FAZ & FAS = Risky

One of the reasons the FAZ and FAS ETFs are so widely popular is because they focus on the troubled financial sector. They aim to return 300% of the return of the Russell 1000 Financial Index (FAZ is for the bears, FAS is for the bulls), which is pretty extreme when you consider how volatile the financials have currently been the past many months.

Direxion does not hide the fact that these are high-risk trading vehicles. Here’s a small excerpt from the prospectus:

“These ETF’s are clearly high-risk vehicles, and the fund family’s prospectus (does anybody read these) states the following:The Funds are intended to be used as short-term trading vehicles. The pursuit of leveraged investment goals means that the Funds are riskier than alternatives which do not use leverage.”

FAS closed Friday at 8.41
FAS March low was at 2.64
So, the gain in FAS for the period was 218%

FAZ closed Friday at 8.28
FAZ March high was 104.07
So, the loss for FAZ for the period was 92%

There are no “magic bullets” for making money in the market. It is usually a matter of finding the right tool for the right opportunity. Knowing what alternatives are available will help you make the right choice for your portfolio and strategic objectives. MarketClub Education Page Click Here You can also enter FAZ or FAS below for a free no strings attached analysis of the companies.

Be sure you read “Another Look at 3x leveraged ETF’s” as I list more ideas of 3x leveraged ETF’s from Direxion. Another great article is “Why Levered ETFs Will Eat Your Money” Also Direxion is at it again with triple-leverage ETFs. If you love trading the financial stocks for triple leverage via the Direxion Financial Bull 3X Shares (NYSE: FAS) or shorting them with triple leverage via the Direxion Financial Bear 3X Shares (NYSE: FAZ), then you have some new trading vehicles to use for bonds. You can now be long or short the US 10-Year or US 30-Year Treasury Bonds. Source 24/7.

Direxion Daily 10-Year Treasury Bull 3X Shares (NYSE: TYD)
Direxion Daily 10-Year Treasury Bear 3X Shares (NYSE: TYO
Direxion Daily 30-Year Treasury Bull 3X Shares (NYSE: TMF)
Direxion Daily 30-Year Treasury Bear 3X Shares (NYSE: TMV)

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