ETFs (exchange-traded funds) are increasingly being used by investors to diversify their holdings. WEBL offers 3x daily leveraged exposure to a market-cap-weighted index of the top and most liquid Internet firms in the United States.
Our guide will teach you how to invest in the WEBL ETF. Let’s review the quick history, pros and cons, future outlook and the steps required to buy Direxion Daily Dow Jones Internet Bull 3x Shares ETF.
Quick Direxion Daily Dow Jones Internet Bull 3x Shares ETF History
WEBL offers 3x daily leveraged exposure to a market-cap-weighted index of the biggest and the most liquid Internet firms in the United States. WEBL is a 3x leveraged daily access to the Dow Jones Internet Composite Index that is monitored conservatively. The index includes the 40 largest and most frequently traded internet technology and commerce businesses in the United States.
The Daily Dow Jones Internet Bull (WEBL) seeks daily investment outcomes of 300 percent, or 300 percent of the inverse (or opposite) of the Dow Jones Internet Composite Index, before fees and costs. The Index Provider selects companies that generate the bulk of their revenue through tools such as advertising, cloud computing, or digital marketing.
The Good and the Bad of Direxion Daily Dow Jones Internet Bull 3x Shares ETF
Owning stock or shares in an exchange traded fund provides a number of advantages. Here are some of the advantages and disadvantages of purchasing the Direxion Daily Dow Jones Internet Bull 3X Shares ETF.
Pros of Owning Direxion Daily Dow Jones Internet Bull 3x Shares ETF
- Direxion Daily Dow Jones Internet Bull 3x Shares ETF has been one of the top performing ETFs throughout the country this year and is up 25.67% as of June 18th, 2021.
- Direxion Daily Dow Jones Internet Bull 3x Shares ETF is composed of some of the most lucrative tech-companies in the United States that have consistently performed well.
- The daily trading prices of this ETF has been consistently rising for the past 10 months. This ETF trades an average daily volume of $3.16B shares, which is significantly higher than most other ETFs.
Cons of Owning Direxion Daily Dow Jones Internet Bull 3x Shares ETF
- When interest rates are high, technology stocks tend to do poorly.
- Leveraged and inverse ETFs seek daily leveraged investing objectives, making them riskier than non-leveraged alternatives.
- The IT industry enjoyed a year of success in 2020, but 2021 is shaping up to be the year of cyclical industries.
This stock builds its portfolio using derivatives like futures and swaps. It invests in firms with a diverse market capitalization and invests in both growth and value equities. Direxion Daily – Direxion Shares ETF Trust Dow Jones Internet Bull 3x Shares is based in the United States and was founded on November 7, 2019.
Stocks in the technology sector, particularly those related to the Internet, have been performing well. The industry’s earnings growth potential has also been optimistic. A total of 36,347 shares are traded on a daily basis for this commodity. With a 52-week range of $33.39 to $98.52, this stock previously closed at $78.40.
WEBL has a 24.66% YTD change as of June 17th and 122.52% change over the last year. This fund has 1 Million shares outstanding and an Average P/E Ratio of $45.37.
Steps to Buy Direxion Daily Dow Jones Internet Bull 3x Shares ETF
To acquire an ETF, you must first select a brokerage, establish a trading account, research the ticker symbol, and then begin purchasing shares.
Step 1: Select the Brokerage
An online brokerage account may be used to purchase Direxion Daily Dow Jones Internet Bull 3X Shares. The most prominent online brokerages giving access to the US stock market are WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, and Robinhood.
Step 2: Open the Trading Account & Deposit Funds
To buy an ETF, you’ll need to first open a trading account and make your first initial deposit. With a full-service account, you’ll have access to a financial advisor who can help you. You should compare the features and platforms of each broker.
If you’re a new trader, it’s a good idea to work with a broker who offers a variety of educational resources.
Step 3: Search for the Direxion Daily Dow Jones Internet Bull 3x Shares (WEBL)
The ticker symbol for the ETF you want to buy must be entered. The ticker code “WEBL” stands for Direxion Daily Dow Jones Internet Bull 3x Shares, which trades on the New York Stock Exchange (NYSE) ARCA.
Step 4: Purchase Direxion Daily Dow Jones Internet Bull 3x Shares
Brokers will have a “deal ticket” at the bottom of each page where you may place your order. You’ll enter the symbol and the number of shares you want to buy on the broker’s order form.
You can buy as many shares as you like with a market order. Or you can use a limit order to defer the purchase until the stock reaches a specified price.
Should You Buy Direxion Daily Dow Jones Internet Bull 3x Shares ETF?
Following a dismal first quarter, equities ETFs in the United States have started to rise. The upward trend is expected to continue in the months ahead. The loosening of regulations in some industries and regions of the United States has sparked demand. This is expected to boost economic development.
As a result of the bullishness in the stock market, there has been a surge in demand for leveraged ETFs, as investors have attempted to make large returns in a short period of time.
Investors can benefit from larger returns in a shorter period of time. This is because of the compounding impact of ETFs, as long as the trend stays positive. If you would like to invest in ETFs then you should consider contacting a financial advisor.