Direxion Daily PANW Bear 1X ETF (PALD)

Direxion Daily PANW Bear 1X ETF (PALD) seeks daily investment results, before fees and expenses, equal to the inverse (-1x) of the daily percentage change in the share price of Palo Alto Networks (PANW). It is a single-stock ETF sponsored by Direxion, designed to move opposite to Palo Alto Networks on a given trading day.

The underlying company, Palo Alto Networks, is a cybersecurity company, based in Santa Clara, California, that sells network firewalls, cloud security and security operations software and services. The fund does not usually own the reference shares outright in the required amount; instead it obtains its exposure mainly through derivatives such as swap agreements, backed by cash and short-term Treasury holdings.

Because the fund rebalances to its target inverse exposure every day, its stated multiple applies to a single day only. Over periods longer than one day, compounding means the fund's cumulative return can differ significantly from -1 times the stock's return over the same period, particularly when the share price is volatile.