Direxion Daily AMZN Bear 1X Shares (AMZD)

Overview

The Direxion Daily AMZN Bear 1X Shares (AMZD) 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 offers a way for investors to potentially profit from a short-term decline in Amazon's stock price.

Reputation and Reliability

Direxion is a well-known issuer specializing in leveraged and inverse ETFs, generally considered reliable for providing exposure as stated in their prospectuses.

Management Expertise

Direxion has a dedicated team experienced in managing leveraged and inverse ETFs, focusing on daily rebalancing and market monitoring.

Goal

The investment 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.

Investment Approach and Strategy

Strategy: The ETF employs a strategy of using financial instruments such as swap agreements, futures contracts, and options to achieve its daily inverse target. It does not directly hold Amazon stock.

Composition The ETF's assets primarily consist of derivatives designed to mimic the inverse daily performance of Amazon stock.

Market Share: Data not readily available for specific market share.

Total Net Assets (AUM): 13480000

Key Competitors

• Individual short positions in AMZN
• Options contracts on AMZN

Competitive Landscape

The competitive landscape is unique as AMZD is a specialized inverse ETF. Its primary competition is not from other ETFs, but rather from investors who choose to short Amazon directly or use options strategies. AMZD offers a potentially simpler way to achieve inverse exposure for short-term trading. AMZD's daily reset feature can be a disadvantage for longer-term holdings.

Historical Performance: Historical performance data is crucial for assessing leveraged/inverse ETFs. Due to the daily reset, performance is not meant to be tracked long-term and can deviate significantly from the simple inverse of Amazon's stock price over extended periods.

Benchmark Comparison: The ETF aims to match the inverse daily return of Amazon, making Amazon's daily performance its de facto benchmark. Long-term comparison is not relevant due to compounding effects.

Expense Ratio: 0.95

Average Trading Volume

Average trading volume for AMZD is typically moderate, which may affect the ease of entering and exiting positions, so check daily volume before trading.

Bid-Ask Spread

The bid-ask spread can vary depending on market conditions and demand, but may be wider than more liquid ETFs, increasing the cost of trading.

Market Environment Factors

AMZD's performance is highly sensitive to the daily price fluctuations of Amazon's stock, influenced by broader market sentiment, sector news, and company-specific events.

Growth Trajectory

Growth depends on the perceived short-term bearish outlook for Amazon. Strategy and holdings are adjusted daily to maintain the 1x inverse target.

Competitive Edge

AMZD offers a readily accessible, leveraged, and inverse investment tool focused solely on Amazon's stock. This specialized focus differentiates it from broader market or sector-based inverse ETFs. The ETF is designed for short-term tactical positions, allowing traders to quickly express a bearish view on Amazon. Its simplicity can be appealing to investors seeking direct inverse exposure without the complexities of shorting stock or using options, although they should be aware of daily reset.

Volatility

AMZD is highly volatile due to its inverse and daily rebalancing nature. Significant losses can occur if Amazon's stock price rises.

Market Risk

The primary risk is the potential for Amazon's stock to increase in value, leading to losses in the ETF. The daily reset feature can exacerbate losses over longer periods.

Ideal Investor Profile

AMZD is suitable for sophisticated investors and active traders with a short-term bearish outlook on Amazon. Investors should understand the risks of leveraged and inverse ETFs and use them for tactical purposes.

Market Risk

AMZD is not suitable for long-term investors. It is designed for short-term trading strategies to capitalize on anticipated daily declines in Amazon's stock price.

The Direxion Daily AMZN Bear 1X Shares (AMZD) is a specialized ETF designed to provide a daily inverse return of Amazon's stock. It's a tool for short-term traders with a bearish view on Amazon. The ETF is high-risk due to its leverage and daily rebalancing. It's not suitable for long-term investors but rather those seeking tactical, short-term exposure.

Data Sources:

• Direxion Funds website
• ETF.com
• Yahoo Finance

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Leveraged and inverse ETFs are complex instruments and are not suitable for all investors. Past performance is not indicative of future results.