KORU Profile
The Direxion Daily South Korea Bull 3X Shares ETF is designed to provide investors with leveraged exposure to the South Korean equity market. The fund seeks to achieve 300% of the daily performance of the MSCI Korea 25/50 Index, which is composed of large- and mid-cap stocks representing approximately 85% of the free float-adjusted market capitalization of South Korean issuers. By focusing on this index, the fund offers concentrated exposure to South Korea’s leading companies, aiming to capitalize on the growth potential of one of Asia's most dynamic economies.
To achieve its leveraged investment objective, the fund invests at least 80% of its net assets in a variety of financial instruments. These include swap agreements, which are contracts that allow the fund to gain exposure to the index without directly owning the underlying securities. Additionally, the fund may invest in exchange-traded funds (ETFs) that track the index, as well as in the securities of companies included in the index itself. This approach enables the fund to amplify the returns of the South Korean equity market on a daily basis.
The Direxion Daily South Korea Bull 3X Shares ETF is structured as a non-diversified fund, meaning it does not have to adhere to the diversification requirements that typically limit the percentage of assets that can be invested in a single issuer or sector. This allows the fund to take more concentrated positions in specific segments of the market, which can enhance returns but also increase risk. Investors should be aware that the fund’s leverage strategy is intended for short-term investment horizons, as the compounding of daily returns can lead to significant deviations from the index’s performance over longer periods.
Given its aggressive investment strategy, the fund is primarily suited for sophisticated investors who are looking to capitalize on short-term movements in the South Korean equity market. The use of leverage magnifies both potential gains and losses, making the fund a high-risk, high-reward investment. It is an ideal vehicle for those who have a strong conviction in the near-term performance of South Korea’s stock market and are seeking to maximize returns through leveraged exposure.
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