Direxion Daily Cloud Computing Bear 2X Shares

Frequently Asked Questions About CLDS

What does CLDS invest in?

The fund, under normal circumstances, invests in swap agreements, futures contracts, short positions or other financial instruments that, in combination, provide inverse (opposite) or short leveraged exposure to the index equal to at least 80% of the fund's net assets (plus borrowing for investment purposes). 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 CLDS?

Direxion Daily Cloud Computing Bear 2X Shares (CLDS) charges an expense ratio of 0.99%. This is the annual fee deducted from fund assets to cover management and operations.

Is CLDS a good long-term hold?

CLDS 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 CLDS's daily reset work?

CLDS 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 CLDS?

Direxion Daily Cloud Computing Bear 2X Shares (CLDS) manages $16.1M 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 CLDS actively managed or an index fund?

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