Direxion Daily Cloud Computing Bull 2X Shares(AMEX:CLDL)

CLDL seeks to deliver 200% of the daily performance of the Indxx USA Cloud Computing Index. The index includes US-listed firms that allow dynamic scaling by offering on-demand computing services such as servers, storage, network, and operating systems over the internet. Companies must derive majority of their revenues from activities related to cloud computing infrastructure, platforms and services. These companies license and deliver software over the internet by subscription, provide a platform to create software and virtualized computing via internet, make or distribute related hardware, and also offer shared resources services like shared storage, servers, and storage pools. Index constituents are capped at 5% each and undergoes annual rebalance and reconstitution. CLDL isnt designed for long-term investors as 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.