(AMZU) Direxion Daily AMZN Bull - Ratings and Ratios

The Direxion Daily AMZN Bull 1.5X Shares (NASDAQ:AMZU) is an ETF designed to provide 1.5 times the daily return of Amazon (AMZN) stock. It achieves this through swap agreements with major financial institutions, effectively amplifying the daily performance of AMZN.

As a leveraged ETF, AMZU is suited for short-term trading strategies, aiming to capitalize on daily movements in AMZNs stock price. Its non-diversified nature means it is heavily focused on a single stock, increasing its volatility and potential for significant gains or losses.

To evaluate the performance of AMZU, key performance indicators (KPIs) such as the daily return correlation with AMZN, tracking error, and the funds expense ratio should be considered. A high correlation with AMZNs daily returns indicates the ETF is effectively achieving its objective. The tracking error, which measures the deviation of the ETFs returns from its intended 1.5 times leverage, is also crucial. A lower tracking error suggests better performance. Additionally, the expense ratio, which reflects the funds operating costs, can significantly impact net returns.

Given its leveraged nature, AMZU is likely to exhibit higher volatility compared to non-leveraged ETFs or AMZN stock itself. Therefore, metrics such as the average true range (ATR) and beta relative to AMZN or the broader market can provide insights into its risk profile. Investors should also consider the liquidity and trading volume of AMZU to ensure it meets their trading needs without significantly impacting the market price.

With an AUM of $284.41M USD, AMZU has a considerable asset base, suggesting it is viable for institutional and retail investors. However, the sustainability and growth of its AUM, alongside its trading activity, are important factors to monitor for ongoing viability and liquidity.