The stock price for Tesla Motors (NasdaqGS:TSLA) has been a
rocket ship, but one ETF has more zip.
The Direxion Daily Gold Miners Bear 3x Shares (NYSEARCA:DUST) is
beating the year-to-date (YTD) performance of Tesla by more than
100%* and has posted a gain of more than 250%.
The bear market in gold (NYSEARCA:GLD) and silver (NYSEARCA:SLV)
prices has crushed mining stocks, which has resulted in mammoth
gains for bears.
DUST aims for triple daily inverse or opposite performance to
mining stocks (NYSEARCA:XME). That means if mining stocks fall by
1% in a single trading session, DUST should be up 3% or close to
The relative performance differential between mining stocks and
the S&P 500 (NYSEARCA:SPY) is especially staggering. While the
S&P is ahead by 12.53% YTD, the Market Gold Miners ETF
(NYSEARCA:GDX) is down more than 40%. Also, gold miners have
substantially underperformed physical bullion.
DUST is an ETF that's familiar to our readers.
from February 14, we warned about deep trouble in the precious
metals market and a high profit opportunity on the short side.
"A double digit slide for gold would likely translate into a
20%+ loss in mining stocks. This scenario offers some big upside
potential for bears."
Since then, DUST has surged more than 170% in value.
ETFs that use 200% (2x) and 300% (3x) are best used as short
term trading instruments, rather than buy-and-hold investments.
Our latest video, "
Tips for Making Short and Leveraged ETFs Working
," explains some of the key differences between these types of
funds versus ETFs that don't attempt to magnify
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*Through the market close of May 17, 2013