(MSFU) Direxion Daily MSFT Bull - Overview

The Direxion Daily MSFT Bull 1.5X Shares (NASDAQ: MSFU) is a leveraged, non-diversified ETF that seeks to deliver **200 % of the daily performance of Microsoft Corp. (MSFT)** by entering into one or more total-return swap agreements with major global banks. The swaps obligate the counterparties to pay the fund the daily return on a notional position equal to twice the fund’s net assets, while the fund pays the financing cost of those swaps. Because the exposure is reset each trading day, the fund’s performance can diverge significantly from 1.5× MSFT over longer horizons due to compounding effects.

Key data points (as of the latest filing) include an **expense ratio of 0.95 %**, **assets under management (AUM) of roughly $150 million**, and an **average daily trading volume of about 1.2 million shares**, indicating moderate liquidity for a niche leveraged product. Microsoft’s **Q4 FY2024 earnings beat expectations**, driven by strong growth in its cloud-computing segment (Azure revenue up 23 % YoY) and expanding AI-powered services-both of which are primary sector drivers for the fund’s underlying exposure.

Macro-level factors that could materially affect MSFU’s performance are **U.S. interest-rate policy** (higher rates increase the cost of financing leveraged positions) and **global corporate-IT spending trends**, especially in the enterprise-software and AI domains where Microsoft competes directly. Investors should also be aware of the **beta of MSFT (~1.1)**, which amplifies market-wide moves in the technology sector.

For a deeper, data-driven breakdown of MSFU’s risk profile and scenario analysis, consider exploring the analytics on ValueRay-your next step toward an evidence-based decision.