Direxion Daily MSCI Mexico Bull 3X Shares Direxion Daily MSCI Mexico Bull 3 (MEXX)

Overview

The Direxion Daily MSCI Mexico Bull 3X Shares (MEXX) seeks daily investment results, before fees and expenses, of 300% of the daily performance of the MSCI Mexico IMI 25/50 Index. It is designed for aggressive investors seeking amplified short-term gains from the Mexican equity market.

Reputation and Reliability

Direxion is a well-known issuer specializing in leveraged and inverse ETFs. They are considered reliable but their products are high-risk.

Management Expertise

Direxion's management team has experience in creating and managing leveraged ETFs, requiring expertise in derivatives and active management.

Goal

To seek daily investment results, before fees and expenses, of 300% of the daily performance of the MSCI Mexico IMI 25/50 Index.

Investment Approach and Strategy

Strategy: The ETF employs a leveraged strategy, aiming to deliver three times the daily performance of the underlying MSCI Mexico IMI 25/50 Index through the use of derivatives.

Composition The ETF's composition primarily consists of financial instruments such as swaps, futures contracts, and other derivatives designed to achieve its 3x leveraged objective, along with a small portion of cash.

Market Share: MEXX has a relatively small market share compared to broader emerging market ETFs.

Total Net Assets (AUM): 30000000

Key Competitors

• EWW
• FLMX

Competitive Landscape

The competitive landscape consists of ETFs tracking Mexican equities, with MEXX offering leveraged exposure. Its advantage is the potential for amplified gains, while its disadvantage is increased risk and decay due to daily resetting.

Historical Performance: Historical performance is highly volatile, reflecting the leveraged nature of the ETF. Past performance is not indicative of future results. Returns are highly sensitive to the underlying index performance.

Benchmark Comparison: The ETF aims to deliver 3x the daily performance of its benchmark, but tracking error and compounding effects can cause deviations over longer periods.

Expense Ratio: 1.17

Average Trading Volume

Average trading volume can vary, and investors should check current data to ensure sufficient liquidity.

Bid-Ask Spread

The bid-ask spread can be wider than non-leveraged ETFs, increasing trading costs.

Market Environment Factors

Economic indicators, political stability, and global market conditions impacting the Mexican economy and stock market will heavily influence MEXX.

Growth Trajectory

Growth trajectory depends entirely on the performance of the Mexican equity market and investor appetite for leveraged products.

Competitive Edge

MEXX offers a unique proposition: a leveraged exposure to the Mexican equity market. This attracts investors seeking high-risk, high-reward opportunities. However, it is crucial to understand the complexities of leveraged ETFs and their potential for significant losses. It is not suitable for all investors, particularly those with a low-risk tolerance or a long-term investment horizon. The fund's daily reset feature makes it unsuitable for holding over extended periods, especially in volatile markets.

Volatility

MEXX exhibits high volatility due to its 3x leverage, making it extremely risky.

Market Risk

The ETF is subject to market risk associated with the Mexican equity market, as well as the risks inherent in leveraged products including compounding and potential for rapid value erosion.

Ideal Investor Profile

MEXX is suitable for sophisticated, short-term traders with a high-risk tolerance who understand the risks of leveraged ETFs and are actively monitoring the Mexican equity market.

Market Risk

MEXX is best suited for active traders with a short-term investment horizon, not for long-term investors or passive index followers.

The Direxion Daily MSCI Mexico Bull 3X Shares (MEXX) is a leveraged ETF designed to provide three times the daily performance of the MSCI Mexico IMI 25/50 Index. It is a high-risk, high-reward investment suitable only for experienced traders seeking short-term gains. Due to its leveraged nature and daily reset, it is prone to volatility and decay. Investors should fully understand the risks before investing, as significant losses are possible.

• EWW
• FLMX

Data Sources:

• Direxion
• MSCI
• SEC Filings
• Yahoo Finance

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investing in leveraged ETFs carries significant risk of loss.