ERY VS IXC
Exchange-Traded Funds (ETFs) have become a cornerstone in modern investment portfolios, providing investors with a convenient way to diversify their holdings. In this piece, we'll delve deep into a side-by-side comparison of two notable ETFs: ERY (Direxion Daily Energy Bear 3X Shares) and IXC (iShares Global Energy ETF). We'll touch upon their tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.
ERY VS IXC: Overview
ERY and IXC, though both related to the energy sector, have distinct investment approaches. ERY is a leveraged ETF aiming to provide thrice the inverse daily performance of the Energy Select Sector Index. In contrast, IXC seeks to track the investment results of an index composed of global equities in the energy sector. These fundamental differences in their objectives lead to varied exposures and potential risks, which we'll discuss in detail below.
ERY VS IXC: Sectors and Top Holdings
While ERY is a bearish bet against the energy sector, IXC provides a more traditional exposure to global energy companies. ERY's holdings are primarily financial derivatives that help achieve its leveraged inverse goals. On the other hand, IXC's top holdings include energy giants like Exxon Mobil, Chevron, and Royal Dutch Shell. Recognizing the sectors and primary holdings of these ETFs is crucial for investors to align their investments with their risk appetite and financial objectives.
ERY overlap ERY VS IXC
ERY VS IXC: Capitalization and Strategy
ERY, being a leveraged ETF, is inherently more volatile and is typically used by traders for short-term bets against the energy sector. IXC, with its focus on global energy companies, has a broader asset under management (AUM) and is often preferred by investors seeking long-term exposure to the energy sector. The contrasting capitalization and strategies of these ETFs offer different return potentials and risk levels, necessitating thorough research before investment.
ERY VS IXC: Tracking and Exposure
ERY's primary goal is to offer investors a chance to capitalize on potential downturns in the energy sector, with its 3x inverse daily performance. IXC, meanwhile, provides exposure to a diversified set of global energy companies, tracking an index that represents such firms. Grasping the distinct tracking and exposure mechanisms of these ETFs is vital for investors to ensure they're making informed decisions aligned with their investment horizon and risk tolerance.
Conclusion
Both ERY and IXC present unique investment opportunities within the energy sector, each catering to different investor profiles and goals. For those keen on gaining a deeper understanding of the holdings, correlations, overlaps, and other insights of these ETFs, ETF insider is an invaluable resource.
ERY ETF issuer
ERY ETF official page
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