EDZ Profile
The Direxion Daily MSCI Emerging Markets Bear 3X Shares is an exchange-traded fund designed to provide investors with leveraged inverse exposure to the MSCI Emerging Markets Index. This index includes large- and mid-capitalization stocks from 24 emerging market countries, reflecting a broad representation of emerging market equities. The fund aims to achieve its investment objective by using financial instruments such as swap agreements, futures contracts, and short positions, which are structured to deliver three times the inverse performance of the index on a daily basis.
Under normal market conditions, the fund invests at least 80% of its net assets, plus any borrowing for investment purposes, in these financial instruments to maintain its leveraged inverse exposure. This means the fund seeks to provide a return that is three times the opposite of the daily performance of the MSCI Emerging Markets Index. As such, it is designed for investors looking to profit from declines in emerging market equities and is typically used as a short-term trading tool rather than a long-term investment.
The MSCI Emerging Markets Index, which the fund aims to inverse, is a widely recognized benchmark for measuring the performance of emerging markets. It includes companies from a diverse range of sectors and industries, offering a comprehensive snapshot of the economic health and investment opportunities within these rapidly growing regions. The fund's non-diversified nature means it may have concentrated exposure to specific sectors or countries within the emerging markets, increasing its potential risk and volatility.
Investors should be aware that the fund’s use of leverage and inverse strategies means it can experience significant volatility and may not perform as expected over longer periods due to the effects of compounding and daily rebalancing. The fund is designed for experienced traders who understand the risks of leveraged and inverse investments, and it is generally not suitable for buy-and-hold investors or those seeking long-term exposure to emerging markets.
|
