Editor's note: Any and all references to time frames longer than one trading day are for purposes of market context only, and not recommendations of any holding time frame. Daily rebalancing ETFs are not meant to be held unmonitored for long periods. If you don't have the resources, time or inclination to constantly monitor and manage your positions, leveraged and inverse ETFs are not for you.

Few asset classes have been spared from the market’s recent volatility*. Whether it was stocks, commodities, or even the traditional safe-haven in bonds, the trade wars have led to wide price swings and breakdowns in previously established trends. One sector that has managed to weather the storm better than most has been gold mining stocks, and that’s largely thanks to gold prices trading near all-time highs. Can this trend continue, or will a massive liquidity event bring this sector back lower as well?

No Shortage of Luster for Miners

While the price of gold has been capturing headlines, shares of mining companies have steadily and quietly followed higher. Higher gold prices translate to higher revenue and earnings for many of these mining companies, and many of them have dramatically improved balance sheets compared to previous years.

Additionally, the latest inflation report from March came in below estimates, which is an important factor for the Federal Reserve when considering interest rate cuts. Rate cuts could be a major tailwind for mining stocks if the price of metals continues to surge.

In this scenario, Direxion’s Daily Gold Miners Index Bull 2X Shares (Ticker: NUGT) could see a nice rally. This fund seeks daily investment results, before fees and expenses, of 200% of the performance in the NYSE Arca Gold Miners Index*.

Below is a daily chart of NUGT as of April 10, 2025.

Source: TradingView.com

Candlestick charts display the high and low (the stick) and the open and close price (the body) of a security for a specific period. If the body is filled, it means the close was lower than the open. If the body is empty, it means the close was higher than the open.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate. An investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance quoted. For the most recent month-end performance go to Direxion.com/etfs. For standardized performance click here.

What if Earnings Disappoint?

If only it were so simple to rely on the price of gold and silver and potential easing from the Fed for higher prices in miners. The risks of an economic slowdown have surged to their highest level in years, partly due to a complete restructuring of the global trade system.

As a result, there are already disruptions in regular business operations for some of these companies, many of which are based internationally. While there have been some discussions surrounding exemptions on certain metals from tariffs, the upcoming earnings season will be key for the mining sector.

Some of the top holdings in these mining funds include Newmont Corporation (Ticker: NEM), Agnico Eagle Mines (Ticker: AEM), and Barrick Gold (Ticker: GOLD). Newmont is slated to report its results on April 23, while Agnico Eagle Mines follows on April 24. Barrick Gold is planning to announce their quarterly results on May 7. If any of these companies report large misses, or issue poor guidance, it could weigh on the mining sector.

Traders that are looking for some bearish price action in miners could find an opportunity with Direxion’s Daily Gold Minders Index Bear 2X Shares (Ticker: DUST), which seeks daily investment results, before fees and expenses, of 200% of the inverse performance of the NYSE Arca Gold Miners Index.

Below is a daily chart of DUST as of April 10, 2025.

Source: TradingView.com

Candlestick charts display the high and low (the stick) and the open and close price (the body) of a security for a specific period. If the body is filled, it means the close was lower than the open. If the body is empty, it means the close was higher than the open.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate. An investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance quoted. For the most recent month-end performance go to Direxion.com/etfs. For standardized performance click here.

*Definitions and Index Descriptions

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 866-476-7523 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.

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.

The NYSE Arca Gold Miners Index (GDMNTR) is a modified market capitalization weighted index comprised of publicly traded companies that operate globally in both developed and emerging markets, and the index provider defines as involved primarily in mining for gold and, to a lesser extent, in mining for silver. The Index will limit the weight of companies whose revenues are more significantly exposed to silver mining to less than 20% of the Index at each rebalance date. The Index may include small- and mid-capitalization companies and foreign issuers. One cannot directly invest in an index. The Funds do not invest directly in or directly short gold or gold futures contracts.

Direxion Shares Risks – An investment in a Fund involves risk, including the possible loss of principal. A Fund is non-diversified and includes risks associated with the Fund’s concentrating its investments in a particular industry, sector, or geography which can increase volatility. The use of derivatives such as futures contracts and swaps are subject to market risks that may cause prices to fluctuate over time.

Leverage Risk – Each Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. A total loss may occur in a single day. Leverage will also have the effect of magnifying any differences in the Fund’s correlation or inverse correlation with the Index and may increase the volatility of the Fund.

Daily Index Correlation Risk – A number of factors may affect the Bull Fund’s ability to achieve a high degree of correlation with the Index and therefore achieve its daily leveraged investment objective. The Bull Fund’s exposure to the Index is impacted by the Index’s movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to the Index at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to the Index increases on days when the Index is volatile near the close of the trading day.

Daily Inverse Index Correlation Risk – A number of factors may affect the Bear Fund’s ability to achieve a high degree of inverse correlation with the Index and therefore achieve its daily inverse leveraged investment objective. The Bear Fund’s exposure to the Index is impacted by the Index’s movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to the Index at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to the Index increases on days when the Index is volatile near the close of the trading day.

Gold and Silver Mining Company Risk – Gold and silver mining companies are highly dependent on the price of gold and silver bullion, respectively, and may be adversely affected by a variety of worldwide economic, financial and political factors.

Mining and Metal Industry Risk – Mining and metal companies can be significantly affected by international political and economic developments, energy conservation, the success of exploration projects, commodity prices, taxes and government regulations.

Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Market Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Other Investment Companies (including ETFs Risk), Cash Transaction Risk, Passive Investment and Index Performance Risk and for the Direxion Daily Gold Miners Index Bear 2X Shares, Shorting or Inverse Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund.
ALPS Distributors, Inc.