Direxion Daily AMZN Bear 1X Shares (AMZD)

Overview

The Direxion Daily AMZN Bear 1X Shares (AMZN) is an exchange-traded fund that seeks daily investment results, before fees and expenses, of 100% of the inverse (or opposite) of the daily performance of the common stock of Amazon.com, Inc.

Reputation and Reliability

Direxion is a well-known issuer of leveraged and inverse ETFs, with a history of providing such products for various sectors and indices. Their reputation is generally good, though these types of ETFs are considered high-risk.

Management Expertise

Direxion has a team of experienced professionals managing their ETFs, focusing on tracking the underlying indices or providing the desired leveraged or inverse exposure.

Goal

To seek daily investment results, before fees and expenses, of 100% of the inverse (or opposite) of the daily performance of the common stock of Amazon.com, Inc.

Investment Approach and Strategy

Strategy: The ETF employs a daily inverse strategy, aiming to deliver the opposite of Amazon's daily stock performance. It does not aim to track long-term performance.

Composition The ETF uses derivatives and other financial instruments to achieve its inverse exposure to Amazon's stock.

Market Share: Data unavailable to provide specific market share due to the highly niche nature of the fund and market data limitations.

Total Net Assets (AUM): 26470603

Key Competitors

• SMHB

Competitive Landscape

The competitive landscape is relatively limited for single-stock leveraged/inverse ETFs. AMZN and its competitor aim to provide short-term tactical exposure to Amazon's stock. These ETFs are not meant for long-term holdings due to the effects of compounding and daily resets. Advantages depend on investor's need for immediate exposure, while disadvantages include decay and high volatility.

Historical Performance: Historical performance is highly dependent on Amazon's stock performance and is subject to daily compounding effects. It is crucial to note that daily inverse ETFs are designed for short-term tactical trading and are not suitable for buy-and-hold strategies.

Benchmark Comparison: The ETF's performance should be compared against the inverse of Amazon's daily stock performance. Deviations may occur due to fees, expenses, and trading inefficiencies.

Expense Ratio: 0.95

Average Trading Volume

The ETF exhibits moderate liquidity, influenced by the interest in Amazon's stock; further information needs to be gathered to provide exact number.

Bid-Ask Spread

The bid-ask spread may vary depending on market conditions and trading volume. It is typically wider than more liquid ETFs, which can impact trading costs; further information needs to be gathered to provide exact number.

Market Environment Factors

Economic indicators, Amazon-specific news, sector trends, and overall market sentiment can all impact the ETF's performance. Changes in investor confidence and trading activity in AMZN directly affect the ETF.

Growth Trajectory

The growth trajectory depends on the demand for short-term inverse exposure to Amazon. The fund's strategy and holdings are primarily driven by its daily reset mechanism rather than active portfolio management.

Competitive Edge

Direxion's competitive advantage lies in its established presence in the leveraged and inverse ETF market. The fund provides a straightforward way for investors to gain short-term inverse exposure to Amazon's stock. This can be attractive to traders looking to capitalize on short-term declines in the stock's price. However, the daily reset mechanism and associated risks require careful understanding and active monitoring.

Volatility

The ETF is highly volatile due to its inverse and daily reset nature. It is subject to amplified price swings and can experience significant losses if Amazon's stock performs contrary to expectations.

Market Risk

The ETF is subject to the market risk associated with Amazon's stock and overall market conditions. Additionally, the daily reset feature can lead to significant value erosion over time, especially in volatile markets.

Ideal Investor Profile

The ideal investor is an experienced trader with a high-risk tolerance who seeks short-term, tactical exposure to the inverse performance of Amazon.com, Inc.

Market Risk

The ETF is suitable for active traders who understand the risks associated with leveraged and inverse ETFs. It is not suitable for long-term investors or those seeking passive index exposure.

The Direxion Daily AMZN Bear 1X Shares is a specialized ETF designed for short-term tactical trading, seeking to provide the inverse of Amazon's daily stock performance. It is a high-risk investment due to its daily reset mechanism and leveraged nature. The fund is suitable for experienced traders with a high-risk tolerance who understand the complexities of inverse ETFs. Long-term investors should avoid this ETF due to potential value erosion over time.

• SMHB
• YANG
• FAZ
• SQQQ
• TZA

Data Sources:

• Direxion
• SEC Filings
• Financial News Outlets
• ETF Database
• FactSet

Disclaimers:

The information provided is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Leveraged and inverse ETFs are complex instruments and involve a high degree of risk.