Direxion Daily Mid Cap Bull 3X Shares (MIDU)

Overview

The described fund specializes in providing leveraged exposure to the performance of mid-sized U.S. companies. Focused on tracking an index that encompasses 400 mid-tier firms, it employs an investment strategy that involves using financial instruments to amplify daily index returns by 3 times. This approach aims at maximizing the potential for gains by betting on the performance of these companies, albeit with a higher degree of risk due to the leveraged nature of its investments. The fund opts for a non-diversified investment portfolio, concentrating its assets in a way that seeks to achieve its stated investment objective, even as it increases its exposure to the risk of volatility and loss.

Products and Services

• Swap Agreements - These are derivative contracts through which two parties exchange financial instruments, typically involving cash flows or other financial assets. The fund uses swap agreements as a primary tool to achieve its goal of 3X daily leveraged exposure, allowing it to amplify the returns (or losses) based on the performance of the mid-sized companies index.
• Securities of the Index - Investment directly in securities that are components of the index which measures the performance of 400 mid-sized U.S. companies. This direct investment strategy is fundamental for providing the base exposure to the index's performance, which the fund seeks to leverage.
• Exchange-Traded Funds (ETFs) - The fund invests in ETFs that track the same mid-sized companies index. These ETFs offer a way to gain broad exposure to the index while also allowing for the liquidity and flexibility associated with traded securities. By including ETFs in its portfolio, the fund can more effectively manage its goal of achieving 3X leveraged exposure.