DRN ETF

The Direxion Daily Real Estate Bull 3X Shares ETF seeks to deliver 300% of the return of the IXRE index which is heavily tilted to large-capitalization US REITs. I expect underlying IXRE constituents to deliver a high-single-digit total return over the next few years, driven predominantly by current cash flows but also some valuation gains. The leverage employed by the DRN should translate these gains into a low-double-digit return for investors after fees.

Investors seeking to capitalize on the steady/declining rate scenario in a short span could consider any of these ETFs.

Higher interest rates aren't just a thorn in the side of prospective residential real estate buyers and owners. Additionally, commercial real estate is feeling the pangs of a high-rate environment.

Top Performing Levered/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.

A summer real estate market should help heat up the sector amid relatively high interest rates. If the real estate market is indeed in recovery mode, that's just what it needs for bullish momentum.

DRN suffered 53.5 percent price loss during the past one year. In the absence of any significant yield, its total return was equally pathetic at -52.5 percent. Most REITs included in DRN's portfolio have neither performed during the past one year nor have the potential to generate positive returns in the near future. DRN failed to generate any positive return during 2023, too, and this 3x leveraged fund doesn't seem to be the exposure that investors are looking for.