DRIP: Looking At The Structure And Suitability Of This Leveraged Inverse ETF

2026-01-13 10:33:54 ET

The Direxion Daily S&P Oil & Gas Exploration & Production Bear 2X Shares ETF ( DRIP ) is a leveraged exchange-traded fund that aims to deliver double the inverse of the daily performance of the S&P Oil & Gas Exploration & Production Select Industry Index. This is the same index that is tracked by the State Street SPDR S&P Oil & Gas Exploration & Production ETF ( XOP ), so we should expect DRIP to deliver double the daily performance of XOP in the opposite direction. In other words, on a day in which XOP rises by 1%, we should expect DRIP to decline by about 2%, and vice versa. It is important to keep in mind, however, that DRIP is structured in a way that it will only deliver double the inverse performance of XOP on a daily basis. The fund is not designed to be held overnight, and its performance might not be what would be expected if it is held for more than one day. We can see this quite clearly by looking at the performance of both XOP and DRIP over the one-year period that ended on January 9, 2026:

Read the full article on Seeking Alpha

For further details see: