1-Star ETFs Poised to Plunge: Direxion Daily Developed Markets Bear 3x?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the Direxion Daily Developed Markets Bear 3x Shares (NYSE: DPK  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Direxion Daily Developed Markets Bear 3x and see what CAPS investors are saying about the ETF right now.

DPK facts

Inception December 2008
Total Net Assets $15.1 million
Investment Approach Seeks daily investment results of 300% of the inverse (or opposite) of the performance of the MSCI EAFEA Index. The index is designed to measure developed market equity performance, excluding the U.S. and Canada.
Expense Ratio 0.95%
Year-to-Date / 1-Year / 3-Year Return (41.4%) / (57.6%) / (38.3%)
Alternatives ProShares UltraShort S&P 500
Direxion Daily Small Cap Bear 3x Shares
Direxion Daily Financial Bear 3x Shares

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 53% of the 547 members who have rated Direxion Daily Developed Markets Bear 3x believe the ETF will underperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star TerryHogan, succinctly summed up the bear case for our community: "I'm bullish in the long-term on developed markets, and I also think volatility isn't going anywhere fast, so this 3X Bear ETF is an easy [underperform] pick. It will degrade with the volatility of time, and with the gradual increase of the market."

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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