Direxion Zacks MLP High Income Index Shares (ZMLP)

Overview

The investment referred to is designed to replicate, before fees and expenses, the performance of the Zacks MLP High Income Index. This financial product aims to achieve results that mirror the price and yield performance of the specified index, which is an investment strategy for those interested in the particular sector of master limited partnerships (MLPs). The investment typically allocates at least 80% of its net assets to securities that form part of this index. The index itself is composed of 25 securities selected from a wider pool of MLPs listed on U.S. exchanges, making it a targeted investment choice for those looking to gain exposure to MLPs. Despite its focused strategy, it is noteworthy that the fund maintains a non-diversified status, potentially increasing its volatility due to a concentrated investment approach.

Products and Services

• Zacks MLP High Income Index Tracking

  This product is the core of the fund's strategy, intended for investors seeking to replicate the performance of the Zacks MLP High Income Index. The aim is to achieve investment results that, before fees and expenses, closely follow the price and yield performance of the index. This index is selectively compiled from master limited partnerships listed on U.S. exchanges, offering a focused investment in this specific asset class.

• Master Limited Partnerships (MLPs) Investment

  As part of its primary service, the fund commits at least 80% of its net assets to securities within the Zacks MLP High Income Index. These securities are cherry-picked from a universe of MLPs traded on U.S. exchanges, providing investors with a specialized exposure to the high-income potential of MLPs. This concentration on MLPs allows the fund to offer a unique entry point into a sector known for offering attractive yield opportunities.

• Non-Diversified Fund Structure

  The investment distinguishes itself by adopting a non-diversified fund structure, meaning it may invest a larger portion of its assets in fewer issuers than diversified funds. This approach allows for potentially greater returns from its focused investments but comes with a higher level of risk due to the concentration of assets. This characteristic underscores the fund's appeal to those investors willing to embrace higher volatility for the possibility of higher income from the MLP sector.