NAIL Profile
The Direxion Daily Homebuilders & Supplies Bull 3X Shares is an actively managed exchange-traded fund designed to deliver three times (3x) the daily performance of the S&P Homebuilders Select Industry Index. This fund targets investments in U.S. companies that are engaged in the home construction sector, encompassing a broad spectrum of activities and services related to residential building. These include companies involved in home construction, as well as producers and suppliers of building materials, home furnishings, fixtures, and other related products.
The fund achieves its investment objective by investing at least 80% of its net assets in financial instruments that offer leveraged exposure to the index. This includes a range of tools such as swap agreements, futures contracts, and other derivatives, as well as direct investments in securities that are part of the index or exchange-traded funds (ETFs) tracking the index. The use of leverage allows the fund to amplify returns on a daily basis, reflecting three times the daily movement of the underlying index.
The S&P Homebuilders Select Industry Index, which the fund aims to replicate, is designed to measure the performance of U.S. companies within the homebuilding sector. This index includes firms that are involved in various aspects of home construction and related activities, such as manufacturers of construction materials, distributors, and service providers. The index provides a comprehensive view of the sector, capturing a broad array of companies that contribute to the housing market's infrastructure.
As a non-diversified fund, the Direxion Daily Homebuilders & Supplies Bull 3X Shares focuses its investments specifically on the home construction and supplies sector, without broad diversification across other industries. This concentrated approach allows the fund to closely align with the performance of the homebuilding sector, providing investors with targeted exposure to this market segment. The fund's leveraged strategy is aimed at those seeking to capitalize on short-term movements in the homebuilding industry.
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