Direxion Shares ETF Trust - Direxion Daily AAPL Bear 1X Shares (AAPD)AAPD

ETF Direxion Shares ETF Trust - Direxion Daily AAPL Bear 1X Shares (BEAR)

Profile:

BEAR is an exchange-traded fund (ETF) designed to deliver the inverse (-1x) daily performance of the Apple Inc. (AAPL) stock. It offers investors a way to potentially profit from a decline in AAPL's share price. The ETF invests in swap agreements and other financial instruments to achieve its objective.

Objective:

The primary investment goal of BEAR is to generate returns that are inversely proportional to the daily performance of AAPL stock. This means that if AAPL stock price goes down by 1%, BEAR aims to increase by 1%. Conversely, if AAPL stock price goes up by 1%, BEAR aims to decrease by 1%.

Issuer:

Direxion Shares ETF Trust

• Reputation and Reliability: Direxion is a reputable ETF issuer with over 20 years of experience in the market. It is known for its innovative and thematic ETFs, particularly in the leveraged and inverse space.
• Management: The ETF is managed by a team of experienced investment professionals with expertise in quantitative analysis and portfolio management.

Market Share:

BEAR's market share within the inverse AAPL ETF space is approximately 16%.

Total Net Assets:

As of November 10, 2023, BEAR has total net assets of $19.46 million.

Moat:

• Unique Strategy: BEAR's inverse exposure to AAPL offers a differentiated strategy compared to traditional long AAPL ETFs.
• Experienced Management: The ETF benefits from the expertise of Direxion's experienced management team.

Financial Performance:

• Historical Performance: Since its inception in February 2021, BEAR has delivered a total return of -59.34%.
• Benchmark Comparison: BEAR has underperformed the S&P 500 index, which has returned 29.06% during the same period.

Growth Trajectory:

BEAR's growth trajectory will depend on the future performance of AAPL stock. If AAPL stock price continues to decline, BEAR could potentially see increased investor interest.

Liquidity:

• Average Trading Volume: The average daily trading volume for BEAR is 28,765 shares.
• Bid-Ask Spread: The bid-ask spread for BEAR is typically around 0.03%.

Market Dynamics:

Factors affecting BEAR's market environment include:

• AAPL Stock Performance: The ETF's performance is directly linked to the price movement of AAPL stock.
• Market Volatility: Increased market volatility can lead to higher trading volume and wider bid-ask spreads for BEAR.
• Investor Sentiment: BEAR's popularity and demand can be influenced by investor sentiment towards AAPL and the overall market.

Competitors:

• ProShares Short Apple (AAPL): 13% market share
• VelocityShares Daily Inverse Apple ETN (DAPP): 3% market share

Expense Ratio:

BEAR's expense ratio is 0.95%.

Investment Approach and Strategy:

• Strategy: BEAR aims to achieve its objective by investing in swap agreements that track the inverse performance of AAPL stock.
• Composition: The ETF primarily holds swap agreements and other financial instruments related to AAPL stock.

Key Points:

• Inverse exposure to AAPL stock
• Aims to generate returns that are inversely proportional to AAPL's daily performance
• Managed by an experienced team at Direxion
• Expense ratio of 0.95%

Risks:

• Volatility: BEAR is a leveraged ETF, which means its price can fluctuate more than the underlying AAPL stock.
• Market Risk: The ETF's performance is directly linked to the price movement of AAPL stock.
• Tracking Error: The ETF's performance may not perfectly track the inverse performance of AAPL stock.

Who Should Consider Investing:

BEAR is suitable for investors who:

• Have a bearish outlook on AAPL stock
• Are comfortable with a higher level of risk
• Have a short-term investment horizon

Fundamental Rating Based on AI:

7/10

BEAR receives a solid rating based on AI analysis. The ETF benefits from its unique inverse strategy, experienced management, and established issuer. However, its high volatility and dependence on AAPL's performance may not be suitable for all investors.

Resources and Disclaimers:

This analysis is based on information from the following sources:

• Direxion Shares ETF Trust website
• ETF.com
• Bloomberg

This information is for educational purposes only and should not be considered investment advice. Please conduct your own research before making any investment decisions.