DUST Profile
The Direxion Daily Gold Miners Index Bear 2X Shares fund is designed to offer investors leveraged inverse exposure to the performance of the Gold Miners Index. This fund uses a combination of financial instruments, including swap agreements, futures contracts, and short positions, to achieve its objective. Specifically, it seeks to provide an inverse exposure of -2x to the daily performance of the underlying index, meaning it aims to deliver twice the opposite of the index's daily returns. Under normal market conditions, the fund allocates at least 80% of its net assets to these leveraged positions to achieve its investment goal.
The Gold Miners Index, which the fund tracks inversely, is a modified market capitalization-weighted index that includes publicly traded companies involved in gold mining operations. This index spans both developed and emerging markets, capturing a global spectrum of gold mining firms. While the primary focus is on gold mining companies, the index also includes firms engaged in silver mining, although to a lesser extent. The index's composition reflects the market capitalization of the constituent companies, adjusted for liquidity and other relevant factors.
As a non-diversified fund, the Direxion Daily Gold Miners Index Bear 2X Shares fund does not aim for broad diversification across multiple sectors or asset classes. Instead, its strategy is concentrated in the specific sector of gold mining and related activities, with an emphasis on short and leveraged positions. This concentrated approach reflects the fund's strategy to provide targeted inverse exposure to the gold mining sector.
The leveraged inverse strategy employed by the fund is designed for short-term trading and is intended to benefit investors seeking to hedge against declines in the gold mining sector or to speculate on the sector's downward movements. Due to its leveraged and inverse nature, the fund's performance may deviate significantly from the performance of the Gold Miners Index over longer periods, making it more suitable for sophisticated investors with a high risk tolerance and a focus on short-term market movements.
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