DPST: This Isn't The Time For A Levered Regional Bank ETF
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Ian BezekInvesting Group LeaderFollow5ShareSavePlay(10min)Comment(1)SummaryI rate Direxion Daily Regional Banks Bull 3X Shares ETF as a 'Sell' due to structural risks and an unconvincing sector outlook for 2026.The fund's leverage amplifies the sector's already considerable volatility, leading to persistent underperformance versus unlevered regional bank ETFs.DPST may suit short-term traders, but I see little justification for long-term portfolio inclusion. georgeclerk/iStock via Getty Images The Direxion Daily Regional Banks Bull 3X Shares ETF (DPST) is a leveraged fund that gives investors turbocharged exposure to the U.S. regional banking sector. DPST experienced a sharp drop back in April with theThis article was written byIan Bezek23.31K FollowersFollowIan Bezek is a former hedge fund analyst at Kerrisdale Capital. He has spent the decade living in Latin America, doing the boots-on-the ground research for investors interested in markets such as Mexico, Colombia, and Chile. He also specializes in high-quality compounders and growth stocks at reasonable prices in the US and other developed markets. Ian leads the investing group Ian's Insider Corner. Features of the group include: the Weekend Digest which covers everything from new ideas to updates on current holdings and macro analysis, trade alerts, an active chat room, and direct access to Ian. Learn More.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.