2 Reasons to Buy TNA, and 3 Reasons Not To

From Yahoo Finance: 2025-06-28 09:22:00

The Direxion Daily Small Cap Bull 3X Shares ETF aims to triple the daily return of the Russell 2000 index, making it attractive for potential high returns. However, it is highly volatile and not designed for long-term investment due to daily compounding and leveraged nature. Fees are high at 1.03% net expense ratio.

Historical data shows the ETF’s underperformance compared to the Russell 2000 over time. While it may offer short-term gains during bull runs, its long-term prospects are not favorable. Investing in a standard Russell 2000 ETF is a safer and more stable option for long-term growth compared to the leveraged ETF.

Buying shares of the Direxion Daily Small Cap Bull 3X Shares ETF is considered speculation, not investing. Despite potential high returns, it comes with extreme volatility and risks. The ETF is not likely to deliver strong results over the long term and should be approached with caution. It is crucial to only invest money that can be afford to lose in such high-risk assets.



Read more at Yahoo Finance: 2 Reasons to Buy TNA, and 3 Reasons Not To