Direxion Daily NFLX Bear 1X Shares (NFXS)

Overview

The Direxion Daily NFLX Bear 1X Shares (NFLX) 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 Netflix, Inc. It offers investors a way to potentially profit from a decrease in the price of Netflix shares. It is a leveraged ETF, so the fund may not be suitable for all investors, and should be utilized by investors who understand the risks of daily leveraged ETFs.

Reputation and Reliability

Direxion is a well-known issuer of leveraged and inverse ETFs. They are generally considered reliable but their products carry higher risks.

Management Expertise

Direxion has expertise in managing leveraged and inverse ETFs, requiring specialized risk management.

Goal

Seeks daily investment results, before fees and expenses, of 100% of the inverse (or opposite) of the daily performance of the common stock of Netflix, Inc.

Investment Approach and Strategy

Strategy: The ETF uses a daily leveraged strategy aiming for -1x the daily return of Netflix (NFLX) stock.

Composition The ETF primarily uses financial instruments such as swap agreements, futures contracts, and options to achieve its investment objective.

Market Share: Data not available, as it is highly specific and fluctuates widely.

Total Net Assets (AUM): 31897174

Key Competitors

• None. It's a specific single-stock inverse leveraged ETF.

Competitive Landscape

This ETF is relatively unique in offering a leveraged inverse exposure to a single stock (Netflix). It doesn't have direct competitors offering the same specific exposure.

Historical Performance: Historical performance is highly dependent on the performance of Netflix stock. Due to the leveraged and inverse nature, performance can be highly volatile.

Benchmark Comparison: The ETF's benchmark is -1x the daily return of Netflix stock. Performance should be compared against this inverse benchmark, considering the effect of compounding.

Expense Ratio: 0.95

Average Trading Volume

The average trading volume fluctuates, but typically allows for relatively easy entry and exit for smaller investors.

Bid-Ask Spread

The bid-ask spread can vary, but is usually reasonable given the ETF's focused nature; investors should check the spread before trading.

Market Environment Factors

The ETF is affected by the overall market sentiment towards Netflix, industry trends, and economic conditions.

Growth Trajectory

The ETF's growth is entirely dependent on the demand for inverse exposure to Netflix. The ETF will typically decrease in value during a Netflix uptrend.

Competitive Edge

The ETF's main advantage is its direct leveraged inverse exposure to Netflix, providing a tool for investors to express a bearish view on the company. It offers high leverage which allows investors to amplify potential returns, but with similarly amplified risks. The ETF also allows shorting Netflix without directly shorting the company's stock. Because of its short term nature, investors must understand the intricacies of daily compounding of returns with leveraged ETFs.

Volatility

The ETF is highly volatile due to its leveraged and inverse nature. Small changes in Netflix's stock price can result in large swings in the ETF's value.

Market Risk

The ETF is exposed to the specific risks of Netflix, including competition, regulatory changes, and shifts in consumer preferences. Compounding also can lead to different outcomes than expected over longer periods.

Ideal Investor Profile

This ETF is best suited for sophisticated, short-term traders who have a strong understanding of leveraged and inverse ETFs and a bearish outlook on Netflix.

Market Risk

This ETF is not suitable for long-term investors or those seeking passive index exposure. It is designed for active traders seeking short-term tactical positions.

The Direxion Daily NFLX Bear 1X Shares offers a leveraged way to bet against Netflix stock daily. The ETF is not suitable for buy-and-hold investors because it's designed to provide daily results and long-term returns can diverge significantly. This leveraged inverse fund is only intended for sophisticated investors with a high risk tolerance. It offers potential for quick gains when Netflix declines, but the opposite happens if Netflix stock increases. Investors should fully understand the risks and compounding effects before investing.

• None. This is a unique ETF with its single stock focus and daily leveraged inverse strategy.

Data Sources:

• Direxion Funds website
• Financial news sources

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Consult with a qualified financial advisor before making investment decisions. Leveraged and inverse ETFs carry significant risks and are not suitable for all investors.