Dallas, Texas 03/05/2014 (FINANCIALSTRENDS) – Direxion Daily Small Cap Bear 3X Shares (NYSEARCA:TZA) is an exchange traded fund which tracks its results against the negative returns provided by the Russell 2000 Index. The index tracks the performance of close to 2000 small capped firms which are traded in the U.S stock market. The fund shed close to 7.84 percent of its market valuation during trading on 4th March, even as the Dow Jones index went up by 1.41 percent.
Since it is a fund designed to help its customers gain exposure and gains during the under-performance of the overall stock market returns, it has been under-performing in the short run. This is because, the stock markets in U.S has shown significant gains in the past few weeks.
The Direxion issued fund has a expense ratio of 0.95 percent and has its investments spread across 14 holdings which are linked to Russ 2000 Indx Small Swap funds and adds up to 290 percent of its total holdings. The fund has provided negative returns of 24.9 percent and has been a underperforming fund amongst its peers.
Direxion Daily Small Cap Bear 3X Shares(NYSEARCA:TZA) falls in the category of Leveraged Equities and counts the funds which are traded under the names of ProShares UltraShort S&P 500 and ProShares Ultra S&P500 as its peers.
The fund has been trading in the $15.08 to $42.95 range in the past 12 months and its current price reflects a 66 percent dip on its 52 week high price point and a 3.3 percent dip over its 52 week low price point. In the past year it has shown negative gains of 64 percent. The relative underperformance of the fund has to be seen in context to the improving macro economic situation in U.S. The job loss figures for the month of Jan have come down even as the business and consumer sentiments for the same period have gained.