If you’re thinking about buying a new small cap ETF, you may want to consider GUSH Stock. It’s a leveraged ETF with a small cap tilt. This ETF can be volatile, but it’s also one of the largest issuers of leveraged ETFs. While these ETFs can produce big short-term gains, they can also be ruinous if you hold them for too long. The company recently announced a reverse split for GUSH, as well as Direxion Daily Energy Bull 3x Shares (ERX), and GAS.
GUSH is a leveraged ETF
GUSH is a leveraged ETP that tracks the price of crude oil. It applies leverage to gain twice the daily return of the underlying index. There are two types of GUSH: the short and the long versions. During the recent downturn, Gush Stock has lost 98 percent of its value. This volatility could make the fund look more attractive than it is. However, the downside of a leveraged ETF is that it’s more expensive to trade.
GUSH seeks to achieve a return of 200% of the daily value of the S&P Oil & Gas Exploration Investing Select Industry Index by using over-the-counter derivatives. The XOP fund, which tracks the same index without using leverage, does not have this objective. It is important to remember that leverage is a double-edged sword: it increases risk during downturns while reducing performance during trends.
GUSH is a small-cap tilt
The GUSH index has shown a serious small-cap tilt over the past quarter. Investors such as Icon Advisers Inc. Co., U S Global Investors Inc., and Simplex Trading LLC have purchased the stock in recent months. Moreover, the stock has recently attained a Buy & Hold Grade, as well as an Industry Rank of “D”. However, investors should be aware that GUSH is a risky small-cap tilt stock, with a high level of market risk.
The risk of GUSH’s market exposure is high, given its serious small-cap tilt. Moreover, the geared fund charges a high trading fee. The largest concern for investors, however, is the trading costs. Although GUSH has an ample trading volume, the spreads can be fairly high. As a result, investors may want to avoid GUSH unless they have a very large budget.
GUSH is volatile
GUSH stock has a high volatility level and follows its index at twice the speed. Many swing and day traders are watching GUSH stock. The index tracks six out of seven categories, including exploration & production, refining & marketing, and integration. The company’s Direxion Fund Team manages the stock. The company’s stock is volatile, but there are good reasons to be wary of this stock.
When looking at the volatility of a stock, keep in mind that there are many factors to consider. First of all, look at the price history. Is the volatility recent? If so, how much does it affect the company’s performance? The chart below shows GUSH’s volatility over the past decade. High volatility is not necessarily a bad thing. Volatility helps stocks to grow over time. If there’s no volatility, the price won’t change much, and no one will profit. Volatility is also important to monitor the direction of price changes.
GUSH is a buy
The stock is currently a buy, and its price is trading at a low relative to its recent volatility. This means it is likely to make a move higher in the days ahead. In addition, GUSH’s momentum indicator is positive. The company is moving upwards, so a move above the zero level would be an indication that the stock is about to move higher. In addition, the GUSH option chain shows calls and puts on the name.
If you’re looking to make money in a volatile and risky sector, GUSH is a good option. This leveraged exchange-traded fund (ETF) gives sophisticated investors the opportunity to earn as much as two times the daily return of the S&P Oil & Gas Index. However, GUSH is a high-risk stock, and should only be used by sophisticated traders with a short time horizon. GUSH has experienced significant pullbacks, including one that fell -50%. However, analysts believe that this uptrend will continue. You can buy GUSH via a call position, which is a more conservative approach than buying the ETF outright.
