The Direxion 3X Financial ETF Crashed And Burned Investors In 2009

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December 28, 2009 12:55pm NYSE:FAZ NYSE:IAT

down-arrow2“Of the 881 ETFs tracked by Morningstar, the Direxion Daily Financial Bear 3X Shares Fund (NYSE: FAZ) has been the worst performing ETF in 2009


. Year-to-date, FAZ has fallen 94.7%. This slide marks a dramatic turnaround for traders who were selling financial stocks short in 2008 and did quite well in doing so,” Billy Fisher Reports From Stock Traders Daily.

“Since bottoming out in March, the financial sector has not only regained its footing, but it has also retraced a decent chunk of its previous losses. The largest recipients of TARP funds have already repaid these loans and are hoping to keep this dark chapter in the past. However, the sector’s biggest players will now be turning their attention to Congress as it attempts to overhaul financial regulation and the potential impact any legislation could have on the sector’s current momentum. For traders looking to use this ETF as a way to put money behind their sentiment, it would be worthwhile to check out our free FAZ trading report,” Fisher Reports.

“Not all ETFs in the financial sector have torn the cover off the ball in 2009. On the contrary, the iShares Dow Jones U.S. Regional Banks Fund (NYSE: IAT) has been quite underwhelming this year. IAT is actually down 9.8% this year. For traders who think that this ETF is ready to breakout, it would be beneficial to review our free IAT trading report for additional input,” Fisher Reports.

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Here are some details on (FAZ) and (IAT) below:

The investment (FAZ) seeks to replicate, net of expenses, 300% of the inverse daily performance of the Russell 1000 Financial Services Index The fund will invest at least 80% of assets in securities that comprise the index. It will also utilize financial instruments that, in combination, provide leveraged and unleveraged exposure to the index. The fund is nondiversified.

TOP 10 HOLDINGS (FAZ) ( 409.97% OF TOTAL ASSETS)  
 
Company Symbol % Assets
Aim S/T Inves. Trst Coll N/A 5.89
Gs Financial Sq Govt Fund N/A 94.11
Russ 1000 Finan Indx Swap N/A 279.09
Russ 1000 Finan Indx Swap N/A 30.88

Chart for Direxion Daily Financial Bear 3X Shares (FAZ)

The investment (IAT) seeks results that correspond generally to the price and yield performance of the Dow Jones U.S. Select Regional Banks Index. The fund generally invests at least 90% of assets in securities of the underlying index and depositary receipts representing securities of the underlying index. It may invest the remainder of assets in securities not included in its underlying index but which BGFA believes will help the fund track underlying index, and in futures contracts, options on futures contracts, options and swaps as well as cash and cash equivalents, including shares of money market funds advised by BGFA. It is nondiversified.

TOP 10 HOLDINGS (IAT) ( 60.50% OF TOTAL ASSETS)  
 
Company Symbol % Assets
BB&T CP (BBT) 7.12
Fifth Third Bancorp (FITB) 3.6
Hudson City Bancorp, Inc. (HCBK) 2.94
KEYCORP (KEY) 2.39
M&T BANK CORP (MTB) 2.21
Northern Trust Corporation (NTRS) 5.12
P N C FIN SVCS GR (PNC) 11.01
REGIONS FINANCIAL CP (RF) 3.18
SUNTRUST BANKS (STI) 5.18
US BANCORP (USB) 17.75

Chart for iShares Dow Jones US Regional Banks (IAT)

 

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