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ETF Spotlight: Financials in Focus With FAS and FAZ

This article was originally published on ETFTrends.com.

The Direxion Daily Financial Bull 3X ETF (FAS) and Direxion Daily Financial Bear 3X ETF (FAZ)  are options to play the financial sector, depending on where the trader's bias lies.

FAS seeks daily investment results equal to 300% of the daily performance of the Russell 1000® Financial Services Index. The fund invests at least 80% of its net assets (plus borrowing for investment purposes) in financial instruments and securities of the index, ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index is a subset of the Russell 1000® Index that measures the performance of the securities classified in the financial services sector of the large-capitalization U.S. equity market.

FAZ seeks daily investment results that equate to 300% of the inverse (or opposite) of the daily performance of the Russell 1000® Financial Services Index. The fund invests in swap agreements, futures contracts, short positions or other financial instruments that, in combination, provide inverse or short leveraged exposure to the index equal to at least 80% of the fund's net assets (plus borrowing for investment purposes). The index is a subset of the Russell 1000® Index that measures the performance of the securities classified in the financial services sector of the large-capitalization U.S. equity market. It is non-diversified.

In the video below, CNBC's Dominic Chu reports on the financial sector's struggles through the beginning of March.

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