HIBS Profile
The Direxion Daily S&P 500 High Beta Bear 3X Shares fund is designed to offer investors a leveraged inverse exposure to high beta stocks within the S&P 500 Index. The fund seeks to achieve this by investing at least 80% of its net assets in a range of financial instruments, including swap agreements, futures contracts, short positions, and other strategies that collectively provide an inverse (or opposite) exposure to the performance of its underlying index. This leveraged approach aims to deliver three times the inverse performance of the selected high beta stocks on a daily basis.
The underlying index for this fund is constructed by selecting 100 securities from the S&P 500 Index that have demonstrated the highest sensitivity to market fluctuations, known as "beta," over the preceding 12 months. These high beta stocks are characterized by their significant price volatility relative to the broader market. By focusing on these securities, the fund targets those stocks that are expected to experience the greatest price movements in response to changes in market conditions, making it suitable for investors seeking to capitalize on anticipated declines in high beta equities.
This fund's leveraged inverse strategy involves complex financial instruments and strategies designed to magnify the inverse performance of the high beta segment of the S&P 500. It aims to provide a return that is three times the opposite of the daily performance of the high beta stocks. Given its leveraged and inverse nature, the fund is primarily used for short-term trading and hedging purposes, and may not be suitable for all investors due to its heightened risk profile and potential for significant daily fluctuations.
The Direxion Daily S&P 500 High Beta Bear 3X Shares fund is part of Direxion's suite of leveraged and inverse ETFs, which are designed to offer sophisticated investors targeted exposure to various market segments. By focusing on high beta stocks and employing leverage to amplify inverse returns, the fund provides a specialized tool for investors looking to hedge against market volatility or take advantage of short-term bearish trends in high beta equities.
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