"FAS provides 3x leveraged exposure to the Russell 1000 Financial Services Index—a subset consisting of large-cap financial companies from the Russell 1000 Index. FAS charges a steep fee for such exposure; however, the product isn’t designed for long-term investors. The fund rebalances daily. As a result, compounding and path dependency make its long-term returns difficult to predict when compared with its underlying index. Despite this, FAS’s asset base is indicative of strong investor interest, while its excellent liquidity is all-important in this tactical space. As always, if you plan on buying the fund, be sure to mind your exposure and rebalance appropriately.
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