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. It offers investors a way to potentially profit from a decrease in the price of Amazon stock. It is designed for short-term trading purposes.

Reputation and Reliability

Direxion is a well-known issuer specializing in leveraged and inverse ETFs. They have a substantial track record, but their products are inherently risky.

Management Expertise

Direxion has a dedicated team managing their ETFs, with experience in creating and managing complex financial products.

Goal

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

Investment Approach and Strategy

Strategy: The ETF uses financial instruments such as swap agreements to achieve its inverse exposure to Amazon stock on a daily basis.

Composition The ETF does not directly hold Amazon stock. Its assets primarily consist of swap agreements and other derivatives to achieve the desired inverse exposure.

Market Share: Data unavailable due to the niche nature of this specific inverse product.

Total Net Assets (AUM): 29350000

Key Competitors

Competitive Landscape

The competitive landscape is limited due to the specific nature of this ETF, which targets a very specific short-term inverse exposure. There are no direct competitors offering the exact same product. The advantages of AMZN are its direct exposure to Amazon's inverse daily performance. A disadvantage is its single-stock risk and the decay inherent in leveraged/inverse ETFs held for longer than a single day.

Historical Performance: Historical performance is highly dependent on Amazon's stock performance and should be analyzed daily rather than long term, due to the daily reset feature.

Benchmark Comparison: The ETF's performance should be compared to the inverse of Amazon's daily stock returns. It is not designed to track any broad market index.

Expense Ratio: 1.04

Average Trading Volume

The average trading volume is moderate, indicating reasonable liquidity for short-term trading.

Bid-Ask Spread

The bid-ask spread can vary depending on market conditions and trading volume, but is generally manageable for active traders.

Market Environment Factors

The ETF's performance is directly correlated to the daily movements of Amazon stock, influenced by factors affecting Amazon, such as economic news, earnings reports, and broader market sentiment.

Growth Trajectory

The ETF's trading volume and AUM fluctuate with Amazon's stock price volatility and investor sentiment towards shorting Amazon.

Competitive Edge

The Direxion Daily AMZN Bear 1X Shares ETF provides a targeted approach to betting against Amazon's stock on a daily basis. Its narrow focus and leveraged nature give it a specific advantage. It is a specialized tool for sophisticated traders with a view of Amazon's immediate stock direction. It provides an inverse exposure to Amazon, which allows investors to express a bearish outlook without directly shorting the stock.

Volatility

The ETF is highly volatile due to its inverse leverage and dependence on a single stock. Returns decay significantly if held for more than one day.

Market Risk

The primary market risk is related to Amazon's stock performance. If Amazon stock increases, the ETF will likely decline. In addition, the daily reset can lead to significant losses over longer holding periods due to compounding effects.

Ideal Investor Profile

This ETF is suited for sophisticated traders who have a short-term bearish outlook on Amazon stock and understand the risks associated with leveraged and inverse ETFs.

Market Risk

This ETF is designed for active traders with a short-term (daily) focus and is unsuitable for long-term investors due to its inherent decay.

The Direxion Daily AMZN Bear 1X Shares ETF is a high-risk, high-reward tool designed for short-term traders who want to bet against Amazon. It offers a straightforward inverse exposure to the daily performance of Amazon's stock. Its daily reset mechanism makes it unsuitable for long-term buy-and-hold strategies. Investors should be aware of the potential for significant losses due to volatility and compounding effects. This ETF is best used by experienced traders with a deep understanding of leveraged and inverse products.

Data Sources:

• DirexionShares.com
• Bloomberg
• SEC Filings

Disclaimers:

This data is for informational purposes only and should not be considered financial advice. Investing in leveraged and inverse ETFs involves significant risk of loss.