Direxion Daily NFLX Bear 1X ETF

Frequently Asked Questions About NFXS

What does NFXS invest in?

These Direxion ETFs are structured to provide specific daily returns linked to the performance of Netflix, Inc. (NASDAQ: NFLX) stock. The Direxion Daily NFLX Bull 2X ETF targets daily investment results that are double (200%) the percentage change of Netflix shares. Conversely, the Direxion Daily NFLX Bear 1X ETF aims for daily returns equal to the inverse (opposite) of Netflix's daily stock movement. It's important to note that these objectives are measured prior to the deduction of any fees and expenses.

What is the expense ratio of NFXS?

Direxion Daily NFLX Bear 1X ETF (NFXS) charges an expense ratio of 1.13%. This is the annual fee deducted from fund assets to cover management and operations.

Is NFXS a good long-term hold?

NFXS 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 NFXS's daily reset work?

NFXS 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 NFXS?

Direxion Daily NFLX Bear 1X ETF (NFXS) manages $3.0M 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 NFXS actively managed or an index fund?

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