Direxion Daily Small Cap Bear 3X Shares company info

What does Direxion Daily Small Cap Bear 3X Shares do?
Direxion Daily Small Cap Bear 3X Shares (NYSEARCA:TZA) is an exchange-traded fund that primarily focuses on seeking daily investment results, before fees and expenses, of 300% of the inverse of the daily performance of the Russell 2000 Index. Direxion Daily Small Cap Bear 3X Shares aims to achieve its objectives through derivatives tied to the small-cap sector, showing an aggressive stance for investors betting against the short-term performance of small-cap U.S. companies. The fund caters to active, experienced traders who understand the risks and potential rewards associated with leveraged and inverse investment strategies. The objective revolves around providing a tool for those looking to hedge against or anticipate declines in the small-cap market segment, with the emphasis on achieving significant inverse leverage on a daily basis.
Direxion Daily Small Cap Bear 3X Shares company media
Company Snapshot

Is Direxion Daily Small Cap Bear 3X Shares a public or private company?

key
Ownership
Public

How many people does Direxion Daily Small Cap Bear 3X Shares employ?

people
Employees
56

What sector is Direxion Daily Small Cap Bear 3X Shares in?

pie chart
Sector
ETF

Where is the head office for Direxion Daily Small Cap Bear 3X Shares?

location pin
Head Office
New York, United States

What year was Direxion Daily Small Cap Bear 3X Shares founded?

founded flag
Year Founded
2008
What does Direxion Daily Small Cap Bear 3X Shares specialise in?
/Leveraged ETF /Bear Market /Small Cap /Stock Trading /Investment Strategy /Financial Services

What are the products and/or services of Direxion Daily Small Cap Bear 3X Shares?

Overview of Direxion Daily Small Cap Bear 3X Shares offerings
Inverse Daily Returns (3x Magnified): TZA seeks daily investment results that are -3 times (3x inverse) the daily return of the Russell 2000® Index. This means if the Russell 2000® Index goes up by 1% in a day, TZA would aim to go down by about 3%. Conversely, if the Russell 2000® Index goes down by 1% in a day, TZA would aim to go up by about 3%.
Short-Term Trading Focus: TZA is designed for short-term trading due to the compounding effect of its inverse daily return strategy. Holding it for long periods might not deliver the intended results as negative returns on some days can be magnified over time.
Potential Profit in Downturns: If you believe the Russell 2000® Index, and consequently the U.S. small-cap stock market, will decline in value, TZA can be a tool to potentially profit from that downturn. However, keep in mind that if the Russell 2000® Index increases in value, TZA would lose value.
Volatility Magnification: The 3x inverse magnification amplifies the daily movements of the Russell 2000® Index, resulting in potentially larger gains but also larger losses compared to an ETF directly tracking the index.
Leveraged ETF: TZA is a leveraged ETF, which means it uses financial instruments like swaps to magnify returns (or losses). Leverage can increase potential returns but also significantly increase potential risks.
Passive Management: TZA likely uses financial instruments to achieve its inverse daily return objective. The holdings are automatically adjusted to maintain the target leverage ratio, potentially resulting in lower fees compared to actively managed inverse ETFs.