Direxion Daily AAPL Bear 1X ETF

Frequently Asked Questions About AAPD

What does AAPD invest in?

The Fund seeks daily investment results, before fees and expenses, of 100% of the inverse of the daily performance of AAPL. The Fund invests in financial instruments, including swap agreements and options that provide inverse or short leveraged exposure to AAPL equal to at least 80% of the Funds net assets.

What is the expense ratio of AAPD?

Direxion Daily AAPL Bear 1X ETF (AAPD) charges an expense ratio of 0.96%. This is the annual fee deducted from fund assets to cover management and operations.

Is AAPD a good long-term hold?

AAPD is a inverse fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple, typically with negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days.

How does AAPD's daily reset work?

AAPD rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level, so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets.

How big is AAPD?

Direxion Daily AAPL Bear 1X ETF (AAPD) manages $23.0M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is AAPD actively managed or an index fund?

AAPD's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.