TZADirexion Daily Small Cap Bear 3X Shares
TZA Fund Description
TZA provides -3x leveraged exposure to a market-cap-weighted index of US small-cap companies.
TZA Factset Analytics Insight
TZA is an extremely aggressive 1-day bet against the Russell 2000 small-cap index, with enough liquidity to ensure it can be traded quickly and cheaply. It uses ETF and index swaps to get its inverse exposure, which does introduce some counterparty risk. As with nearly the entire universe of geared inverse ETFs, TZA is designed to provide its -3x exposure for 1 trading day, and anyone holding it for longer than a day will be exposed to the effects of compounding. These forces will cause the returns to drift away from the expected 3x inverse exposure to the Russell 2000 Index. Investors should therefore plan to hold TZA for no longer than 1 day, and if they do hold it for longer, they will need to adjust their investment on a daily basis to ensure it provides the -300% return it promises. TZA trades well, with small spreads and excellent block liquidity. Its fees are on the high side, even for the inverse equity segment, but they're still reasonable compared to similar funds.
TZA Charts And Performance
TZA Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of TZA. TZA 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.