DRIP.P Breaks Through 52-Week High at $15.505 Amid Energy Sector Volatility
1min read The Direxion Daily S&P Oil & Gas Exploration & Production Bear 2X Shares (DRIP.P) is an equity ETF designed to provide 2x inverse daily exposure to an equal-weighted index of the largest oil and gas exploration and production companies in the United States. The fund operates within the energy sector and serves investors looking to hedge against declines in the oil and gas market. Recently, the ETF has experienced significant selling pressure, reflected in the net fund flows, which indicate a total outflow of approximately $900,432.36 from standard orders, $729,783.50 from block orders, and $600,850.60 from extra-large orders.
As of today, DRIP.P has reached a new 52-week high of 15.505. The rally in the ETF’s price can be attributed to the ongoing volatility in the energy sector, particularly as oil prices have faced downward pressure, prompting investors to seek inverse exposure through DRIP.P.
Ask Aime: What are the reasons behind the significant increase in the price of Direxion Daily S&P Oil & Gas Exploration & Production Bear 2X Shares (DRIP.P) and how might this affect the energy sector's investment strategy?
From a technical perspective, DRIP.P is currently showing signs of being overbought, as indicated by the RSI (Relative Strength Index) analysis. This could suggest that the ETF may be due for a pullback or consolidation in the near term, as it trades at elevated levels. Additionally, there are no indicators suggesting a golden cross or dead cross, which may point to a lack of significant trend changes.
| ETF Code | Expense Ratio | Leverage Ratio | AUM |
| BSCU.O | 0.1 | 1.0 | $2B |
| CALI.O | 0.2 | 1.0 | $68M |
| BSJU.O | 0.42 | 1.0 | $109M |
| APMU.P | 0.37 | 1.0 | $164M |
| BSMV.O | 0.18 | 1.0 | $100M |
| BND.P | 0.03 | 1.0 | $129B |
| CLOZ.P | 0.5 | 1.0 | $763M |
| CEMB.B | 0.5 | 1.0 | $392M |
| BKHY.P | 0.22 | 1.0 | $350M |
| BSCX.O | 0.1 | 1.0 | $545M |
Investing in DRIP.P presents both opportunities and challenges. On one hand, the ETF provides a viable strategy for investors looking to profit from potential downturns in the oil and gas sector. On the other hand, the high expense ratio of 1.09% and the inherent volatility associated with leveraged ETFs pose risks that investors should carefully consider before entering positions.
