Dallas, Texas 10/23/2013 (Financialstrend) – Direxion Daily Small Cap Bear 3X Shares (NYSEARCA:TZA) is an exchange traded fund which focuses on investment in U.S. based small cap companies and measures its growth and returns against the Russell 2000 index bench mark. While the Russell 2000 index has seen its overall valuation go up by 29% year to date the ETF has plummeted by 62%. In the past one month the index has appreciated by 5.4% while TZA has managed to shave off a further 12.7% off its market valuation. Hence investors in this small cap focused ETF would be a confused lot. They would be trying to determine if it makes sense to remain invested in the fund with the hope of recouping their losses as against exiting now and cut their losses. It makes it even more difficult decision for those investors who were looking at a long term investment prospect irrespective of yield. Even on the dividend yield front this stock disappoints its investors. It has not paid out any dividend in the past 9 months.
These negative returns has turned away new investors with the stock trading at price points which are just one percentage point above its 52 week low pricing. The 200 day moving average of this ETF is down a disappointing 39.4% indicating the long running weakness of this investment portfolio.
ETF trade experts have advised investors who are invested into better performing small cap ETF’s to switch their ETF investment criteria from U.S. focused companies to those which are focused on global growth. The logic behind this advice seems to be that global growth oriented small caps are less exposed to international fluctuations.
As of close of business on October 22, the stock of this exchange traded fund was trading at $20 per share down 0.7% from its previous day close.