Understanding the Inverse Amazon ETF and Its Performance

The Inverse Amazon ETF is a type of exchange-traded fund that allows investors to profit from a decline in Amazon's stock price.

This ETF uses a complex formula to calculate its daily returns, which can be affected by various market and economic factors.

One of the key features of the Inverse Amazon ETF is its ability to provide a negative return when Amazon's stock price rises, and a positive return when Amazon's stock price falls.

Investors who are bearish on Amazon's future performance may find this ETF to be a useful tool in their investment strategy.

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The pricing and performance of an inverse Amazon ETF can be a bit confusing at first, but let's break it down.

The NAV (net asset value) and market price of the AMZUNAV fund as of 01/15/2025 are $9.66 and $9.71 respectively.

The fund's one-month return is 9.66%, while its three-month return is 31.82%.

For the year-to-date, the fund has returned 61.12%, and over the past year, it has also returned 61.12%.

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The AMZDNAV fund, on the other hand, has had a negative return of 5.33% over the past month, and its three-month return is -15.49%.

The expense ratio for the AMZUNAV fund is 1.08% (gross) and 1.06% (net), while the expense ratio for the AMZDNAV fund is 1.37% (gross) and 1.09% (net).

Here's a comparison of the two funds' performance over different time periods:

It's worth noting that the expense ratio for the AMZDNAV fund is higher than that of the AMZUNAV fund, which may impact the fund's overall performance.

The AMZD ETF is a financial instrument designed to provide investors with inverse exposure to the movements of Amazon.com, Inc. (AMZN). This ETF employs sophisticated strategies, including swap agreements and options, to achieve daily returns equal to -100% of the daily performance of AMZN.

The AMZD ETF is a complex financial instrument, relying on a web of financial instruments to create its desired inverse exposure to AMZN. Its unique approach can be especially attractive to investors seeking ways to profit from anticipated downturns in Amazon's value.

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The AMZD ETF has a 0.95% expense ratio, which is a relatively high cost for investors. However, this expense ratio is consistent across several other ETFs, including WEBS, FNGD, and QID.

The ETF's correlation with other financial instruments is an important consideration for investors. Correlation measures the strength of the relationship between two ETFs, with a Pearson correlation coefficient ranging from -1 to 1. The AMZD ETF has a correlation of 1.00 with WEBS, indicating a perfect positive correlation.

Investors can use ETF correlations to create diversified portfolios and minimize risk. By combining uncorrelated or inversely correlated ETFs, investors can reduce their exposure to market volatility. For example, the AMZD ETF can be paired with other ETFs that have a low correlation with AMZN.

Here are some ETFs related to AMZD, along with their expense ratios and correlations:

The AMZD ETF is designed to magnify the effects of Amazon's downturns, potentially offering substantial gains to savvy investors during periods of AMZN price decline.

Investing in an inverse Amazon ETF can be a high-risk strategy, especially since the fund's performance is directly tied to Amazon's stock price movements. This means that if Amazon's stock price drops, the ETF's value will likely decrease as well.

The inverse Amazon ETF's value can also be affected by Amazon's business performance, including its revenue growth, profit margins, and competition in the market. For example, if Amazon's revenue growth slows down, the ETF's value may decline.

Investors should be aware that inverse ETFs are designed to perform inversely to the underlying index or asset, which can lead to significant losses if the underlying asset's value increases. In the case of an inverse Amazon ETF, this means that if Amazon's stock price rises, the ETF's value will likely decrease.

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The AMZD ETF involves complex strategies and significant risks. The daily rebalancing and compounding effects can lead to outcomes that significantly differ from the inverse of Amazon's performance over longer periods.

Investors must conduct thorough due diligence and understand the intricate mechanics of this ETF before including it in their portfolio. This includes recognizing that the ETF could even experience losses over time while Amazon's performance decreases.

The AMZD ETF's strategy creates a distinctive approach that can potentially lead to substantial gains during periods of Amazon's decline. However, this comes with a price, and investors must be comfortable with the potential outcomes.

The author and publisher are not providing any investment advisory services, and investors should consult with their financial advisors and conduct thorough research before making any investment decisions.

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The AMZD quote analysis is a crucial tool for investors. It helps you discover the top holdings of the Direxion Daily AMZN Bear 1X Shares ETF.

You can use the visualization tool to see the correlations and overlaps of ETFs, which is essential for building a diversified portfolio.

Our app allows you to build and track your portfolio, making it easier to stay on top of your investments.

To learn more about the AMZDDirexion Daily AMZN Bear 1X Shares ETF, access our dedicated page now.

The Direxion Daily AMZN Bear 1X Shares (AMZD) ETF is a unique investment tool that allows you to profit from anticipated downturns in Amazon's value.

This ETF relies on a complex web of financial instruments, most notably swap agreements and options, to create its desired inverse exposure to AMZN. The AMZD ETF seeks daily inverse investment results, which means it aims to move in the opposite direction of Amazon's stock price.

The AMZD ETF has a 0.95% expense ratio and a correlation of 1.00 with the S&P 500, indicating that it is highly correlated with the broader market. This means that when the market is down, the AMZD ETF is likely to be down as well.

ETFs correlated to AMZD include WEBS, FNGD, QID, which can be used to create a diversified portfolio or to hedge an investment in AMZD.

Here are some ETFs correlated to AMZD, along with their expense ratios and correlation coefficients: