About Tza and Tza Trading
The Direxion Daily Small Cap Bear 3X Shares (TZA) is a leveraged inverse ETF designed to return three times the inverse performance of the Russell 2000 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, TZA 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 2000 Index measures the performance of approx. 2,000 small-capitalization companies belonging to the Russell 3000 Index, based on a combination of their market capitalization and current index membership. More than 50% of these companies are from health care, industrial and financial industries, according to data from December 31, 2020.
What is a leveraged inverse ETF?
An inverse ETF is an exchange-traded fund (ETF) formed by using various derivatives and designed to make the most out of a fall in the value of an underlying benchmark. Investing in inverse ETFs works the same way as holding various short positions and involves borrowing securities and selling them, hoping for a later repurchase at a lower price.