Direxion Daily Cloud Computing Bull 2X Shares

Frequently Asked Questions About CLDL

What does CLDL invest in?

The fund, under normal circumstances, invests at least 80% of its net assets in financial instruments, such as swap agreements, securities of the index, ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or to ETFs that track the index. The index is provided by Indxx, LLC and includes domestic companies that deliver cloud computing infrastructure, platforms, or services. The fund is non-diversified.

What is the expense ratio of CLDL?

Direxion Daily Cloud Computing Bull 2X Shares (CLDL) charges an expense ratio of 1.63%. This is the annual fee deducted from fund assets to cover management and operations.

Is CLDL a good long-term hold?

CLDL is a leveraged 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 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 CLDL's daily reset work?

CLDL 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 CLDL?

Direxion Daily Cloud Computing Bull 2X Shares (CLDL) manages $5.3M 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 CLDL actively managed or an index fund?

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