Facebook and other tech titans remain the primary drivers of how TECL and TECS perform. These ETFs are best deployed as short-term trades and should not be held for weeks or months.
“How Facebook handles this situation could in turn influence how today’s online behemoths, mainly Amazon, Google, and Apple, deal with this issue. These four companies make up almost 33% of the benchmark index for TECL and TECS,” according to Direxion.
Potential traders should keep in mind that these leveraged ETFs are designed to produce triple the performance of the underlying market on a daily basis. Consequently, when investors look at the long-term performance of a typical leveraged ETF, people may notice that the funds do not perfectly reflect their intended strategies.
For more information on the tech sector, visit our technology category.
Tom Lydon’s clients own shares of Facebook.