To call the triple-leverage financial ETF of the Direxion Financial Bull 3X Shares (NYSE: FAS) volatile would be perhaps the understatement of the year. It has become the day trading instrument of choice for those who trade financial stocks because it has such a low share price and because its triple-leverage adds that much more volatility. What is interesting is that this ETF is not just a bank ETF as it tracks the Russell 1000 Financial Services Index. While it aims to diversify to all financial firms in that index with more than 200 components last year, it looks like the four top dogs of JP MORGAN CHASE & CO. (NYSE: JPM), BANK OF AMERICA CORP. (NYSE: BAC), GOLDMAN SACHS GROUP (NYSE: GS), and WELLS FARGO & CO (NYSE: WFC) may now more than 20% of the weighting.
We won’t hang a hat on a firm numbers because this changes and because there have been many questions over how the triple-leverage is calculated throughout the day, particularly when you account for the ETF counterpart of the Direxion Financial Bear 3X Shares (NYSE: FAZ). READ OUR STORY: How does a 3x ETF gain 3 times the index performance But the ETF put in a new multi-month high today. It was only two months ago that this was on the verge of being perhaps the first ETF to see a reverse stock split because the price went so low. This was under consideration as the price had dipped under $3.00 per share.