YANG Profile
The Direxion Daily FTSE China Bear 3X Shares is designed to provide investors with a leveraged inverse exposure to the performance of the FTSE China 50 Index. Under normal market conditions, the fund achieves this objective by investing in a combination of swap agreements, futures contracts, short positions, and other financial instruments. These investments are structured to deliver inverse (opposite) or short leveraged returns equivalent to at least 80% of the fund's net assets, including any borrowed funds used for investment purposes.
The FTSE China 50 Index, which the fund tracks inversely, is comprised of the 50 largest and most liquid publicly traded Chinese companies listed on the Hong Kong Stock Exchange. This index represents a significant portion of the Chinese equity market, focusing on companies with high market capitalization and liquidity. By targeting this index, the fund aims to offer investors a means to benefit from declines in the value of major Chinese stocks.
The Direxion Daily FTSE China Bear 3X Shares is an actively managed exchange-traded fund (ETF) that employs leverage to amplify the inverse returns of the underlying index. The use of leverage involves borrowing funds to increase the potential return of the investment, but it also magnifies the risk of losses. As such, this fund is suited for sophisticated investors who seek to hedge against declines in Chinese equities or speculate on falling markets.
Given its strategy of providing triple leveraged inverse exposure, the fund is intended for short-term trading and may not be suitable for long-term investment horizons. The daily rebalancing required to maintain the targeted leverage ratio can lead to performance deviations over longer periods, especially in volatile or trending markets. Investors should carefully consider their investment objectives and risk tolerance before investing in this fund.
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