Direxion Daily AVGO Bear 1X Shares

Frequently Asked Questions About AVS

What does AVS invest in?

Under typical market conditions, this fund strategically deploys a substantial portion—at least 80%—of its net assets, along with any borrowed capital, into a range of financial instruments. These tools, including swap agreements and options, are utilized in combination to generate a daily return that is the direct inverse (opposite) of AVGO's performance, aiming for a 1X short exposure to the underlying stock. It is important to note that this fund operates on a non-diversified basis.

What is the expense ratio of AVS?

Direxion Daily AVGO Bear 1X Shares (AVS) charges an expense ratio of 1.21%. This is the annual fee deducted from fund assets to cover management and operations.

Is AVS a good long-term hold?

AVS 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 AVS's daily reset work?

AVS 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 AVS?

Direxion Daily AVGO Bear 1X Shares (AVS) manages $17.7M 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 AVS actively managed or an index fund?

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