AMZD
1x Short
Direxion Daily AMZN Bear 1X Shares
Shorts: Amazon (AMZN)
Expense Ratio
1.07%
Leverage
1x Inverse
Issuer
Direxion
Inception
Sep 2022
Single Stock Concentration Risk
AMZD tracks a single company with no diversification. This ETF is designed for short-term trading only.
What AMZD Shorts
The Direxion Daily AMZN Bear 1X Shares (AMZD) is an exchange-traded fund designed to deliver the inverse (opposite) daily performance of Amazon.com, Inc. (AMZN) common stock.
It uses financial derivatives like swaps to achieve a -100% daily return relative to AMZN. It resets daily, making it suitable only for short-term trading or hedging.
Key Risks
- Daily Reset Risk: Compounding can cause returns to deviate significantly from the inverse of AMZN's performance over periods longer than one day.
- Single-Stock Concentration: Performance is tied solely to Amazon stock, exposing investors to company-specific volatility and news.
- High Expense Ratio (1.07%): Costs erode returns, especially in a flat or choppy market.
- Inverse Leverage Risk: Designed to lose value when AMZN rises; losses can be rapid and substantial in a bull market.
- Counterparty Risk: Relies on derivatives contracts with other financial institutions, which could fail to meet obligations.
Best Use Cases
- Short-term hedging for investors with a concentrated long position in Amazon stock seeking temporary downside protection.
- Active traders with a strong bearish conviction on AMZN's near-term price movement (e.g., around earnings).
- Implementing a tactical, short-term market-neutral or pairs trading strategy.
- Gaining inverse exposure to AMZN without using a margin account to short the stock directly.
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Frequently Asked Questions
Is AMZD a good long-term investment?
No. Due to daily reset and compounding, AMZD is designed for short-term trading (daily) only. It is highly likely to lose value over the long term, especially in a rising market.
How does AMZD work?
AMZD uses financial derivatives like swap agreements to deliver returns that are the inverse (-100%) of Amazon's (AMZN) daily price performance.
Can I use AMZD to hedge my Amazon stock?
Yes, it can be used as a short-term hedge for a long AMZN position. However, due to the daily reset, the hedge may not be perfect over extended periods and requires active management.