One Fund Seeking to Be the 'CURE' to Market Volatility

The Direxion Daily Health Care Bull 3X Shares ETF, trading under the ticker CURE, offers investors three times exposure to healthcare companies for one day. It has outperformed the S&P 500, returning over 20% this year. CURE is a leveraged fund used for short-term trading, holding the XLV healthcare sector ETF and using derivatives to achieve its exposure. With $170 million in assets, it has a high expense ratio of 95 basis points. Despite its performance, CURE is considered risky due to its heavy leverage and daily resetting, receiving a red light in the Bloomberg Intelligence Traffic Light system.

What is the primary use of the CURE ETF?

• Short-term trading

• Retirement savings

• Long-term investment

• Dividend income

Which ETF does CURE hold to provide exposure to healthcare companies?

• SPY

• QQQ

• DIA

• XLV

Which of the following companies is NOT a member of the XLV ETF?

• United Health

• Merck

• Pfizer

• Tesla

What is the expense ratio of the CURE ETF?

• 120 basis points

• 95 basis points

• 50 basis points

• 75 basis points

Why does CURE receive a red light in the Bloomberg Intelligence Traffic Light system?

• Low asset value

• High expense ratio

• Poor market performance

• Heavy leverage and daily resetting