Curated News
By: NewsRamp Editorial Staff
March 26, 2024

Direxion Increases Leverage and Risk Level of Single Stock ETFs

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Original Source

TLDR

  • Direxion will increase leverage and risk level of six single stock ETFs, potentially leading to greater gains and losses.
  • Effective on or around April 2, 2024, each of the ETFs will seek daily leveraged investment results of 200% of the daily performance of the ETF’s underlying security.
  • The changes may enable greater potential gains, but also subject investors to the risk of greater losses relative to the performance of each Fund's respective underlying security.
  • Direxion is increasing leverage and risk level of six single stock ETFs, potentially impacting investors' gains and losses in the future.

Impact - Why it Matters

This news is crucial for investors, as it signifies a significant change in the risk and potential gains of six single stock ETFs offered by Direxion. The increased leverage and risk level could lead to greater profits for investors, but also exposes them to the possibility of greater losses. Investors need to carefully consider these changes and evaluate whether they align with their investment strategy and risk tolerance.

Summary

Direxion announced on February 2, 2024, it will increase the leverage point and risk level of six single stock ETFs. The changes will heighten the risk of any investment in a Fund because they will result in an increase in the Fund's leverage. Effective on or around April 2, 2024, each of the ETFs will seek daily leveraged investment results, before fees and expenses, of 200% of the daily performance of the ETF's underlying security. Because each Fund will seek to magnify the daily performance of its respective underlying security to a greater extent under its new investment objective, each Fund will have the potential for greater gains, but will also be subject to the risk of greater losses relative to the performance of each Fund's respective underlying security.

Source Statement

This curated news summary relied on content disributed by News Direct. Read the original source here, Direxion Increases Leverage and Risk Level of Single Stock ETFs

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