KLNE ETF — Holdings & Analysis

The Direxion Daily Global Clean Energy Bull 2X Shares (KLNE) offers aggressive, leveraged exposure to global clean energy companies.

With approximately $0.00B in assets under management and a high expense ratio of 1.33%, KLNE seeks to magnify the daily performance of an index focused on companies tied to the clean energy business. The fund achieves this through investments in financial instruments like swap agreements and ETFs, primarily the iShares Global Clean Energy ETF (ICLN), making it a highly concentrated and specialized investment vehicle.

Direxion Daily Global Clean Energy Bull 2X Shares (KLNE) ETF — Price, Holdings & Analysis

The Direxion Daily Global Clean Energy Bull 2X Shares (KLNE) offers aggressive, leveraged exposure to global clean energy companies. With approximately $0.00B in assets under management and a high expense ratio of 1.33%, KLNE seeks to magnify the daily performance of an index focused on companies tied to the clean energy business. The fund achieves this through investments in financial instruments like swap agreements and ETFs, primarily the iShares Global Clean Energy ETF (ICLN), making it a highly concentrated and specialized investment vehicle.

ETF Overview

The index is designed to track the performance of companies from developed markets whose economic fortunes are tied to the global clean energy business. The fund invests at least 80% of its net assets in financial instruments, such as swap agreements, securities of the index, and ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or to ETFs that track the index. It is non-diversified.

KLNE aims to provide twice the daily investment results of an index that tracks global clean energy companies. This is achieved by investing at least 80% of its net assets in financial instruments such as swap agreements, securities of the index, and ETFs that track the index, notably holding 85.36% of its portfolio in iShares Global Clean Energy ETF (ICLN). The fund's sector allocation is heavily weighted towards Utilities (58.7%) and Technology (26.5%), with smaller allocations to Industrials (13.0%), Basic Materials (1.7%), and Real Estate (0.1%). KLNE is non-diversified, meaning it concentrates its investments, and its country exposure is split between Other (57.7%) and the United States (42.3%). This ETF is designed for investors seeking short-term, leveraged exposure to the clean energy sector and who understand the risks associated with leveraged investments.

Risk Metrics

KLNE presents several notable risks. Its leveraged nature means that it is subject to amplified gains and losses, making it unsuitable for risk-averse investors or those with a long-term investment horizon. The high expense ratio of 1.33% significantly erodes returns, especially if held for extended periods. Concentration risk is also a major factor, with a substantial portion of the fund invested in a single ETF (ICLN). Sector risk is elevated due to the heavy weighting in Utilities and Technology, making the fund vulnerable to sector-specific downturns. The fund's beta is currently 0.00, but this may not accurately reflect its volatility due to its leveraged nature and relatively short trading history. Past performance does not guarantee future results.

Expense Ratio

1.33%

What does KLNE hold?

Holding	Weight
iShares Global Clean Energy ETF (ICLN)	85.36%

How Is the Fund Allocated?

Sector	Weight
Utilities	58.7%
Technology	26.5%
Industrials	13.0%
Basic Materials	1.7%
Real Estate	0.1%

Country	Weight
Other	57.7%
United States	42.3%

Dividend Yield

2.00%

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iShares MSCI EAFE ETF (EFA) — 0.32% expense ratio

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Direxion Daily Industrials Bull 3X ETF (DUSL) (Equity) — 0.98% expense ratio
Direxion Daily Uranium Industry Bull 2X ETF (URAA) (Equity) — 1.46% expense ratio
Direxion Daily XOM Bull 2X ETF (XOMX) (Equity) — 2.36% expense ratio

Risk Metrics

Beta: 0.00

Questions & Answers

What is KLNE and what does it track?

Direxion Daily Global Clean Energy Bull 2X Shares (KLNE) is a leveraged ETF designed to provide twice the daily investment results of an index focused on global clean energy companies.

It achieves this by investing in financial instruments such as swap agreements, securities of the index, and other ETFs that track the index.

What is the expense ratio for KLNE?

The expense ratio for KLNE is 1.33%. This is significantly higher than the average expense ratio for equity ETFs, which is around 0.44%.

The high expense ratio reflects the cost of managing a leveraged ETF, which involves using financial instruments to amplify returns. Investors should consider this higher cost when evaluating the potential returns of KLNE, as it can erode profits over time.

What are the top holdings in KLNE?

KLNE's portfolio is highly concentrated, with its top holding being the iShares Global Clean Energy ETF (ICLN), comprising 85.36% of the fund's assets.

The fund also invests in other financial instruments to achieve its 2x leveraged exposure to the clean energy sector.

Is KLNE a good long-term investment?

KLNE is generally not considered a suitable long-term investment due to its leveraged nature. Leveraged ETFs are designed to provide amplified daily returns, but this can lead to significant losses over longer periods due to the effects of compounding.

The fund's high expense ratio of 1.33% also detracts from long-term returns.

How does KLNE compare to similar ETFs?

KLNE distinguishes itself from other clean energy ETFs through its leveraged structure, aiming for twice the daily performance of its underlying index.

While other clean energy ETFs like ICLN offer direct exposure to a basket of clean energy companies, KLNE uses financial instruments to amplify returns, resulting in higher potential gains but also greater risk.

Does KLNE pay dividends?

Yes, KLNE does pay dividends. The current dividend yield is 2.00%. However, investors should note that dividend payments can vary and are not guaranteed.

The dividend yield may fluctuate based on the performance of the underlying holdings and the fund's distribution policy. While the dividend yield provides some income, the primary focus of KLNE is on capital appreciation through leveraged exposure to the clean energy sector.