Active Traders Confident Generating Returns in Bull and Bear Markets
NEW YORK—March 7, 2023 – The vast majority of active traders (80%) say they are knowledgeable about exchange-traded funds (ETFs), and feel confident they have the information (93%) and tools (92%) to understand the risks when making trading decisions, according to a new Direxion Trader Sentiment Survey conducted by the Harris Poll.
The survey was conducted in October 2022, among 500 U.S.-based active traders who make their own trading decisions, trade within their account at least monthly, and have at least $25,000 in investible assets. Nearly half of all active traders (49%) currently hold ETFs in their portfolio, with 80% - regardless of whether or not they trade ETFs - stating they are knowledgeable about ETFs.
When it comes to making trading decisions, active traders are monitoring traditional media (92%) and social media (77%) for important developments. An overwhelming majority of active traders (82%) were confident when making informed decisions about trading ETFs.
“It’s a positive sign that ETFs have become integral to so many active traders’ strategies, and that so many have done their homework to understand these investment vehicles,” said Direxion Chief Marketing Officer Andy O’Rourke. “Since the firm’s inception, Direxion has made it a top priority to educate traders through our Education and Insights center, and there’s still work to be done across the industry to educate an even broader swath of traders in a diverse marketplace.”
Eighty nine percent of the 500 active traders surveyed believe they can generate returns trading in both bull and bear markets. However, Gen Z/Millennial traders (55%) proved more likely than Gen X (47%) or Boomers/Silent (38%) generation traders to expect it will take 12 months or less for the S&P 500 index to return to all-time highs, an overwhelmingly positive outlook on the S&P 500 over the next year.
“These results confirm active traders in 2022 are in a better position than previous generations to take advantage of opportunities,” said Direxion Managing Director and Head of Sales Ed Egilinsky. “Active trading used to be more heavily skewed to older generations due to the requirement of accumulated wealth. There’s more active trading across a broader demographic now since markets are more accessible. That access necessitates education, and validates our commitment to continually educating active traders.”
Read the full survey report here.
The research was conducted online in the U.S. by The Harris Poll on behalf of Direxion among 500 18+, U.S. Residents who trade/invest frequently with at least $25K in investable assets. The survey was conducted 21st OCT – 31st OCT 2022.
Raw data were not weighted and are therefore only representative of the individuals who completed the survey.
Respondents for this survey were selected from among those who have agreed to participate in our surveys. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within + 4.4 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest.
All sample surveys and polls, whether or not they use probability sampling, are subject to other multiple sources of error which are most often not possible to quantify or estimate, including, but not limited to coverage error, error associated with nonresponse, error associated with question wording and response options, and post-survey weighting and adjustments.
Direxion equips investors who are driven by conviction with ETF solutions built for purpose and fine-tuned for precision. These solutions are available for a broad spectrum of investors, whether executing short-term tactical trades, or investing in thematic strategies. Direxion’s reputation is founded on developing products that precisely express market perspectives and allow investors to manage their risk exposure. Founded in 1997, the company has approximately $23.0 billion in assets under management as of December 31, 2022. For more information, please visit www.direxion.com.
There is no guarantee that the Funds will achieve their investment objectives.
For more information on all Direxion Shares ETFs, go to www.direxion.com, or call us at 866.301.9214.
Leveraged and Inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying index over periods longer than one day. They are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk and who actively manage their investments.
An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 866-716-0735 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.
Direxion Shares ETF Risks - An investment in the ETFs involves risk, including the possible loss of principal. The ETFs are non-diversified and include risks associated with concentration that results from an ETF’s investments in a particular industry, sector or company, which can increase volatility. The leveraged and inverse ETF utilize derivatives, such as futures contracts and swaps which are subject to market risks that may cause their price to fluctuate over time. The leveraged and inverse ETFs do not attempt to, and should not be expected to, provide returns which are a multiple of the return of their respective index or underlying security for periods other than a single day. The leveraged and inverse ETFs may also subject to leverage, correlation, daily compounding, market volatility and risks specific to an industry, sector or company. The non-leveraged ETFs are subject to certain risks, including imperfect index correlation and market price variance, which may decrease performance. The non-leveraged ETFs may invest in a relatively small number of issuers and, as a result, be subject to greater risk of loss with respect to its portfolio securities. The non-leveraged ETFs may experience greater fluctuation in its net asset value as compared to other investments. The non-leveraged ETFs may be appropriate for investors with a long-term investment time horizon, who primarily seek capital growth, and who are able to tolerate periods of prolonged price declines. Please read each ETF’s prospectus for a more complete description of the investment risks.
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