total Net Assets
||Seeks daily investment results of 300% of the performance of the NYSE 7-10 Year Treasury Bond Index. Bonds eligible for inclusion must be: U.S. Treasury Bonds; bullet or callable issues with fixed coupon payments; denominated in U.S. dollars; and have a maturity of 7-10 years at issuance.
|Year-to-Date / 1-Year / 3-Year Returns
||6% / 10.5% / 22.2%
||ProShares Ultra 7-10 Year Treasury
Direxion Daily 20+ Year Treasury Bull 3x
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 91% of the 152 members who have rated Direxion Daily 7-10 Year believe the ETF will underperform the S&P 500 going forward.
Just last month, one of those Fools, All-Star TerryHogan, succinctly summed up the bear case for our community:
In 1986, Sammy Hagar thought that he could have the "Best of Both Worlds." With this ETF, you can have the worst of both worlds -- the volatility induced degradation of a leveraged ETF, combined with the crappy yield of a bond fund. We'll throw in [a 0.95% expense ratio] for free!
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 the TrackPoisedTo CAPS account.