JDST Profile
The Direxion Daily Junior Gold Miners Index Bear 2X Shares is designed to offer investors leveraged inverse exposure to the performance of junior gold mining stocks. The fund seeks to achieve this by using a combination of financial instruments, including swap agreements, futures contracts, and short positions. These instruments are employed to create an exposure that is at least twice the inverse (opposite) of the daily performance of its underlying index, which focuses on junior gold mining companies.
The underlying index tracks the performance of micro-, small-, and mid-capitalization companies within the gold mining sector, both domestically and internationally. By focusing on junior gold miners, the index captures the performance of emerging and smaller-scale mining operations that are typically more volatile and sensitive to fluctuations in gold prices compared to larger, established mining firms. The fund's use of leveraged inverse exposure means that it aims to amplify the inverse movements of the index, providing a strategy for investors who anticipate a decline in gold mining stocks.
To achieve its investment objective, the fund invests at least 80% of its net assets, including any borrowing for investment purposes, in financial instruments that create the desired inverse leveraged exposure. This approach allows the fund to provide a magnified inverse return relative to the performance of the index on a daily basis. However, due to the use of leverage and the daily rebalancing of positions, the fund's performance may diverge significantly from the inverse performance of the index over longer periods.
Managed by Direxion Funds, a well-known provider of leveraged and inverse ETFs, the Direxion Daily Junior Gold Miners Index Bear 2X Shares benefits from the firm's expertise in managing complex financial instruments and strategies. Direxion's investment professionals use advanced techniques and market insights to manage the fund's exposure and risk. As a non-diversified fund, it focuses exclusively on junior gold miners and related financial instruments, offering investors a highly targeted approach to speculating on or hedging against declines in the gold mining sector.
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