TMFE Profile
The Direxion Daily 20+ Year Treasury Bull 3X Shares Fund is designed to provide investors with a leveraged exposure to long-term U.S. Treasury securities. Under normal market conditions, the fund invests at least 80% of its net assets in a range of financial instruments, including swap agreements, U.S. Treasury securities, and exchange-traded funds (ETFs) that track the performance of the index. The fund aims to deliver three times the daily performance of the index it tracks, which consists of U.S. Treasury securities with maturities exceeding 20 years.
The index followed by the fund is a market value-weighted benchmark that includes long-term U.S. Treasury securities, specifically those with remaining maturities greater than 20 years. This index is designed to reflect the performance of long-dated government debt, which is typically sensitive to changes in interest rates. By targeting this segment of the Treasury market, the fund seeks to capitalize on the potential for significant price movements in response to interest rate fluctuations and macroeconomic developments.
To achieve its investment objective, the fund utilizes a variety of financial instruments that provide leveraged exposure. This includes direct investments in Treasury securities and derivatives such as swap agreements. Additionally, the fund may invest in ETFs that track the index or other related indices. The leverage employed is intended to amplify the returns of the index on a daily basis, offering investors the potential for enhanced gains during periods of favorable market conditions for long-term Treasuries.
As a non-diversified fund, the Direxion Daily 20+ Year Treasury Bull 3X Shares Fund focuses its investments primarily in long-term U.S. Treasury securities and related financial instruments. This concentrated approach aims to provide investors with a targeted exposure to the long end of the Treasury yield curve, utilizing leverage to potentially magnify returns. The funds strategy is suitable for investors seeking significant exposure to long-term Treasuries and who are comfortable with the risks associated with leveraged investment products.
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