Benzinga
Published Jul 29, 2022 21:37
Updated Jul 29, 2022 22:10
Looking To Trade Roblox, Microsoft, Apple, Lucid Stock Bullishly? Here's A 2X Leveraged ETF
Direxion Daily Select Large Caps & FANGs Bull 2X Shares (NYSE: FNGG) popped almost 5% after the market opened Friday, but a move higher was hampered by the general market, which may be in need of consolidation because the S&P 500 has soared 5% over the last three trading days.
Many of the large cap stocks held in the ETF have traded significantly higher over the last few weeks, soaring up from their June 16 lows. FNGG has followed suit, surging 37% from the June 16 low of $4.01 to trade at about $5.60 on Friday.
FNGG is a double leveraged fund that is designed to outperform a number of highly traded growth stocks. The ETF tracks stocks in the technology, information technology, communication services and consumer discretionary sectors.
FNGG’s largest four holdings are Roblox Corporation (NYSE: RBLX), weighted at 6.11%; Microsoft Corporation (NASDAQ: NASDAQ:MSFT), weighted at 5.99%; Alphabet (NASDAQ:GOOGL), Inc Class A (NASDAQ: GOOGL), weighted at 5.82%; and Lucid Group, Inc (NASDAQ: LCID), weighted at 5.74%.
The ETF also holds Apple, Inc (NASDAQ: NASDAQ:AAPL), Meta Platforms, Inc (NASDAQ: META) and Netflix, Inc (NASDAQ: NASDAQ:NFLX).
It should be noted that leveraged ETFs are meant to be used as a trading vehicle as opposed to a long-term investment by experienced traders. Leveraged ETFs should never be used by an investor with a buy and hold strategy or those who have low risk appetites.
FNGG offers returns of 200% compared to its benchmark index for a single day only and is not meant to be held for longer than that.
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The FNGG Chart: FNGG has been trading in a fairly consistent uptrend within two parallel lines, which has settled the ETF into a rising channel pattern on the daily chart. A rising channel pattern is considered to be bullish until a stock or ETF drops through the lower ascending trendline of the pattern.
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