Direxion Daily Consumer Discretionary Bull 3X Shares (WANT)

Overview

The fund is designed for investors seeking a highly leveraged investment strategy, focusing primarily on the consumer discretionary sector. By investing at least 80% of its net assets in a combination of financial instruments, including swap agreements, securities of the index, and ETFs that closely track the index, the fund strives to offer 3X daily leveraged exposure to its underlying index. This index is curated by S&P Dow Jones Indices, a renowned index provider, and features a selection of domestic companies operative within the consumer discretionary sector. The fund's approach is non-diversified, indicating a concentrated investment strategy in the targeted sector to potentially maximize returns for investors through its leveraged exposure strategy.

Products and Services

• Swap Agreements

Swap agreements are financial contracts in which two parties agree to exchange the cash flows or liabilities from two different financial instruments. For this fund, swap agreements are utilized as a primary method to obtain the desired leveraged exposure to the consumer discretionary sector, enabling the fund to amplify the returns of its underlying index.

• Securities of the Index

Securities of the index pertain to direct investments in the stocks or debt instruments of companies listed in the fund's targeted index. This traditional approach of tracking an index allows the fund to maintain a base level of exposure to its chosen segment of the consumer discretionary sector. It serves as a foundational component of the fund's investment strategy, alongside more leveraged instruments.

• Exchange-Traded Funds (ETFs) that Track the Index

ETFs that track the index offer an additional layer of investment, providing diversified exposure to a wide range of companies within the consumer discretionary sector, as identified by the S&P Dow Jones Indices. By incorporating ETFs into its investment strategy, the fund can further diversify its holdings within the prescribed sector, enhancing its ability to achieve leveraged returns in alignment with its investment objective.