SPDN Profile
The Direxion Daily S&P 500 Bear 1X Shares is designed to provide investors with a daily inverse exposure to the performance of the S&P 500 Index. This exchange-traded fund (ETF) aims to deliver returns that are the opposite of the daily performance of the S&P 500, making it a tool for those looking to hedge against or profit from declines in the broad U.S. equity market.
Under normal market conditions, the fund employs a range of financial instruments, including swap agreements, futures contracts, and short positions, to achieve its investment objective. The strategy involves taking positions that are expected to move inversely to the S&P 500 Index. Specifically, the fund invests at least 80% of its net assets, including any borrowed funds, in these instruments to ensure that it effectively tracks the inverse performance of the index.
The S&P 500 Index, to which the fund provides inverse exposure, is a float-adjusted, market capitalization-weighted index that measures the performance of 500 large-cap U.S. companies. By utilizing financial derivatives and short-selling techniques, the Direxion Daily S&P 500 Bear 1X Shares aims to deliver returns that are negatively correlated with the index’s daily movements. This approach is intended for short-term trading and hedging rather than long-term investment.
Investors in the Direxion Daily S&P 500 Bear 1X Shares should be aware that the fund's performance is designed to reflect the inverse of the index's daily returns. As such, it is subject to significant fluctuations and may not perform as expected over longer periods due to the effects of compounding and daily rebalancing. This ETF is non-diversified, meaning it does not hold a broad array of securities, but instead focuses on instruments that provide the targeted inverse exposure to the S&P 500 ndx.
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