TYD Profile
The Direxion Daily 7-10 Year Treasury Bull 3X Shares is an actively managed exchange-traded fund designed to provide daily leveraged exposure to U.S. Treasury securities with maturities between seven and ten years. The fund's objective is to achieve three times (3X) the daily performance of its benchmark index, which tracks the performance of publicly issued U.S. Treasury securities in the specified maturity range. This leveraged exposure aims to magnify returns on a daily basis, reflecting a threefold increase in the daily percentage change of the index before fees and expenses.
To meet its investment goal, the fund allocates at least 80% of its net assets to a combination of financial instruments, including swap agreements, direct holdings of Treasury securities, and exchange-traded funds (ETFs) that track the index. These instruments are utilized to achieve the targeted leverage and provide daily exposure to the performance of the index. The index itself is a market-value weighted index composed of U.S. Treasury securities with remaining maturities of seven to ten years, offering a benchmark for the fund's performance.
The fund's investment strategy involves maintaining a highly leveraged position in the selected Treasury securities through various financial instruments. This approach enables the fund to capitalize on short-term movements in the Treasury market, with the aim of amplifying gains during periods of favorable market conditions. However, it is important to note that due to the leveraged nature of the fund, the potential for amplified losses also exists, particularly over periods longer than one day.
As a non-diversified fund, the Direxion Daily 7-10 Year Treasury Bull 3X Shares focuses exclusively on a specific segment of the Treasury market, investing heavily in instruments related to its benchmark index. The fund’s strategy is designed for investors seeking to gain short-term, leveraged exposure to intermediate-term U.S. Treasury securities. Its management team actively monitors and adjusts the portfolio to align with the fund’s daily performance objectives, ensuring that it remains positioned to achieve the targeted leverage and performance metrics.
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