 The
Direxion Cloud Computing 2X Leveraged ETF (CLDL) is an exchange-traded
fund that aims to provide investors with twice the daily return of the
Indxx USA Cloud Computing Index. The fund uses leverage to achieve its
goal, which means that it holds a combination of assets, including
derivatives, to amplify its returns.
The Indxx USA Cloud
Computing Index is composed of U.S. companies that provide cloud
computing software, infrastructure, platforms, and services. This
includes companies that offer cloud-based storage, computing, and
networking services, as well as those that specialize in security,
artificial intelligence, and big data analytics.
By investing
in CLDL, investors can gain exposure to a diversified portfolio of
cloud computing companies with a single trade. However, it's important
to note that the fund's use of leverage increases its risk profile,
and it may not be suitable for all investors. As with any leveraged
ETF, investors should closely monitor their positions and be prepared
to act quickly if market conditions change.
The fund has an
expense ratio of 0.45% and is traded on the NYSE Arca exchange. Its
holdings are rebalanced and reconstituted quarterly. As of September
2021, some of the top holdings in the fund included Zoom Video
Communications, DocuSign, and Twilio.
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