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Editor's note: Any and all references to time frames longer than one trading day are for purposes of market context only, and not recommendations of any holding time frame. Daily rebalancing ETFs are not meant to be held unmonitored for long periods. If you don't have the resources, time or inclination to constantly monitor and manage your positions, leveraged and inverse ETFs are not for you. Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock’s performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock’s performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock’s performance increases, and the Bear Fund will lose money even if the underlying stock’s performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in AAPL. Shares of Apple, Inc. have lagged notably within the Magnificent Seven year-to-date, but the stock has been on a tear since the start of August. And now, it’s come within a few percentage points of its all-time high. Can bulls finally get the job done or will bears spoil the party? Shaping the Technological Future Apple has been a powerhouse in the tech industry for decades. Their suite of products spans from smartphones and wearables to emerging technologies like AI-driven wearables and next-gen augmented reality (AR). Apple’s core strengths lie in its brand loyalty, integrated hardware-software ecosystem, and growing services segment, including Apple Music, iCloud, and Apple Pay. Recent reports suggest Apple is quietly pivoting from its heavy Vision Pro focus toward developing lighter, AI-powered glasses—an evolution that could merge AR and generative AI into a more practical consumer format. While Vision Pro showcased Apple’s engineering muscle, it’s the next wave of AI-integrated wearables, including upcoming AirPods with on-device intelligence, that may define the company’s future. Strategic moves, such as expanding Apple silicon for enhanced device performance and investing in renewable energy for carbon-neutral operations, reinforce Apple’s commitment to innovation. This shift also reinforces Apple’s strength in turning long-term R&D bets into mass-market successes—just as AirPods redefined audio, AI-driven wearables could redefine how users interact with information and technology day to day. Additionally, its global supply chain, manufacturing prowess, and strong financial positioning offer a competitive edge. Traders that think bulls can take Apple to new all-time highs may find an opportunity with Direxion’s Daily AAPL Bull 2X Shares (Ticker: AAPU), which seeks daily investment results, before fees and expenses, of 200% of the performance of Apple, Inc. common stock (Ticker: AAPL). Below is a daily chart of AAPL as of October 2, 2025. Source: TradingView.com Candlestick charts display the high and low (the stick) and the open and close price (the body) of a security for a specific period. If the body is filled, it means the close was lower than the open. If the body is empty, it means the close was higher than the open. The performance data quoted represents past performance. Past performance does not guarantee future results. Can Apple Overcome Its Loss in the A.I. Arms Race? While Apple has positioned itself as a leader in consumer technology for decades, its foray into artificial intelligence (AI)—particularly generative AI—has been marked by caution, delays, and underwhelming execution. While the company pioneered machine learning features like Face ID and the Neural Engine as far back as 2017, it has lagged in the current AI arms race dominated by rivals like OpenAI, Google, Microsoft, and Meta. This isn't just a perception issue; it's rooted in strategic missteps that have left Apple playing catch-up, with tangible impacts on its innovation pipeline and market position. This makes Apple’s next earnings report on October 30 all the more important. If results come in below estimates, or guidance is poor, it could re-embolden the bears and send the stock back lower. In this scenario, Direxion’s Daily AAPL Bear 1X Shares (Ticker: AAPD), which seeks daily investment results, before fees and expenses, of 100% of the inverse performance in common shares of Apple, Inc. (Ticker: AAPL) could provide an opportunity to take advantage of some downside price action. An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 866-476-7523 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing. Direxion Shares Risks – An investment in a Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund’s investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund’s other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning. Leverage Risk – The Bull Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. A total loss may occur in a single day. Leverage will also have the effect of magnifying any differences in the Fund’s correlation with AAPL and may increase the volatility of the Bull Fund. Daily Correlation Risk – A number of factors may affect the Bull Fund’s ability to achieve a high degree of correlation with AAPL and therefore achieve its daily leveraged investment objective. The Bull Fund’s exposure to AAPL is impacted by AAPL’s movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to AAPL at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to AAPL increases on days when AAPL is volatile near the close of the trading day. Daily Inverse Correlation Risk – A number of factors may affect the Bear Fund’s ability to achieve a high degree of inverse correlation with AAPL and therefore achieve its daily inverse investment objective. The Bear Fund’s exposure to AAPL is impacted by AAPL’s movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to AAPL at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to AAPL increases on days when AAPL is volatile near the close of the trading day. Information Technology Sector Risk — The value of stocks of information technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation, and competition, both domestically and internationally, including competition from competitors with lower production costs. Apple Inc. Investing Risk — In addition to the risks associated with companies in the technology sector, Apple Inc. faces risks related to market conditions, market disruptions, competition, managing the frequent introductions and transitions of products and services; as well as the outsourced manufacturing and logistical services provided by partners. Issuer-specific attributes may cause an investment held by a Fund to be more volatile than the market generally. The value of an individual security or particular type of security may be more volatile than the market as a whole and may perform differently from the value of the market as a whole. Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Industry Concentration Risk, Market Risk, Indirect Investment Risk, and Cash Transaction Risk. Additionally, for the Direxion Daily AAPL Bear 1X Shares, Shorting or Inverse Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund. ALPS Distributors, Inc.
