TMV Profile
The Direxion Daily 20+ Year Treasury Bear 3X Shares fund is designed to provide investors with inverse leveraged exposure to long-term U.S. Treasury securities. Specifically, the fund seeks to deliver three times the opposite daily performance of its underlying index, which consists of U.S. Treasury securities with maturities exceeding 20 years. This approach allows investors to potentially benefit from declines in long-term Treasury bond prices.
Under normal market conditions, the fund allocates at least 80% of its net assets, including any borrowings for investment purposes, to financial instruments such as swap agreements, futures contracts, and short positions. These instruments are used to achieve the inverse leveraged exposure necessary to meet the fund’s investment objective. The focus on long-term Treasury bonds reflects the fund’s strategy of targeting specific interest rate and economic environments where long-term Treasury securities may be expected to decline in value.
The underlying index tracked by the fund is a market value-weighted benchmark comprising publicly issued U.S. Treasury securities with remaining maturities of 20 years or more. By seeking to deliver three times the inverse performance of this index, the fund is designed for investors who anticipate a decline in the value of long-term Treasury bonds and seek to capitalize on potential market corrections or adverse movements in interest rates.
As a non-diversified fund, the Direxion Daily 20+ Year Treasury Bear 3X Shares focuses its investments within a specific segment of the bond market, namely long-term U.S. Treasury securities. This concentrated investment strategy, combined with the use of leverage and inverse performance objectives, is intended for experienced investors who understand the risks associated with leveraged and inverse investments.
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