Direxion Daily PANW Bear 1X ETF

Frequently Asked Questions About PALD

What does PALD invest in?

The Direxion Daily PANW Bull 2X ETF and Direxion Daily PANW Bear 1X ETF are investment vehicles engineered to deliver specific daily financial outcomes tied to Palo Alto Networks, Inc. (NASDAQ: PANW) common stock. Excluding fees and operating expenses, the Bull ETF aims to provide twice (200%) the daily return of PANW shares. Conversely, the Bear ETF is designed to achieve daily results that match 100% of the inverse, or opposite, daily performance of the same Palo Alto Networks stock.

What is the expense ratio of PALD?

Direxion Daily PANW Bear 1X ETF (PALD) charges an expense ratio of 2.33%. This is the annual fee deducted from fund assets to cover management and operations.

Is PALD a good long-term hold?

PALD 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 PALD's daily reset work?

PALD 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 PALD?

Direxion Daily PANW Bear 1X ETF (PALD) manages $2.9M 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 PALD actively managed or an index fund?

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