TECL - When Leverage Leaves You Poor

Binary Tree Analytics
5.13K Followers

Summary

  • The Direxion Daily Technology Bull 3x Shares (TECL) is an ETF falling in the leveraged funds category.
  • The vehicle seeks daily investment results 300% of the performance of the Technology Select Sector Index.
  • TECL is down over -60% year to date.
  • We feel there is another leg down in this bear market and high beta vehicles like TECL will deplete an investor's capital.

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Thesis

The Direxion Technology Bull 3x Shares (NYSEARCA:TECL) is an ETF falling in the leveraged funds category. The vehicle seeks daily investment results 300% of the performance of the Technology Select Sector Index. An investor should

This article was written by

5.13K Followers
With an investment banking cash and derivatives trading background, Binary Tree Analytics ('BTA') aims to provide transparency and analytics in respect to capital markets instruments and trades. BTA focuses on CEFs, ETFs and Special Situations, and aims to deliver high annualized returns with a low volatility profile. We have been investing for over 20 years after obtaining a Finance major at a top university.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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