(FAS) Direxion Daily Financial - Ratings and Ratios

Direxion Daily Financial Bull 3X Shares (NYSE ARCA:FAS) seeks to deliver three times the daily performance of its underlying financial-services index. To achieve this, at least 80 % of the fund’s net assets are allocated to leveraged instruments-such as swap agreements, index securities, and ETFs-that together provide 3× daily exposure. The index is concentrated in financial services, insurance, banks, capital markets, mortgage REITs, and consumer-finance firms, making the ETF non-diversified and highly sensitive to sector-specific shocks.

As of the latest filing, FAS carries an expense ratio of 0.99 % and manages roughly $1.2 billion in assets, with an average daily trading volume exceeding 5 million shares. Its 30-day implied volatility typically runs 2–3 percentage points higher than that of the S&P 500, reflecting the amplified risk inherent in 3× leverage. The fund’s beta to the S&P 500 is approximately 3.0, meaning a 1 % move in the broader market translates to an estimated 3 % move in FAS, all else equal.

The performance of FAS is driven primarily by macro-level financial conditions: Federal Reserve policy and the term structure of interest rates directly affect bank net interest margins; credit-quality trends influence insurance and consumer-finance earnings; and the spread between mortgage REIT yields and Treasury rates governs the valuation of the REIT component. Consequently, periods of rising rates and tightening credit can produce outsized gains or losses for the ETF.

For a deeper quantitative breakdown of these drivers and how they historically impact leveraged financial ETFs, you might explore the analytics available on ValueRay.