It tracks roughly twice the daily return of Microsoft, achieving leverage through derivative contracts and direct investment. Its multiple has been raised from the previous level, which offers even higher volatility.

It suits experienced investors who are strongly convinced of a near-term rise in Microsoft's share price, are willing to accept high volatility risk, and are seeking aggressive trading returns.

It is an actively managed ETF launched by Direxion in 2022.

The fund combines Microsoft shares with derivative contracts with financial institutions to achieve a set multiple of daily performance. It redistributes assets each day to match the target multiple, and uses cash-equivalent assets as collateral.

• Leverage effect concentrated in a single stock (MSFT)
• High liquidity suited to short-term trading

Assets under management (AUM) stand at $413.6M, and the expense ratio is 0.98% per year.

Because of the cost of running derivatives to implement leverage, fees are relatively high compared with typical index ETFs, and holding the fund for a long period carries a risk of erosion from compounding effects.

The fund posted high returns during periods when Microsoft's share price trended upward on growth in its cloud and AI businesses, but it also showed sharp declines when market volatility increased.

Trading capital flows in actively when short-term catalysts emerge, such as around earnings releases or major product launches, and money seeking an aggressive, tech-focused portfolio has remained steadily in place.

It is effective for maximizing short-term gains, but you need to consider the volatility risk inherent in leverage and the potential for asset erosion.

While TQQQ and QLD shown in the table provide leverage on the entire Nasdaq 100 index, MSFU concentrates on the single stock of Microsoft. Meanwhile, SSO and SPXL are broad leveraged products based on the S&P 500. If you have strong conviction in a specific stock, MSFU is advantageous, but if you are aiming to profit from an overall market rise, index-based leveraged ETFs can be an alternative in terms of managing volatility.

The MSFU ETF is a sharp investment tool for investors who want to join the long-term growth of a high-quality company like Microsoft very aggressively and maximize short-term gains.

Leveraged products can cause devastating losses when you get the market direction wrong. Because the fund is concentrated in a single stock, keep in mind that the company-specific risks of that business flow directly into the entire portfolio.

It is a product that fits experienced investors who want to capture market opportunities from a strictly short-term perspective. Rather than long-term investing, a strategic approach with a clear target return and stop-loss level is essential.