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EDZ

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1d
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1m

Analysis and statistics

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About

EDZ.US refers to Direxion Daily Energy Bear 3X Shares. This ETF is designed to deliver three times the inverse (opposite) of the daily performance of the Energy Select Sector Index. In simpler terms, it is intended to profit when energy stocks, as represented by the underlying index, decline in value. Due to the leverage involved (3x), EDZ is considered a high-risk investment and is most suitable for sophisticated traders seeking short-term exposure to the energy sector's downward movements. It is crucial to understand that the effects of compounding can significantly impact returns over longer periods, potentially deviating substantially from the anticipated inverse performance of the index over more than one trading day.
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Factors

Reverse Leverage: EDZ is a 3x inverse leveraged ETF. Its price moves inversely and magnified compared to the daily performance of the MSCI Emerging Markets Index.

Emerging Market Performance: If emerging markets broadly decline, EDZ should rise. Positive EM performance results in EDZ price decreases.

Daily Resetting: EDZ resets daily. This compounding effect can cause significant divergence between its long-term performance and -3x the cumulative performance of the MSCI EM index, particularly in volatile markets.

Management Fees & Expenses: EDZ has management fees and operating expenses that reduce its returns over time, relative to its targeted inverse leverage.

Supply and Demand: General ETF supply and demand can temporarily impact EDZ's price, especially during periods of high trading volume.

Interest Rates: Changes in interest rates can affect the cost of leverage used by the ETF, influencing its overall performance and price.

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