EVAV Profile
The Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares ETF is designed to provide leveraged exposure to companies engaged in the electric and autonomous vehicles sectors. The fund seeks to deliver twice the daily performance of the index it tracks, which focuses on firms involved in the development, manufacturing, and innovation of electric and self-driving vehicles. The objective of the fund is to amplify returns for investors with a high risk tolerance, aiming to capitalize on growth trends in these burgeoning industries.
Under normal market conditions, the ETF invests at least 80% of its net assets, including any borrowings for investment purposes, in financial instruments that are linked to the performance of the underlying index. These instruments include swap agreements, securities of the index, and exchange-traded funds (ETFs) that reflect the index’s performance. The index encompasses a broad range of companies involved in electric vehicles (EVs), autonomous driving technology, and related sectors, capturing major players and emerging innovators in the market.
The ETF’s leveraged strategy is designed to provide investors with a magnified exposure to the electric and autonomous vehicles market on a daily basis. This means that if the index increases by 1% in a day, the ETF aims to increase by 2%. However, this leverage also means that losses can be amplified, making the fund suitable primarily for short-term trading and those who can actively manage their investments. The fund’s leveraged nature is achieved through the use of derivatives and other financial instruments to achieve its 2x daily return objective.
By focusing on electric and autonomous vehicle sectors, the Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares ETF targets investors looking to benefit from rapid technological advancements and market growth in these areas. The fund’s investment strategy involves significant risks due to its use of leverage and volatility of the underlying sectors. It is tailored for investors who believe in the potential of electric and autonomous vehicles and are prepared for the heightened risk and reward associated with leveraged investing.
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