MEXX Profile
Direxion Daily MSCI Mexico Bull 3X Shares is an actively managed fund that seeks to deliver three times (3X) the daily performance of the MSCI Mexico IMI 25/50 Index. To achieve this objective, the fund invests at least 80% of its net assets in a variety of financial instruments, including swap agreements, ETFs that track the index, and other securities. These investments are designed to provide leveraged exposure to the index, aiming to magnify returns based on daily performance.
The MSCI Mexico IMI 25/50 Index, which the fund targets, is engineered to capture the performance of the broad Mexican equity market, encompassing large-, mid-, and small-cap stocks. The index covers approximately 99% of the free float-adjusted market capitalization of Mexico, offering comprehensive exposure to the country's equity market. This includes a diverse range of companies across various sectors, reflecting the overall performance of the Mexican economy.
The fund's strategy involves using financial instruments that are specifically chosen to achieve daily leveraged exposure to the index. This approach allows investors to potentially benefit from short-term movements in the Mexican equity market with amplified returns. However, this leveraged exposure also entails higher risk, particularly due to the daily reset of the leverage factor, which can lead to significant performance deviations over longer periods.
As a non-diversified fund, Direxion Daily MSCI Mexico Bull 3X Shares maintains a concentrated investment approach, focusing on achieving high levels of leverage and exposure to the Mexican market. This strategy is tailored for investors seeking aggressive growth and who are comfortable with the inherent risks of leveraging, including potential volatility and rapid fluctuations in performance. The fund's emphasis on daily leveraged returns makes it a specialized investment vehicle suited for tactical trading and short-term market strategies.
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