About Fas and Fas Trading
The Direxion Daily Financial Bull 3X Shares (FAS) is a leveraged ETF designed to return three times the performance of the Russell 1000 Financial Services Index ("Financial Index") on a day to day basis. However, it would help if you always kept in mind that there is no guarantee the funds will meet their stated investment objective. As a levered product, FAS is perceived as a short-term tactical instrument. The fund rebalances daily. Over more extended periods, returns can vary significantly from 3x exposure to its underlying index.
The Russell 1000 Financial Services Index is a subdivision of the Russell 1000 Index that measures securities' performance from the financial services sector of the large-capitalization U.S. equity market. This includes companies from banking, mortgage, consumer finance, specialized finance, investment banking and brokerage, asset management and custody, corporate lending, insurance, financial investments, and real estate, and more.
What is a leveraged ETF?
A leveraged exchange-traded fund (ETF) defines a type of financial product created to track an underlying index at higher rates of return. Such instruments can offer returns as high as two or three times the returns of a traditional ETF but at increased risks.
Leveraged ETFs cover the securities in the underlying index but also include derivatives of the securities and the index itself. These derivatives can be options, forward contracts, swaps, and futures. In other words, leveraged ETFs can be tied to different industry sectors, commodities, or currencies, just as regular ETFs can be.