2x Robinhood ETF draws attention after 29% rally

Shares of Robinhood Markets rose 29.46% in the month ending June 26. That gain has drawn attention to the Direxion Daily HOOD Bull 2X ETF (HODU), a leveraged fund that seeks to deliver 200% of Robinhood’s daily stock return. HODU is structured for short-term trading and resets its exposure each trading day.

BTIG initiated coverage of Robinhood with a buy rating and set a $125 price target, implying more than 25% upside from the June 26 close. Market participants have cited that coverage and the recent price jump when assessing short-term trades in HODU.

Robinhood reported $1.07 billion in revenue for the first quarter of 2026, a 15% year-over-year increase. The company reported core crypto revenue declined 47%, which reduced results by about $118 million; without that decline revenue growth would have been 26% year over year. Robinhood said it is expanding its product set with prediction markets, crypto staking, banking services and private market access.

BTIG analyst Andrew Harte described the company as “born to disrupt, built to compound” and reported an average customer age of 36 with an average account balance of $13,000.

Leveraged ETFs reset daily. HODU is designed to produce twice the daily return of Robinhood stock, so gains and losses are magnified on a daily basis. Compounding over multiple days can change returns from the simple multiple of the underlying stock’s multi-day move. Fund documents and financial advisers typically warn that leveraged ETFs are intended for short holding periods and require active monitoring.

The recent price rise, analyst coverage and Robinhood’s reported results have prompted traders to consider HODU for short-term positions tied to movements in Robinhood shares or to changes in cryptocurrency trading activity.