Oil & Gas Exp. & Prod. Bull and Bear 2X ETFs | GUSH DRIP (2024)

FAQs

Is Drip a good ETF? ›

DRIPs offer greater convenience and a handy way to grow your investments effortlessly but they can present some issues for ETF shareholders because of the variability in programs. Some brokerage firms offer automatic dividend reinvestment but they only allow the purchase of full shares.

The DRIP Exchange Traded Fund (ETF) is provided by Direxion. It is built to track an index: S&P Oil & Gas Exploration & Production Select Industry Index.

A DRIP is a dividend reinvestment plan whereby cash dividends are reinvested to purchase more stock in the company. DRIPs use a technique called dollar-cost averaging (DCA) intended to average out the price at which you buy stock as it moves up or down.

GUSH's 7th split took place on August 28, 2023. This was a 4 for 1 split, meaning for each share of GUSH owned pre-split, the shareholder now owned 4 shares.

Although Schwab doesn't charge fees or commissions in DRIP, there is still a tax scenario to consider. If a DRIP is active in a non-retirement account, the dividend income is a taxable event and will be reported on your 1099-DIV as if it was received in cash.

Because shares are automatically purchased, investors may end up investing at a time when prices are on the higher end. Con: DRIP plans could throw your portfolio off balance. Overexposure to a particular company could hurt you in the long-run if your portfolio doesn't have a good mix of assets.

A significant benefit of a DRIP is that it enables you to buy more shares and build wealth over time. When you reinvest your dividends, your investment grows, and you earn even more dividends the next time—and so on.

ETF managers also have the option of reinvesting investors' dividends into the ETF rather than distributing them as cash. The payout to shareholders is accomplished through reinvestment in the ETF's underlying index on their behalf.

Simply purchase shares and fractional shares that reflect the dollar value of your dividend payment. If no fractional shares are available, hold onto the money until you have enough to buy whole shares. This DRIP process is more labor intensive, but you can still benefit from compound returns and dollar-cost averaging.

Drip gas, so named because it can be drawn off the bottom of small chambers (called drip chambers or drips) sometimes installed in pipelines from gas wells, is another name for natural-gas condensate, a naturally occurring form of gasoline obtained as a byproduct of natural gas extraction.

What is the discount on drip stocks? ›

DRIPs offer shareholders a way to accumulate more shares without having to pay a commission. Many companies offer shares at a discount through their DRIP from 1% to 10% off the current share price.

Shares sold through DRIPs are taken out of the company's share reserve, and cannot be sold on the market. Therefore, when investors are ready to unload their DRIP shares, they must sell them back to the issuing company. These transactions do not impact the stock price of the shares in the market.

As a result of the reverse stock split, each UVXY Share will be converted into the right to receive 0.2 (New) ProShares Ultra VIX Short-Term Futures ETF Shares. The reverse stock split will become effective before the market open on April 11, 2024.

The 1-for-70 reverse stock split will automatically combine and convert seventy current shares of the Common Stock into one issued and outstanding new share of Common Stock.

GUSH is up over 100% in the last few months thanks to its added dose of leverage. The ETF seeks daily investment results of 200% of the daily performance of the S&P Oil & Gas Exploration & Production Select Industry Index.

A significant benefit of a DRIP is that it enables you to buy more shares and build wealth over time. When you reinvest your dividends, your investment grows, and you earn even more dividends the next time—and so on.

You are compounding earnings. One of the most significant advantages of dividend reinvestment is that it allows you to buy more shares and build wealth over time. As you reinvest your dividends, the investment grows, and you earn even more dividends—and so on. You can lower risk through dollar-cost averaging.

In contrast, the riskiest ETF in the Morningstar database, ProShares Ultra VIX Short-term Futures Fund (UVXY), has a three-year standard deviation of 132.9. The fund, of course, doesn't invest in stocks. It invests in volatility itself, as measured by the so-called Fear Index: The short-term CBOE VIX index.