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Investment expert Jim Woods shares the details on this small fund in the aerospace and defense sector that uses leverage to achieve in a strong performance.

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A Small Fund That Bets Big

Investment expert Jim Woods shares the details on this small fund in the aerospace and defense sector that uses leverage to achieve in a strong performance.

The Direxion Daily Aerospace & Defense Bull 3X Shares ETF (DFEN), with just $43.43 million in assets under management, is a relatively small exchange-traded fund (ETF) in the aerospace and defense sector compared to many peer funds, but it also is triple-leveraged for those seeking to bet big.

DFEN tracks the Dow Jones U.S. Select Aerospace and Defense Index. Unlike many other ETFs, however, DFEN??s objective is to obtain 300% of the return of that index through high leverage, but only for a single day.

Investors should not expect DFEN to provide such a high return for periods greater than a day. Unleveraged exposure to the same index can be found in the iShares Dow Jones US Aerospace & Def ETF (ITA), which is another popular fund in the aerospace and defense field.

Click here to read the rest of the article, “A Small Fund That Bets Big.

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Jim Woods is a freelance financial journalist specializing in the markets and the economy. He champions the cause of liberty from a secured location deep inside the Golden State.

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A Small Fund That Bets Big

The Direxion Daily Aerospace & Defense Bull 3X Shares ETF (DFEN), with just $43.43 million in assets under management, is a relatively small exchange-traded fund (ETF) in the aerospace and defense sector compared to many peer funds, but it also is triple-leveraged for those seeking to bet big.

DFEN tracks the Dow Jones U.S. Select Aerospace and Defense Index. Unlike many other ETFs, however, DFEN’s objective is to obtain 300% of the return of that index through high leverage, but only for a single day.

Investors should not expect DFEN to provide such a high return for periods greater than a day. Unleveraged exposure to the same index can be found in the iShares Dow Jones US Aerospace & Def ETF (ITA), which is another popular fund in the aerospace and defense field.

Click here to read the rest of the article, “A Small Fund That Bets Big.

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