About Jnug and Jnug Trading
The Direxion Junior Daily Gold Miners Index Bull (JNUG) is a leveraged ETF designed to return three times the performance of the MVIS Global Junior Gold Miners Index on a day to day basis. However, always keep in mind that there is no guarantee the funds will meet their stated investment objective. As a levered product, NUGT is perceived as a short-term tactical instrument. The fund rebalances daily. Over more extended periods, returns can vary significantly from 3x exposure to its underlying Index.
The MVIS Global Junior Gold Miners Index tracks the performance of foreign and domestic companies that generate or have the potential to generate at least half of their revenues from gold mining and/or silver mining or have at least half of their assets related to gold mining and/or silver mining. Additionally, they can hold real property or have mining projects with the potential to produce at least half of the revenue from gold or silver mining when developed or primarily invest in gold or silver. The term "junior" refers to the size of these companies, which are considered to be small-cap size, as defined by the index provider.
What is a leveraged ETF?
A leveraged exchange-traded fund (ETF) defines a type of financial product created for tracking an underlying index at higher rates of return. Such instruments can offer returns as high as two or three times the returns of a traditional ETF but at increased risks.
Leveraged ETFs cover the Underlying Index's securities and include derivatives of the securities and the Index itself. These derivatives can be options, forward contracts, swaps, and futures. In other words, leveraged ETFs can be tied to different industry sectors, commodities, or currencies, just as regular ETFs can be.