TNA offers 3x daily exposure to the Russell 2000, making it suitable for active traders but not for long-term investors. Small-cap stocks may struggle in an inflationary environment, even if interest rates decline, due to higher import costs and tighter margins resulting from tariff policy. Holding TNA beyond a single day exposes investors to compounding risks and value decay, especially during consecutive down days.
Weekly options are the ideal investment for turning small amounts of money into large amounts.
Direxion Daily Small Cap Bull 3X Shares (TNA) is a triple leveraged ETF tracking the Russell 2000, aiming for 300% of daily benchmark movement. Despite long-term bullishness on the Russell 2000, current market volatility necessitates caution with TNA, emphasizing short-term holding strategies. Leveraged ETFs like TNA are best held short-term due to volatility and loss recoupment risks, making them suitable for playing market catalysts.
ARCA Exchange | US Country |
The described company operates within the financial sector, focusing on providing its clients with leveraged exposure to the small-capitalization sector of the market. It achieves this through investing a minimum of 80% of its net assets into financial instruments that aim for triple (3X) the daily performance of its targeted index. This targeted index comprises approximately 2,000 small-capitalization companies within the broader Russell 3000® Index, emphasizing those selected based on their market capitalization and current membership within the index. As a non-diversified fund, it concentrates its investments more heavily in its chosen financial instruments compared to diversified funds, which may spread their investments across a wider range of assets.
These are contracts through which the fund can exchange the returns of its assets for those of the index it seeks to track, effectively providing the leverage it aims for. Swap agreements are a pivotal part of the fund's strategy to amplify its exposure to the performance of small-cap companies within the Russell 3000® Index.
The fund invests in securities that are part of its targeted index, directly linking its performance to the small-capitalization companies within the Russell 3000® Index. This direct investment is another method through which the fund seeks to achieve its objective of 3X daily leveraged exposure to these companies.
By investing in ETFs that track the same index, the fund is able to diversify its approach to achieving its leverage objective. ETFs offer a more flexible and liquid option for participating in the performance of the index, complementing the fund's other investment strategies.