TNA Profile
The Direxion Daily Small Cap Bull 3X Shares fund aims to provide investors with three times the daily return of its underlying index, which focuses on small-cap U.S. companies. The fund achieves this by investing at least 80% of its net assets, including any borrowings for investment purposes, in financial instruments designed to offer leveraged exposure. These instruments include swap agreements, securities of the index, ETFs that track the index, and other related financial products.
The index tracked by the fund is a subset of the Russell 3000 Index and includes approximately 2,000 small-capitalization companies. This index is designed to reflect the performance of smaller U.S. companies based on their market capitalization. By targeting this segment of the market, the fund seeks to capitalize on the potential for higher volatility and growth associated with smaller-cap stocks, which are often more sensitive to economic changes and market fluctuations.
The leveraged approach of the fund is intended to amplify returns on a daily basis, providing investors with the opportunity to benefit from short-term movements in the small-cap market. The focus on daily leveraged exposure means that the fund is designed for investors with a high risk tolerance who are looking to exploit short-term market trends. The use of leverage and concentrated investments in small-cap stocks can result in significant fluctuations in value.
As a non-diversified fund, the Direxion Daily Small Cap Bull 3X Shares is concentrated in a specific market segment, with a strategy that relies on leveraging small-cap stocks. This concentrated approach, combined with the funds use of leverage, is aimed at investors who understand the associated risks and seek to achieve magnified returns from the performance of small-cap equities.
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