Direxion, a leading provider of exchange-traded funds (ETFs), has unveiled plans to escalate the leverage and risk level of six of its single stock daily leveraged ETFs. This strategic adjustment, effective on or around April 2, 2024, will elevate these ETFs to seek daily leveraged investment results of 200% of the daily performance of their respective underlying securities, a notable increase from the current 150%. The ETFs impacted by this change include Direxion Daily AAPL Bull 2X Shares (AAPU), Direxion Daily AMZN Bull 2X Shares (AMZU), Direxion Daily GOOGL Bull 2X Shares (GGLL), Direxion Daily MSFT Bull 2X Shares (MSFU), Direxion Daily NVDA Bull 2X Shares (NVDU), and Direxion Daily TSLA Bull 2X Shares (TSLL), each tracking major tech giants like Apple Inc., Amazon.com, Inc., Alphabet Inc., Microsoft Corporation, NVIDIA Corporation, and Tesla, Inc., respectively.
According to Direxion, this heightened leverage is designed to magnify both the potential gains and losses relative to the performance of each ETF's underlying security. The company emphasizes that these products are tailored for investors who possess a thorough understanding of the risks tied to leveraged investments and who are diligent in monitoring and managing their positions. More details on the risks and objectives of these ETFs can be found in the Direxion Leveraged and Inverse ETF Education Center.
Founded in 1997 and managing approximately $38.1 billion in assets as of December 31, 2023, Direxion specializes in offering ETF solutions that cater to specific market perspectives and risk exposure management. The firm advises that while these ETFs are designed to meet their investment objectives, there is no assurance of success. Investors are urged to meticulously review the risks, charges, and expenses detailed in the prospectus and summary prospectus before making any investment decisions.
