Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

Ease S&P 500 Uncertainty Fears With These ETFs

BY | ETF Database
02/03/2025 | 755 VIEWS
With a new U.S. president at the helm and a Fed that’s getting mixed signals from the economy, uncertainty abounds. Traders can ease those fears with leveraged and inverse exchange-traded funds (ETFs) from Direxion’s product suite.As noted in a Reuters article, a chart representing economic and monetary policy uncertainty revealed the elevated levels of both near the end of 2024. With the Fed on a rate-cutting path, that strategy was challenged with sticky inflation amid weaker consumer sentiment. As is typically the case when a new Commander in Chief takes charge of the world’s largest economy, U.S. president Donald Trump’s victory also brought forth its own set of question marks. The potential for tariffs, given Trump’s stance in the past, stoked thoughts of higher and persistent inflation. At the same time, proposed tax cuts could also spur the economy higher, which could put rate cuts in jeopardy while lightening the load of consumer prices. All in all, it’s difficult to gauge what exactly the S&P 500 will do with new presidential policy agendas in place. “Measures of policy uncertainty have spiked since Donald Trump’s election win in November,” Reuters said. “But the data since December remains helpful to the bulk of Fed officials who feel the job market and the economy overall are in healthy shape, with inflation expected to ebb further in coming months.”ETF Trading Tools to UseIf inflation ebbs and the S&P 500 responds favorably toward the upside, traders who want triple their exposure to the index will want to use the Direxion Daily S&P 500 Bull 3X Shares ETF (SPXL B+). However, in the event of further downside amid stubborn inflation, taking the other side, with the Direxion Daily S&P 500 Bear 3X ETF (SPXS B+), is the ideal countermove. Additionally, the tech sector comprises a large portion of the S&P 500. Given this, its performance can sway the movements in the index. This allows traders to capitalize on more concentrated plays in the tech industry. That said, traders will want to look at the Direxion Daily Technology Bull 3X ETF (TECL A-) when bullishness abounds. On the other end of the spectrum, they can use the Direxion Daily Technology Bear 3X ETF (TECS B+). Both funds provide exposure to 300% of the daily performance of the Technology Select Sector Index, which is provided by S&P Dow Jones Indices and includes domestic companies from the technology sector. For more news, information, and analysis, visit the Leveraged & Inverse Channel.

More Commentary

Top Performing Leveraged/Inverse ETFs: 03/30/2025
BY | ETF Database
04/02/2025 | 6 VIEWS
Top Active ETF TCAF Adds More Than Half a Billion in 1 Month
BY | ETF Database
04/02/2025 | 43 VIEWS
Sell on the Pop Prospects: April 2 Edition
BY | ETF Database
04/02/2025 | 5 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.