TNA: Small Caps Could Benefit From U.S. Economy Uptick In 2026
Amid a weaker-than-expected U.S. economy in 2025, the Russell 2000-tracking Direxion Daily Small Cap Bull 3X Shares ETF has marginally underperformed the S&P 500. Looking ahead to 2026, the Russell 2000 should benefit from an acceleration in U.S. GDP growth, a falling unemployment rate, and ongoing Fed rate cuts. The Russell 2000 offers a sizable ~35% trailing P/E discount relative to the S&P 500, partially stemming from its sizable (but declining) overweight position in cyclical sectors.
TNA: Tariff Policy May Overshadow Rate Policy For Small-Caps
TNA offers 3x daily exposure to the Russell 2000, making it suitable for active traders but not for long-term investors. Small-cap stocks may struggle in an inflationary environment, even if interest rates decline, due to higher import costs and tighter margins resulting from tariff policy. Holding TNA beyond a single day exposes investors to compounding risks and value decay, especially during consecutive down days.
Profiting in Small-Caps Whether They Go Up, Down, or Remain Flat
Weekly options are the ideal investment for turning small amounts of money into large amounts.
TNA: Buy For Big Gains On Small Caps
Direxion Daily Small Cap Bull 3X Shares (TNA) is a triple leveraged ETF tracking the Russell 2000, aiming for 300% of daily benchmark movement. Despite long-term bullishness on the Russell 2000, current market volatility necessitates caution with TNA, emphasizing short-term holding strategies. Leveraged ETFs like TNA are best held short-term due to volatility and loss recoupment risks, making them suitable for playing market catalysts.
U.S. politician bets big on small-cap stocks
The stock market has been in a tumultuous, volatile state lately — and one U.S. politician is betting that small-cap stocks will see the best returns going forward.
Higher Volatility Could Pave the Way for Small-Cap Strength
A new presidential administration and an inflection point for the Federal Reserve are adding a high degree of uncertainty to the market. That could bring forth heightened volatility.
TNA: Small Caps Remain Cheap At The Start Of 2025
The Direxion Daily Small Cap Bull 3X Shares ETF seeks to deliver 300% (3x) the return of the Russell 2000 index. Russell 2000 components currently trade at a trailing earnings yield of roughly 6.2%, well above the S&P 500's 4.10% forward earnings yield. The outlook for Russell 2000 earnings growth is bright thanks to a strong US economy, a low payout ratio, and benefits from Fed policy normalization.
Small-Caps Stocks Looked Primed for Year-End Rally
A Santa Claus rally can benefit all market capitalization sizes, including small-caps. The Russell 2000 index is already up more than 20% for the year.
Small-Caps Having Their Own Post-Election Moment
The prime indicator of small-cap performance, the Russell 2000, is up almost 9% the past five days. As such, small-cap equities are having their own post-election rally and it could sustain itself through the rest of the year and beyond.
TNA: Small Caps Set To Benefit From Fed Tailwinds In Q4 2024
The Direxion Daily Small Cap Bull 3X Shares ETF (TNA) seeks to deliver 300% of the daily performance of the Russell 2000 index. Russell 2000 companies issue more floating rate debt relative to S&P 500 components - a key tailwind during Fed easing. Lower valuations and a smaller payout ratio are likely to drive Russel 2000 outperformance over the medium term.
TNA: It Might Be Time To Invest In Small-Caps
Small-caps historically outperform large caps due to growth potential and margin expansion. The Magnificent 7 have attracted capital flows to large companies, leaving smaller ones forgotten. Small-caps are not cheaper due to structural problems, but rather due to lack of investor interest, making them a potential opportunity.
2 Leveraged ETFs to Play Small-Caps Strategically
Small-caps can make amplified moves toward the upside, but they can also burn short-term traders on the downside. This is why it pays to be strategic in volatile times like now with leveraged and inverse exchange-traded funds.
