Direxion Daily Latin America Bull 2X Shares (LBJ)

Overview

The fund is an investment vehicle that primarily targets opportunities in Latin America, focusing on the equity markets of Brazil, Chile, Columbia, Mexico, and Perú. It aims to achieve leveraged exposure to a specific index that is a float-adjusted market capitalization weighted equity index, encompassing issuers from these five major Latin American markets. The fund operates under the principle of investing at least 80% of its net assets in a mix of financial instruments including swap agreements, ETFs tracking the mentioned index, directly purchasing securities of the index, and other related financial instruments that facilitate daily leveraged exposure either to the index itself or to ETFs that mirror the performance of the index. It is categorized as non-diversified, indicating a strategic focus on a relatively concentrated number of investments.

Products and Services

• Swap Agreements

Swap agreements are a foundational component of the fund's investment strategy, utilized to gain leveraged exposure to the targeted Latin American equity index. These instruments are pivotal in enabling the fund to meet its objectives by swapping cash flows or other financial assets with other parties, based on the performance of the index or the ETFs tracking it.

• ETFs Tracking the Index

The fund invests in ETFs that directly track the performance of the specified Latin American equity index. This is a critical strategy for achieving exposure to the broad market movements within the targeted Latin American countries, while also benefiting from the liquidity and diversification ETFs typically offer.

• Securities of the Index

Direct investment in the securities that comprise the Latin American equity index allows the fund to align closely with the index's performance. This approach involves purchasing stocks of companies listed in the index, representing a direct investment in the equity markets of Brazil, Chile, Columbia, Mexico, and Perú.

• Other Financial Instruments

To ensure flexibility and enhance potential returns, the fund also engages in transactions involving other financial instruments. These may include options, futures, or other derivatives that provide leveraged exposure to either the Latin American equity index or ETFs that track this index. This diversified approach helps in optimizing the fund's performance relative to its investment objectives.