Direxion Daily AMZN Bear 1X Shares (AMZD)

Overview

The Direxion Daily AMZN Bear 1X Shares (AMZD) 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.

Reputation and Reliability

Direxion is a well-known issuer of leveraged and inverse ETFs, known for providing targeted investment exposures.

Management Expertise

Direxion's management team has experience in creating and managing complex ETF products.

Goal

To seek 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.

Investment Approach and Strategy

Strategy: The ETF employs a daily rebalancing strategy to achieve its investment objective, using financial instruments such as swap agreements, futures contracts, and options on securities.

Composition The ETF's assets consist primarily of derivatives designed to provide inverse exposure to Amazon (AMZN) stock.

Market Share: AMZD has a niche market share as it targets very short-term traders focusing on Amazon's daily price movements.

Total Net Assets (AUM): 2601058

Key Competitors

• ProShares Short QQQ (PSQ)
• MicroSectors FANG+ Index -3X Inverse Leveraged ETN (BERZ)

Competitive Landscape

The competitive landscape consists of inverse ETFs targeting broader indices like the Nasdaq 100 and leveraged inverse ETFs targeting the FANG+ stocks. AMZD's advantage lies in its specific focus on Amazon, but it carries greater risk due to its inverse leveraged nature and single-stock concentration. It is not a market share leader.

Historical Performance: Due to the leveraged and inverse nature, historical performance is highly volatile and path-dependent. It is not intended for long-term investment.

Benchmark Comparison: There is no direct benchmark; performance is measured against the inverse daily performance of Amazon stock.

Expense Ratio: 0.95

Average Trading Volume

The average daily trading volume is relatively low, which can impact trade execution, estimated at around 11,000.

Bid-Ask Spread

The bid-ask spread can be wider than more liquid ETFs, reflecting its niche focus and leverage.

Market Environment Factors

Amazon's stock performance, overall market sentiment, and economic conditions all influence AMZD's price. News related to AMZN has a large short-term effect.

Growth Trajectory

The ETF's growth depends on the demand for short-term inverse exposure to Amazon stock and is not designed for long-term buy and hold.

Competitive Edge

AMZD's competitive edge is its targeted exposure to the inverse daily performance of Amazon, offering traders a specific tool to profit from short-term declines in AMZN. This specialization allows investors a focused approach to shorting AMZN without directly shorting the stock. However, its leveraged nature and daily rebalancing can lead to performance drag over longer periods, making it suitable for sophisticated traders only. Its niche focus is both an advantage and a disadvantage as it limits its appeal to a smaller subset of investors.

Volatility

AMZD exhibits high volatility due to its leveraged and inverse nature.

Market Risk

The primary risk is the volatility of Amazon stock and the potential for losses due to the daily rebalancing and compounding effect of leveraged ETFs. Single-stock risk is very high.

Ideal Investor Profile

Sophisticated traders with a high-risk tolerance who seek short-term inverse exposure to Amazon stock.

Market Risk

Suitable for active traders with a short-term horizon, not for long-term investors.

Direxion Daily AMZN Bear 1X Shares (AMZD) is a leveraged inverse ETF designed for short-term trading strategies focused on Amazon's daily price movements. It provides -1x exposure to the daily performance of Amazon. This ETF is highly volatile and is not suitable for long-term investment. It is best suited for sophisticated traders who understand the risks associated with leveraged and inverse ETFs and actively monitor their positions.

Data Sources:

• Direxion website
• SEC filings
• Yahoo Finance
• etf.com

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investing in leveraged ETFs involves significant risks, including the potential for substantial losses.