Direxion Daily Financial Bull 3X Shares (FAS)
XMEX 
Summary
FAS Chart
Weekly Option Windfall: Financial ETF Offers 29% Return Potential in 1 Month
The call option spread strategy is an excellent way to take advantage of the bullish move in this ETF.
FAS Can Amplify Returns On The Financials Sector
FAS delivers 3x daily returns of the financial sector, making it suitable only for short-term, tactical trading—not long-term holding. Compounding and daily resets can lead to significant value decay or amplified gains, depending on market direction and holding period. Current financial sector momentum is positive, but inflation and delayed rate cuts pose near-term risks for leveraged strategies like FAS.
Direxion Daily Financial Bull 3X: Not For Building Long-Term Investment Portfolios
Leveraged ETFs, like the Direxion Daily Financial Bull 3X ETF, are designed for day trading, not long-term investing, due to their daily reset mechanism. Holding leveraged ETFs beyond a single day can result in losses, even if the underlying index remains flat, due to the compounding effects of leverage. Leveraged ETFs are suitable for traders looking to hedge short-term positions or speculate on market movements, not for building long-term investment portfolios.
Direxion Daily Financial Bull 3X Shares (FAS) FAQ
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Direxion Daily Financial Bull 3X Shares Profile
| XMEX Exchange | US Country |
Overview
The fund is designed for investors looking for aggressive investment strategies, with a focus on the financial sector. It aims to offer thrice the daily leveraged exposure to its underlying index, which encompasses a broad spectrum of industries within the financial sector, including banks, mortgage finance, diversified financial services, consumer finance, capital markets, insurance, and mortgage REITs. This aggressive strategy is implemented through the use of financial instruments such as swap agreements, securities of the index, and ETFs tailored to track the index. Given its concentrated strategy, the fund is non-diversified, directing a significant portion of its assets towards achieving its investment objective.
Products and Services
- Swap Agreements:
These are derivative contracts through which two parties exchange the cash flows or liabilities from two different financial instruments. In the context of this fund, swap agreements are used to gain leveraged exposure to the underlying index without directly owning the securities.
- Securities of the Index:
Direct investment in stocks or other securities that are constituents of the targeted index. This approach allows the fund to closely track the performance of the financial sectors it aims to emulate.
- ETFs that Track the Index:
Exchange-Traded Funds (ETFs) which replicate the performance of the index. This offers the fund an additional layer of diversification and exposure to the financial sector, contributing to its 3X daily leveraged objective.
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