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If you're bullish on small-cap stocks, it might seem like a good idea to buy shares of a leveraged ETF like the Direxion Daily Small Cap Bull 3X Shares ETF (TNA 0.27%) in order to magnify your returns.
With the S&P 500 back in positive territory after April's tariff tantrum, small-caps have yet to catch up. When the uptrend starts or stalls, Direxion Investments has a pair of leveraged/inverse funds to ponder for small-cap plays.
Tech giants roared, adding to strong market gains last week. Tariff fears cooled a bit, though uncertainty remains.
Weekly options are the ideal investment for turning small amounts of money into large amounts.
Direxion Daily Small Cap Bull 3X Shares (TNA) is a triple leveraged ETF tracking the Russell 2000, aiming for 300% of daily benchmark movement. Despite long-term bullishness on the Russell 2000, current market volatility necessitates caution with TNA, emphasizing short-term holding strategies. Leveraged ETFs like TNA are best held short-term due to volatility and loss recoupment risks, making them suitable for playing market catalysts.
The stock market has been in a tumultuous, volatile state lately — and one U.S. politician is betting that small-cap stocks will see the best returns going forward.
A new presidential administration and an inflection point for the Federal Reserve are adding a high degree of uncertainty to the market. That could bring forth heightened volatility.
The Direxion Daily Small Cap Bull 3X Shares ETF seeks to deliver 300% (3x) the return of the Russell 2000 index. Russell 2000 components currently trade at a trailing earnings yield of roughly 6.2%, well above the S&P 500's 4.10% forward earnings yield. The outlook for Russell 2000 earnings growth is bright thanks to a strong US economy, a low payout ratio, and benefits from Fed policy normalization.
With large-caps getting most of 2024's attention, traders may be overlooking one area that could offer opportunities. In the Fed's rate-cutting cycle, traders may also want to pay attention to midcaps.
The 'Undercovered' Dozen ETF edition highlights less covered ETFs, focusing on seven in-depth analyses and five brief mentions, from articles published between August 15th and September 16th. The Invesco Russell 1000 Dynamic Multifactor ETF (OMFL) has shown volatility but is stabilizing; patience is advised by The Sunday Investor as its high-quality selections might perform well. The SPDR Portfolio S&P 500 High Dividend ETF (SPYD) offers a 4.07% yield but lacks complexity according to MacroGirl; consider alternatives like PEY.