WEBS Profile
The Direxion Daily Dow Jones Internet Bear 3X Shares is designed to provide investors with leveraged inverse exposure to the Dow Jones Internet Index. This fund seeks to deliver three times the inverse performance of the index on a daily basis, meaning it aims to achieve returns that are three times the opposite of the daily performance of the index. This is accomplished through a combination of financial instruments such as swap agreements, futures contracts, and short positions.
The Dow Jones Internet Index comprises companies that derive at least 50% of their annual sales or revenue from internet-related activities, as determined by the index provider. This includes a broad range of internet-based businesses such as e-commerce, digital media, and online services. By targeting this index, the fund focuses on sectors heavily influenced by internet technology and trends, providing a means for investors to benefit from declines in these market segments.
Under normal market conditions, the fund allocates at least 80% of its net assets to the aforementioned financial instruments to achieve its leveraged inverse exposure. This strategic allocation allows the fund to maintain its targeted exposure to the index while managing the inherent risks associated with leveraged and inverse investing. The approach is designed to capitalize on declines in internet sector equities, offering a tool for hedging or speculative purposes.
As a non-diversified fund, the Direxion Daily Dow Jones Internet Bear 3X Shares focuses exclusively on the internet sector, with a strategy that emphasizes the use of complex financial instruments to achieve its investment objective. Managed by Direxion, the fund benefits from the firm’s expertise in leveraged and inverse products, providing investors with a specialized vehicle for navigating declines in internet-related equities. The fund’s approach is tailored to investors seeking to exploit short-term market movements in the technology and internet sectors.
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