TYO Profile
The Direxion Daily 7-10 Year Treasury Bear 3X Shares is an actively managed exchange-traded fund (ETF) designed to provide investors with a leveraged inverse exposure to U.S. Treasury securities with maturities ranging from seven to ten years. The fund aims to deliver three times the inverse performance of the index on a daily basis. This is achieved through a combination of financial instruments, including swap agreements, futures contracts, and short positions. The fund’s strategy is tailored to benefit from declines in the value of U.S. Treasury securities within the specified maturity range.
The index tracked by this fund is a market value-weighted benchmark that comprises publicly issued U.S. Treasury securities with remaining maturities between seven and ten years. By focusing on this specific segment of the Treasury market, the fund provides targeted exposure to mid-duration government securities. The leveraged inverse approach means that the fund seeks to achieve a return that is the opposite of the index's performance, magnified by three times. This strategy is intended for short-term trading and may not be suitable for long-term investors due to its daily rebalancing and compounding effects.
Under normal market conditions, the fund maintains at least 80% of its net assets in financial instruments that provide inverse exposure to the index, including the aforementioned swap agreements and futures contracts. This allocation also encompasses any borrowed funds used for investment purposes. The leveraged inverse strategy is designed to deliver significant returns in a declining market but also carries higher risk, including the potential for substantial losses if the market moves against the fund's position.
As a non-diversified fund, the Direxion Daily 7-10 Year Treasury Bear 3X Shares is concentrated in a specific sector of the fixed income market, focusing solely on Treasury securities with mid-range maturities. This concentrated approach allows for precise targeting of market movements but also increases exposure to sector-specific risks. The fund’s investment strategy is actively managed to adapt to market conditions and optimize its inverse leverage, aiming to capitalize on declines in the value of the targeted Treasury securities.
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