Are Direxion Leveraged & Inverse ETFs for You?
Perhaps if you are a sophisticated, aggressive investor with:
- The willingness to accept substantial losses in short periods of time
- An understanding of the unique nature and performance characteristics of funds which seek leveraged daily investment results
- The time and attention to manage your positions frequently to respond to changing market conditions and fund performance.
Definitely not if you are a conservative investor who:
- Cannot tolerate substantial or even complete losses in short periods of time
- Is unfamiliar with the unique nature and performance characteristics of funds which seek leveraged daily investment results
- Is unable to manage your portfolio actively and make changes as market conditions and fund performance dictate.
Leveraged ETFs are short-term trading vehicles. For example, a Direxion Daily 3X ETF seeks returns that are 300% for a Bull Fund, or -300% in the case of the Bear Funds, of the return of their benchmark index for a single day. The pursuit of a daily leveraged investment goals means that the return of the Funds for a period longer than a single day will be the product of the series of daily leveraged returns for each day during the relevant period. The funds should not be expected to provide three times the return of their benchmark’s cumulative return for periods greater than a day.
All investors should read the Prospectus before investing.