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Intro to Leveraged & Inverse ETFs

Lesson 1 of 5
Duration 2:18
Level Intermediate
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This Lesson is meant to help you understand if Direxion Shares are right for you.

Contributed By: Direxion

Study Notes:

You’ve probably heard a lot recently about exchange-traded funds or ETFs, which resemble mutual funds in structure but can be traded throughout the day like stocks.

Well, Direxion shares are leveraged ETFs, powerful daily trading tools that are designed to help increase exposure and stay agile in rapidly changing markets.

Jack is a conservative investor with a buy and hold approach and Jill is an investment professional and active trader who is willing to take on more risk. We’ll get into the details in the next section, but first allow us to explain some important information about the funds.

These are not your average ETFs.

Direxion shares and other leveraged ETFs are specifically designed for sophisticated investors who; A understand the risks associated with the use of leverage; B understand the consequences of seeking daily leveraged investment results; and C intend to actively monitor their investments.

Direxion shares are not intended for conservative investors who; A cannot tolerate substantial short-term losses; B are unfamiliar with a unique nature and performance characteristics of funds that seek leveraged daily investment results; and C are long-term investors who do not monitor their portfolios frequently.

Carefully consider the investment objectives, risks charges and expenses of Direxion shares before investing. The prospectus and summary prospectus contain this and other information and can be obtained by visiting

Investing involves risk, including the possible loss of principal. The use of derivatives, such as futures contracts, forward contracts, options and swaps are subject to market risks that may cause their price to fluctuate over time.

The funds do not attempt to, and should not be expected to, provide returns, which are a multiple of the return of the index for periods other than a single day.

For specific risks including leverage, compounding, volatility and exchange-traded funds, please read the prospectus. To learn more about Direxion’s leveraged ETFs please visit

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Disclosure: Direxion

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares and Direxion Funds. To obtain a Fund’s prospectus and summary prospectus call 866-476-7523 or visit our website at A Fund’s prospectus and summary prospectus should be read carefully before investing.

Market Disruptions Resulting from COVID-19. The outbreak of COVID-19 has negatively affected the worldwide economy, individual countries, individual companies and the market in general. The future impact of COVID-19 is currently unknown, and it may exacerbate other risks that apply to the Funds.

Distributor: Foreside Fund Services, LLC.

Disclosure: Interactive Brokers

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Direxion and is being posted with its permission. The views expressed in this material are solely those of the author and/or Direxion and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Disclosure: Complex or Leveraged Exchange-Traded Products

Complex or Leveraged Exchange-Traded Products are complicated instruments that should only be used by sophisticated investors who fully understand the terms, investment strategy, and risks associated with the products.  Learn more about the risks here:

Disclosure: Displaying Symbols on Video

Any stock, options or futures symbols displayed are for illustrative purposes only and are not intended to portray recommendations.

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