Direxion Daily Financial Bear 3X Shares (FAZ)
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FAZ Chart
Direxion Daily Financial Bear 3X Shares ETF: For Trading, Not Holding
Understand the construction of financial instruments to ensure they align with your investment goals and avoid frustrating those goals by using the wrong instruments. Leveraged ETFs are designed for short-term trading, not long-term holding, due to daily resets and time value decay in derivatives. FAZ, a 3x leveraged bear ETF for the financial sector, should be used for daily trading or speculation, not as a buy-and-hold investment.
FAZ: A Tactical Risk-Enhancement Tool For A Financials Sector Bear Market
Leveraged inverse ETFs like FAZ can be used to gain from market declines, especially in the financial sector, but are not long-term investments. These ETFs should be held for no longer than a single trading day due to price decay and daily rebalancing risks. Timing trades using momentum indicators like RSI can help capture gains, but caution is advised to avoid overuse and potential losses.
Direxion Daily Financial Bear 3X Shares (FAZ) FAQ
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Direxion Daily Financial Bear 3X Shares Profile
| XMEX Exchange | US Country |
Overview
This company operates a specialized investment fund that is designed to provide investors with 3X daily inverse (or opposite) exposure to a specific index. This means that the fund aims to achieve results that are three times the inverse of the daily performance of the targeted index, which includes companies from various sectors within the financial industry. These sectors encompass Banks, Thrifts & Mortgage Finance, Diversified Financial Services, Consumer Finance, Capital Markets, Insurance, and Mortgage REITs. The investment strategy involves allocating at least 80% of the fund’s net assets in financial instruments that aim to achieve the fund's stated investment objective. It is important to note that this fund is non-diversified, focusing its investments to achieve its specific inverse exposure goal.
Products and Services
- 3X Daily Inverse Exposure Instruments
- ETFs Tracking the Targeted Index
- Non-Diversified Investment Focus
This product focuses on offering investors the opportunity to gain three times the inverse daily performance of the targeted index. It primarily involves financial derivatives and instruments that are structured to amplify the inverse results of the index’s performance. This is suited for investors seeking aggressive investment strategies that capitalize on declines in the financial sector.
Aside from direct financial instruments providing inverse exposure, the fund may also invest in ETFs (Exchange Traded Funds) that follow the index. This method offers a diversified approach to achieving the fund's investment objectives by leveraging ETFs familiar with and tracking the index's performance, albeit aiming for an inverse return.
Given the fund's specific objective of providing 3X inverse exposure to the targeted index, its investment strategy is non-diversified. This means the fund focuses its investments more narrowly than diversified funds, concentrating on financial instruments and ETFs that directly contribute to achieving its aggressive investment goal. This approach is particularly tailored for investors with a high-risk tolerance interested in the financial sector's specific segments.
