Bullishness is favoring the financial sector with the Direxion Daily Financial Bull 3X ETF (FAS ) up 20% to start 2021. If momentum can continue in favor of the current uptrend, look for more traders to pile into financials as the global economy heals.
FAS offers 3x daily long leverage to the Russell 1000 Financial Services Index, making it a powerful tool for investors with a bullish short-term outlook for the broad financial market. Investors should note that FAS’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods.
The fund can be a powerful tool for sophisticated investors and short-term traders who are bullish on the financial industry, but should be avoided by those with a low risk tolerance given the triple leverage exposure. If traders can stomach the risk, they can experience gains like 95% gain over the past 3 months:
Despite low interest rates, investors are rallying around the notion that additional stimulus measures can help give the economy a shot in the arm.
For more news and information, visit the Leveraged & Inverse Channel.
