Investor Suitability Self-Assessment

Jul 9 18:23

You may have heard a lot about ETFs lately — exchange-traded funds. ETFs are structured much like mutual funds, but they can be bought and sold on an exchange every day, just like stocks. Direxion offers leveraged ETFs, which are effective tools for intraday trading. They can amplify market exposure while staying flexible amid fast-moving markets.

Jack is a conservative investor who typically follows a buy-and-hold strategy. Jill is a professional investor who trades frequently and can tolerate greater risk. We’ll go into more detail in the next section.

First, let’s take a closer look at leveraged ETFs. Unlike traditional unleveraged ETFs, leveraged ETFs from Direxion and other providers are primarily designed for sophisticated investors who meet the following criteria: first, they fully understand the risks of using leverage; second, they understand the consequences of seeking daily leveraged exposure; third, for inverse ETFs, they understand the risks of short selling; and fourth, they can actively monitor and manage their positions on a daily basis.

Direxion leveraged ETFs are generally not suitable for conservative investors who meet the following profile: first, they cannot withstand significant short-term losses; second, they are not familiar with the characteristics and returns of daily leveraged products; and third, they are long-term investors who cannot monitor their portfolios regularly.

This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. Read more

Investor Suitability Self-Assessment

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