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BRZU - Brazil Bull 3X Direxion

Brazil Bull 3X Direxion logoThe Brazil Bull 3X Direxion ETF (BRZU) seeks daily investment results, before fees and expenses, of 300% of the performance of the MSCI Brazil 25/50 Index. This index is a market capitalization-weighted index designed to measure the performance of the large- and mid-cap segments of the Brazilian equity market.

As a leveraged ETF, BRZU is designed to magnify the daily returns of the underlying index by a factor of three. This means that if the MSCI Brazil 25/50 Index rises by 1%, BRZU should rise by 3%, excluding fees and expenses. However, this also means that if the index falls by 1%, BRZU would be expected to fall by 3%.

It is important to note that leveraged ETFs like BRZU are designed for short-term trading, and are not suitable for buy-and-hold strategies. This is because the effects of compounding returns can cause the returns of a leveraged ETF to differ significantly from the returns of the underlying index over longer periods of time.

Investors considering BRZU should also be aware of the risks associated with investing in emerging market equities. Brazil is a developing market and is subject to higher risks compared to developed markets, including political instability, currency fluctuations, and economic volatility. Additionally, leveraged ETFs like BRZU can experience higher volatility and may not be appropriate for all investors.

As of September 2021, BRZU had a net expense ratio of 1.12% and had total net assets of approximately $181 million.

 



 

 

 
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