(FAS) Direxion Daily Financial - Ratings and Ratios

Direxion Daily Financial Bull 3X Shares (FAS) is a leveraged ETF designed to deliver three times the daily return of the Russell 1000 Financial Services Index. It achieves this through a combination of swap agreements, direct holdings of index securities, and ETFs tracking the same index. The fund is non-diversified, meaning it can take larger positions in individual securities, which can amplify both gains and losses.

The underlying index covers a broad swath of the financial sector, including Banks, Thrifts & Mortgage Finance, Diversified Financial Services, Consumer Finance, Capital Markets, Insurance, and Mortgage REITs. This exposure makes FAS particularly sensitive to macroeconomic trends, regulatory changes, and consumer behavior in finance. The fund is domiciled in the United States and managed by Direxion, a well-known issuer of leveraged ETFs.

With over $2.8 billion in assets under management, FAS is one of the larger and more liquid leveraged financial ETFs. However, leveraged funds like FAS are designed for short-term trading rather than long-term holding. The daily reset mechanism means returns over periods longer than a day can diverge significantly from expectations, especially in volatile markets. For sophisticated investors and fund managers, FAS can be a powerful tool for expressing strong views on the financial sector, but it requires careful monitoring and understanding of its risks.

For more details, visit the funds homepage: http://www.direxionfunds.com.