EURL Profile
The Direxion Daily FTSE Europe Bull 3X Shares is an exchange-traded fund (ETF) designed to deliver three times the daily performance of the FTSE Developed Europe Index. The fund achieves this leveraged exposure by investing at least 80% of its net assets, including any borrowed funds used for investment purposes, in a range of financial instruments. These instruments include swap agreements, ETFs that track the index, and direct securities of the index, all aimed at providing magnified returns on a daily basis.
The FTSE Developed Europe Index, tracked by this fund, is a market capitalization-weighted benchmark that captures the performance of large-, mid-, and small-cap companies across developed European markets. This broad coverage includes key economies and sectors within Europe, offering investors access to a diverse array of companies operating in the region. By focusing on this index, the ETF targets high-growth opportunities within developed European equities while applying a leveraged strategy to amplify returns.
The fund's investment strategy involves using leverage to achieve its goal of providing three times the daily performance of the FTSE Developed Europe Index. This involves substantial exposure to derivatives and other financial instruments designed to magnify the daily movements of the index. The leveraged approach is intended to provide amplified returns for short-term investors, though it also introduces higher risk and potential volatility compared to non-leveraged investments.
As a non-diversified fund, the Direxion Daily FTSE Europe Bull 3X Shares may concentrate its investments in specific sectors or securities, which can influence its risk and performance profile. The use of leverage and daily rebalancing means the fund's performance may deviate significantly from the underlying index over longer periods. This makes it suitable for investors with a high risk tolerance and a short-term investment horizon, seeking to capitalize on European market movements with an amplified approach.
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