Direxion Daily Financial Bull 3X ETF

Frequently Asked Questions About FAS

What does FAS invest in?

The Direxion Daily Financial Bull and Bear 3X ETF endeavors to provide daily investment outcomes that are three times (300%) the performance of the Financial Select Sector Index, or three times its inverse, prior to any fees and expenses. It is not guaranteed that the fund will successfully meet its stated objectives.

What is the expense ratio of FAS?

Direxion Daily Financial Bull 3X ETF (FAS) charges an expense ratio of 0.92%. This is the annual fee deducted from fund assets to cover management and operations.

Is FAS a good long-term hold?

FAS 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 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 FAS's daily reset work?

FAS 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 FAS?

Direxion Daily Financial Bull 3X ETF (FAS) manages $2.18B 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 FAS actively managed or an index fund?

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