FAZDirexion Daily Financial Bear 3X Shares
FAZ Fund Description
FAZ provides 3x inverse exposure to a market-cap-weighted index of US large-cap financial companies.
FAZ Factset Analytics Insight
For a steep expense ratio, FAZ offers 3x leveraged inversed exposure to the Russell 1000 Financial Services Index—a subset of the Russell 1000 Index that measures the performance of large-cap financials. At first glance, the fund seems pricey, but note that FAZ is designed as a short-term trading vehicle—not a long term investment, so few traders will be seriously affected by the fee. The fund rebalances daily. As a result, compounding and path dependency lead to a lack of predictability in the fund’s long-term returns relative to its index. Still, FAZ’s large asset base is indicative of the fund’s strong investor interest. FAZ also excels when it comes to liquidity, as the fund trades in large volumes with tight spread.
FAZ Charts And Performance
FAZ Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of FAZ. FAZ is rated a 5 out of 5.
Options Strategies for Outcome Investing
Options allow you to customize investment outcomes. Using the strategy builders provided by Cboe Vest Technologies, you can construct some of the most common option strategies. Check out our user guide for more information on how to use the tool.
A collar strategy is a protective option strategy constructed by writing a call and buying a put with the same expiration date while being long the underlying security.
A covered call is an income strategy constructed by writing a call option against a holding of the underlying security.