Microcap ETFs Performance and Benefits

Microcap ETFs have been gaining popularity in recent years due to their potential for high returns.

They offer a way to diversify your portfolio and tap into the small-cap market, which can be a great opportunity for growth.

According to the data, microcap ETFs have historically outperformed large-cap ETFs during market downturns.

By investing in a microcap ETF, you can gain exposure to a wide range of small-cap stocks with just one investment.

This can be especially beneficial for investors who are looking to take on more risk in pursuit of higher returns.

Microcap ETFs typically have lower fees compared to actively managed funds, making them a more cost-effective option.

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Performance and Distributions can be a bit tricky to understand, but let's break it down. The record date, ex-date, and payable date are all important dates to know when it comes to receiving distributions. The record date is typically the date when the distribution is declared, the ex-date is when the distribution is no longer available to shareholders who purchase the fund after this date, and the payable date is when the distribution is actually paid out to shareholders.

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The total distribution is made up of income, short-term capital gains, long-term capital gains, and return of capital. It's worth noting that short-term performance is not a good indication of a fund's future performance, and an investment should not be made based solely on returns.

Here is a breakdown of the NAV and Market Price information as of 01/13/2025:

The expense ratio is an important factor to consider when investing in a fund. The net expense ratio includes management fees, other operating expenses, and Acquired Fund Fees and Expenses.

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Performance is a crucial aspect to consider when evaluating a fund's overall health. The data presented in the NAV and Market Price information as of 01/13/2025 provides a snapshot of the funds' performance over various time periods.

The 1-month return for TNA is -24.47%, while TZA's 1-month return is 29.10%. This significant difference highlights the varying performance of these two funds.

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The 1-year return for both TNA and TZA is -32.24%, indicating a decline in value over the past 12 months. It's essential to remember that short-term performance is not a reliable indicator of future success.

One key factor to consider is the expense ratio, which affects the fund's overall performance. The Net Expense Ratio for TNA is 1.08% (Gross / Net%), while TZA's is 1.04% (Gross / Net%). This difference may impact the fund's returns over time.

Here's a brief summary of the funds' performance over the past 1, 3, and 5 years:

Keep in mind that fund performance may be subject to substantial short-term changes due to market volatility. It's essential to review the fund's prospectus for more information and to make an informed investment decision.

You can buy and sell ETFs, including microcap ETFs, on most trading platforms during exchange hours.

Direxion ETFs, however, cannot be purchased directly from Direxion.

It's a good idea to educate yourself on how leveraged and inverse ETFs work, especially for microcap ETFs, to make informed trading decisions.

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The Pacer US Small Cap Cash Cows 100 ETF (CALF) is an excellent choice for investors looking to tap into the small-cap market.

This ETF tracks the performance of the Pacer US Small Cap Cash Cows Index, which is made up of the 100 stocks from the S&P SmallCap 600 with the highest cash flow yields. These stocks are then weighted based on their trailing 12-month free cash flow.

The index is reconstituted and rebalanced four times a year, and the holdings are capped at a 2% weighting. The stocks in the index have market caps between $375 million and $5.5 billion.

The top three sectors by weight in the index are consumer discretionary (27%), energy (18%), and industrials (15%). The largest three holdings by weight at the moment are energy stocks Peabody Energy (BTU) and SM Energy (SM), as well as regional air carrier SkyWest (SKYW).

Here are some key statistics about the Pacer US Small Cap Cash Cows 100 ETF:

The ETF has had an annualized total return of 9.8% since its inception in June 2017, which is a respectable performance compared to the S&P SmallCap 600 Index's 10.5% return over the same period.

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When managing your ETF portfolio, it's essential to understand the fees involved. The management fee for this particular ETF is a relatively low 0.60%.

Fees can eat into your investment returns, so it's crucial to keep them in check. The acquired fund fees and expenses for this ETF are currently 0.00%.

If you're new to ETFs, you might be wondering what other expenses you can expect. Fortunately, the other expenses for this ETF are also a low 0.00%.

The expense ratio is a useful metric to consider when evaluating ETF fees. It's calculated by adding up the management fee, acquired fund fees and expenses, and other expenses, which in this case, adds up to a total expense ratio of 0.60%.

Here's a breakdown of the fees for your reference:

ETFs are known for their transparency and low costs, but have you ever wondered how their pricing and performance are measured? NAV and Market Price information are as of 01/13/2025, giving us a snapshot of the funds' current state.

The 1-month returns for TNA and TNAMarket Close are -24.47% and -24.75%, respectively. Meanwhile, TZA and TZAMarket Close have 1-month returns of 29.10% and 29.50%.

Short-term performance is not a reliable indicator of a fund's future performance. In fact, the 3-month returns for TNA and TNAMarket Close are -5.18% and -5.15%, respectively, while TZA and TZAMarket Close have 3-month returns of -3.15% and -3.30%.

The expense ratio is an important consideration when choosing an ETF. For TNA and TNAMarket Close, the expense ratio is 1.08% (Gross) and 1.08% (Net), while for TZA and TZAMarket Close, it's 1.04% (Gross) and 1.04% (Net).

Here's a summary of the funds' performance over various time periods:

It's essential to keep in mind that ongoing market volatility can cause fund performance to fluctuate significantly over short periods. Always check the fund's prospectus for additional information before making an investment decision.

ETFs can be bought and sold throughout the trading day whenever exchanges are open. This is similar to trading stocks.

You can't purchase Direxion ETFs directly from Direxion, but they are available for trading on most trading platforms.

It's a good idea to educate yourself on how leveraged and inverse ETFs function and behave in various market conditions before trading them. This will help you make informed decisions.

Consult a financial advisor or brokerage account representative if you have questions about any ETFs. They can provide guidance and help you understand the fees involved.

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Trading is different than investing, and it's essential to understand the difference to make informed decisions about your money.

Leveraged and inverse ETFs are specialized investment products that can be used for trading. Direxion's Leveraged and Inverse ETFs are designed to help traders achieve their goals.

Trading leveraged ETFs can be like trying to hit a home run in baseball - it's a high-risk, high-reward strategy that requires careful planning and execution. Trading leveraged ETFs can result in significant losses if not managed properly.

Inverse ETFs, on the other hand, are designed to move in the opposite direction of the market. They're like a defensive player on the baseball field, trying to prevent the other team from scoring.

Using educational resources, such as those offered by Direxion, can help you make informed decisions about trading leveraged and inverse ETFs.