RETL Profile
The Direxion Daily Retail Bull 3X Shares fund seeks to provide investors with leveraged exposure to the retail sector. Under normal market conditions, the fund invests at least 80% of its net assets in a range of financial instruments, including swap agreements, securities that track its underlying index, and ETFs that replicate the index. These instruments are chosen to achieve daily returns that are three times the performance of the index.
The underlying index is a modified equal-weighted benchmark that tracks the performance of retail stocks within the S&P Total Market Index. It specifically focuses on companies classified under the Global Industry Classification Standard (GICS) retail sub-industry. This index includes a broad array of retail stocks, providing a comprehensive view of the retail sector's performance in the broader U.S. market.
The fund employs a leveraged investment strategy to amplify daily returns. By using various financial instruments to gain exposure to the retail sector, including derivatives and ETFs, it aims to deliver three times the daily performance of the retail sub-industry index. This strategy is designed for investors looking for significant short-term gains based on daily market movements in the retail sector.
As a non-diversified fund, the Direxion Daily Retail Bull 3X Shares fund concentrates its investments in the retail sector. This focus on a specific industry sector allows the fund to provide targeted exposure and potentially higher returns correlated with retail market trends. However, the leveraged nature of the fund also introduces a higher level of risk and is suitable for investors with a high risk tolerance seeking aggressive short-term investment strategies.
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