What does Direxion Daily MSCI Emerging Markets Bull 3X Shares do?

Direxion Daily MSCI Emerging Markets Bull 3X Shares (NYSE:EDC) is a financial instrument designed to provide investors with leveraged exposure to the performance of the MSCI Emerging Markets Index. It aims to deliver three times the daily investment results, before fees and expenses, of the Index, which represents medium and large-cap companies across various emerging markets. As a leveraged exchange-traded fund (ETF), it primarily targets investors looking for short-term gains through bullish positions on emerging market equities. Direxion Daily MSCI Emerging Markets Bull 3X Shares focuses on capitalizing on daily market movements, making it particularly appealing to more speculative traders who actively manage their positions. The objective is to magnify the investment outcomes for those who predict positive daily performance in emerging market sectors, while also bearing the risks associated with leveraged investing.
Direxion Daily MSCI Emerging Markets Bull 3X Shares company media

Company Snapshot

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Ownership

Public
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Employees

56
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Sector

ETF
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Head Office

Newton, United States
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Year Founded

2008

What does Direxion Daily MSCI Emerging Markets Bull 3X Shares specialise in?

/Leveraged ETF /Emerging Markets /Investment Management /Financial Services /Daily Reset /High Risk

What are the products and/or services of Direxion Daily MSCI Emerging Markets Bull 3X Shares?

Overview of Direxion Daily MSCI Emerging Markets Bull 3X Shares offerings
Targets Emerging Markets Equities: EDC seeks to track the daily performance of the MSCI Emerging Markets Index, which provides exposure to stocks listed in developing countries around the world.
Delivers 3x Daily Bullish Returns: The key feature of EDC is its leverage. It aims to deliver returns that are three times (3x) the daily return of the underlying index. In simpler terms, if the Emerging Markets Index goes up by 1% in a day, EDC would aim to go up by approximately 3%.
Seeks to Capitalize on Bull Markets: EDC is designed to benefit when the overall performance of emerging market stocks is positive. Investors might use EDC for short-term bets on potential growth in emerging economies.
Magnified Volatility: Leveraged ETFs like EDC experience magnified volatility compared to the underlying index. This means small movements in the index can result in larger swings in the price of EDC.
Not for Long-Term Investment: Due to the compounding effect of leverage, EDC may not be suitable for long-term investment strategies. The effects of leverage can be amplified over extended periods, potentially leading to unexpected outcomes.
Expense Ratio: EDC has an expense ratio, a fee that covers the cost of operating the ETF. It's important to understand this cost before investing in EDC. You can find the expense ratio on the Direxion Investments website or other financial websites.