Direxion Daily AMZN Bear 1X Shares (AMZD)

Overview

The Direxion Daily AMZN Bear 1X Shares (AMZN) 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. This ETF provides a way for investors to potentially profit from a decrease in the price of Amazon stock without directly shorting the stock. It focuses solely on Amazon's performance and uses derivatives to achieve its daily inverse return target.

Reputation and Reliability

Direxion is a well-known issuer of leveraged and inverse ETFs, with a track record of providing these types of products to the market. They are known for their expertise in the derivatives market necessary for leveraged and inverse strategies.

Management Expertise

Direxion has a team of experienced professionals managing its ETFs, with expertise in quantitative analysis, derivatives, and portfolio management. Their focus is on delivering the stated daily investment objectives.

Goal

The ETF aims to provide daily investment results, before fees and expenses, corresponding to 100% of the inverse (or opposite) of the daily performance of Amazon stock.

Investment Approach and Strategy

Strategy: The ETF uses a derivatives-based strategy to achieve its daily inverse return target, primarily through swaps, futures contracts, and other derivative instruments.

Composition The ETF's holdings consist primarily of derivative instruments designed to track the inverse daily performance of Amazon stock. It may also hold cash or cash equivalents for operational purposes.

Market Share: The ETF's market share is relatively small since it's a niche product focused on a single company (Amazon) with a short investment time horizon.

Total Net Assets (AUM): 31438273.89

Key Competitors

• TZA
• SQQQ
• LABD

Competitive Landscape

The competitive landscape consists of other inverse and leveraged ETFs, some of which target broader market indices or sectors. AMZN is highly specific to Amazon, offering a more concentrated bet. AMZN provides a focused way to bet against Amazon's daily performance, while competitors like TZA and SQQQ offer broader short exposure to indices like the Russell 2000 and Nasdaq 100, respectively. AMZN offers a niche focus, while its competitors offer broader market coverage.

Historical Performance: Historical performance is highly dependent on the daily price movements of Amazon stock and is characterized by high volatility. Long-term holding is generally not recommended due to the effects of compounding and daily resets.

Benchmark Comparison: The ETF's performance is benchmarked against the inverse daily performance of Amazon stock. Deviations from the target are expected due to fees, expenses, and tracking error.

Expense Ratio: 0.95

Average Trading Volume

The ETF's average trading volume indicates moderate liquidity, which can impact the ease of entering and exiting positions.

Bid-Ask Spread

The bid-ask spread can vary depending on market conditions and trading volume but is typically wider than more liquid, broad-based ETFs.

Market Environment Factors

The ETF's performance is directly impacted by factors affecting Amazon's stock price, including overall market sentiment, economic conditions, sector-specific trends, and company-specific news and events.

Growth Trajectory

The ETF's growth is dependent on investor demand for short-term bearish exposure to Amazon. There are no known changes to its strategy.

Competitive Edge

The Direxion Daily AMZN Bear 1X Shares ETF's advantage lies in providing a straightforward way for investors to bet against the daily performance of Amazon stock without the complexities of short-selling or options. Its niche focus allows for targeted exposure. However, it's essential to recognize that this ETF is designed for short-term tactical trading and is not suitable for long-term investment strategies. The daily reset feature can lead to performance erosion over extended periods, especially in volatile markets.

Volatility

The ETF exhibits high volatility due to its leveraged nature and focus on a single stock. Daily resets amplify price swings.

Market Risk

The ETF is subject to the market risk associated with Amazon stock, including company-specific risks and broader market fluctuations. The leveraged nature of the ETF amplifies these risks.

Ideal Investor Profile

The ideal investor is an experienced trader with a short-term outlook who seeks to profit from daily declines in Amazon's stock price and understands the risks associated with leveraged and inverse ETFs.

Market Risk

The ETF is best suited for active traders with a high-risk tolerance. It is not appropriate for long-term investors or those seeking passive index exposure.

The Direxion Daily AMZN Bear 1X Shares ETF offers a tool for experienced traders to profit from short-term declines in Amazon's stock price. Its leveraged and inverse nature makes it a high-risk, high-reward investment that is not suitable for long-term holdings. Investors should carefully consider their risk tolerance and investment objectives before investing in this ETF, understanding that daily resets and market volatility can significantly impact performance. Its focus on a single company and daily performance adds to the risk profile, requiring active monitoring and management.

Data Sources:

• DirexionShares.com
• etf.com
• Yahoo Finance
• Google Finance

Disclaimers:

This data is for informational purposes only and should not be considered financial advice. Investing in leveraged and inverse ETFs involves significant risks, including the potential for substantial losses. Investors should consult with a qualified financial advisor before making any investment decisions.