DIG vs ERX

DIGCProShares Ultra Energy

ERXBDirexion Daily Energy Bull 2X ETF

In short

DIG Two times the daily move of the S&P 500's energy sector, delivered in stocks rather than crude futures. Trading since 2007, DIG is one of the originals in leveraged energy, built on big integrated oil names instead of wildcat drillers.

ERX The 2008 original of the leveraged energy trade: 2x the daily move of the Energy Select Sector Index, built from oil-major stocks rather than crude futures. Sector-wide exposure, dialed up, for holding periods measured in days.

Stated mandate

DIG The fund seeks daily investment results, before fees and expenses, equal to twice the daily performance of the S&P Energy Select Sector Index.

ERX The fund seeks daily investment results, before fees and expenses, equal to 200% of the performance of the Energy Select Sector Index for a single day. It is not designed to deliver twice the index’s cumulative return over periods longer than one day.

Why people hold it

• DIG Leverage on the blue-chip benchmark: twice the daily move of the S&P Energy Select Sector Index, a cap-weighted slice of S&P 500 energy names, so the big integrateds set the pace.sec.gov
• Stocks, not barrels. The exposure sits on a concentrated basket of roughly 30 energy equities, with no crude futures roll in the machinery, unlike peer UCO.proshares.com
• Running since January 2007, through multiple oil booms and busts, it is one of the longest-standing 2x energy funds, and it passes along underlying stock dividends quarterly.

• ERX At 0.91% it undercuts every rival in its leveraged energy group, including GUSH (0.94%), UCO and BOIL (0.95%) and DIG (1.07%).
• Rides a stock index of roughly 30 US energy companies, so there is no crude futures roll to fight, unlike the commodity-based versions of the same trade.direxion.com
• Live since November 2008, it has traded through multiple oil booms and busts. Few leveraged sector funds have that much tape behind them.
• One of the stronger implementations in the leveraged energy peer group, with low cost doing much of the heavy lifting.

Worth knowing

• DIG Leverage rebalances daily, so returns over any longer hold can differ significantly from 2x the index; ProShares notes a near-50% one-day index drop could wipe out the investment.proshares.comsec.gov
• 0.95% net of a waiver through September 30, 2027 (1.06% gross) sits near the category median, while newer rival XLEX lists 0.45% and ERX 0.91%.
• One of the less-traded funds in its corner of the market, so bid-ask spreads and limit orders matter more here than with the biggest leveraged energy names.

• ERX The 2x target resets every day. Hold longer and compounding takes over, so a week or a month can land well away from twice the index move.
• One sector, one country, about 30 stocks, then doubled. The concentration is the point and the risk in the same breath.
• Moderately traded rather than one of the busiest leveraged funds on the tape, so spreads and order size carry more weight at the point of entry.

Full DIG profile⁠

Full ERX profile⁠