Mar. 19, 2020
Comment on SEC Proposed Rule #S7-24-15: My experience with DIREXION SHARES ETF TRUST DIREXION DAILY GOLD MINERS INDEX BULL 3X SHARES (NUGT) is as follows: Purchased 200 shares NUGT in Sept, 2013 for a total of $14,264. Gold prices were at $1465. My investment immediately started losing value and I felt that it would soon recover and I would sell. Unfortunately that was not the case. Direxion announced a 1 for 10 reverse split leaving me with 20 shares, a year later Direxion announced a forward split 5 for 1 leaving me with 100 shares. In May, 2017, Direxion announced a 1 for 4 reverse split leaving 25 shares. Currently my 25 shares are worth $146, leaving me a paper loss of $14,118!! Current gold prices are $1482, a small upside from where I initially purchased my shares. Therefore you would think my initial investment should be whole, yet it's worthless!! This was a big chunk of my retirement. These L& I funds are very dangerous investments only making money for Direxion, the issuer and losing money for the share holder. Direxion adjusts the share price by using splits and everyone knows you never recover from a reverse split. It only benefits Direxion in the long run. These L&I investments should not be available to the average investor and there should be compensation for small investors like myself, that have lost 95% of their investment, even though the underlying asset has barely changed in value. I'm looking for a class action lawsuit to join in hopes of recouping some small fraction of my loss. Something should be done.