Direxion Daily S&P 500 High Beta Bull 3X Shares (HIBL)

Overview

The described fund is designed to offer investors a specialized financial instrument that aims to provide leveraged exposure to the stock market. Specifically, it targets the provision of three times the daily performance of an index composed of 100 securities selected from the S&P 500® Index. These securities are chosen based on their high sensitivity to market movements, or "beta," over the previous 12 months. By focusing on these particular stocks, the fund seeks to amplify the effects of market volatility in its favor. Given its concentration on a select group of securities for achieving its investment objective and its leveraged nature, the fund categorizes itself as non-diversified. This means that it may invest a larger portion of its assets in fewer securities, potentially increasing its risk and return profile.

Products and Services

• 3X Daily Leveraged Exposure

  This product aims to provide investors with three times the daily performance of its benchmark index, which is composed of 100 high-beta securities from the S&P 500® Index. By employing financial instruments that offer leveraged exposure, the fund seeks to magnify the returns for investors willing to accept a higher level of risk. This characteristic makes it an attractive option for those aiming to achieve significant gains from daily stock market movements.

• High-Beta Securities Selection

  The method of selecting 100 securities based on their beta value over the past 12 months is designed to capture the highest market sensitivity. Beta, a measure of a security's volatility in comparison to the market as a whole, allows this fund to target investments that have shown greater price movements relative to the market. This strategy is predicated on the belief that such securities will continue to exhibit high volatility, potentially leading to higher returns, especially when leveraged.

• Non-Diversified Structure

  Operating as a non-diversified fund, it concentrates its investments in a smaller number of securities. This approach can lead to more significant investment risks, as the fund's performance is more closely tied to the fortunes of fewer assets. However, it also offers the possibility of higher returns, particularly if the selected securities perform well. This structure aligns with the fund’s goal of achieving amplified returns through leveraged exposure to a handpicked set of high-beta stocks.