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 CSCO or QCOM.

Direxion’s Single Stock Leveraged and Inverse ETFs have become increasingly popular with active traders looking to attempt to capitalize on short-term moves in high-profile stocks. The lineup recently expanded to include new offerings tied to two technology stalwarts—Cisco Systems, Inc. (Ticker: CSCO) and Qualcomm Incorporated (Ticker: QCOM).

These ETFs allow traders to express bullish or bearish views on two closely watched tech names with precision and daily resetting leverage or inverse exposure.

Cisco: A Networking Giant at a Crossroads

Cisco Systems, Inc. (Ticker: CSCO) is a foundational name in enterprise networking, with expanding efforts in cloud, security, and software-driven infrastructure. As AI and remote work reshape IT needs, Cisco remains a major player—but faces rising competition.

CSCO Bullish Catalysts

• AI-Driven Demand: Cisco is positioning itself to benefit from increased spending on data centers and AI infrastructure. As noted in Investor’s Business Daily, Cisco’s exposure to AI-focused buildouts may provide new growth levers.

• Strong Financial Foundation: Cisco boasts solid cash flow, regular share buybacks, and a dividend yield of over 3%—appealing attributes in an uncertain rate environment, according to Barchart.

• Transition to Recurring Revenue: Analysts have highlighted Cisco’s shift toward subscription and software models as a long-term strength, Insider Monkey reports.

CSCO Bearish Catalysts

• Intensifying Competition: Arista Networks continues to chip away at Cisco’s dominance in high-performance networking, particularly in hyperscale data centers.

• Execution Risk in Cloud and Security: Despite efforts, Cisco hasn’t yet emerged as a leader in cloud-native security, where players like Palo Alto and CrowdStrike dominate.

• Growth Concerns: Some analysts remain cautious on whether Cisco’s transformation will meaningfully accelerate revenue growth, according to a report on Yahoo Finance.

Qualcomm: At the Heart of 5G—and Looking Beyond Smartphones

Qualcomm Incorporated (Ticker: QCOM), best known for its dominance in smartphone chips and wireless licensing, is now pushing into new verticals including automotive, the Internet of Things (IoT), and PCs. The transition comes amid regulatory scrutiny and smartphone market maturity.

QCOM Bullish Catalysts

• Diversification Strategy: Qualcomm is expanding into fast-growing areas such as automotive chips and edge devices, which could reduce reliance on phones, according to a Nasdaq.com report.

• 5G and AI Tailwinds: As the world upgrades to 5G and AI demands grow, Qualcomm’s technologies remain essential to device performance and connectivity.

• Valuation Support: Some analysts see current valuations as compelling after recent pullbacks, noting potential upside as earnings recover, Yahoo Finance reports.

QCOM Bearish Catalysts

• Apple Modem Risk: Apple’s ongoing efforts to develop in-house modems could eventually reduce Qualcomm’s chip business with one of its biggest customers.

• Regulatory Pressures: Qualcomm’s licensing model remains under global regulatory scrutiny, which could impact margins, according to TheStreet.

• Smartphone Dependency: While diversification efforts are promising, Qualcomm still relies heavily on the smartphone market, which is maturing and facing demand headwinds, Yahoo Finance reports.

Trading CSCO and QCOM

The new Single Stock Leveraged and Inverse ETFs are:

• Direxion Daily CSCO Bull 2X ETF (Ticker: CSCL) and Direxion Daily CSCO Bear 1X ETF (Ticker: CSCS) seek daily investment results, before fees and expenses, of 200%, and 100% of the inverse (or opposite), respectively, of the performance of the common shares of Cisco Systems, Inc.

• Direxion Daily QCOM Bull 2X ETF (Ticker: QCMU) and Direxion Daily QCOM Bear 1X ETF (Ticker: QCMD) seek daily investment results, before fees and expenses, of 200%, and 100% of the inverse (or opposite), respectively, of the performance of the common shares of Qualcomm Incorporated.

As always, Leveraged and Inverse ETFs are designed for short-term use and designed for traders who actively manage their positions.

*Definitions and Index Descriptions

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 – Each 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 a Fund’s correlation with CSCO or QCOM and may increase the volatility of a Bull Fund.

Daily Correlation Risk - A number of factors may affect a Bull Fund’s ability to achieve a high degree of correlation with CSCO or QCOM and therefore achieve its daily leveraged investment objective. Each Bull Fund’s exposure to CSCO or QCOM is impacted by CSCO or QCOM’s movement. Because of this, it is unlikely that a Bull Fund will be perfectly exposed to CSCO or QCOM at the end of each day. The possibility of a Bull Fund being materially over- or under-exposed to CSCO or QCOM increases on days when CSCO or QCOM is volatile near the close of the trading day.

Daily Inverse Correlation Risk - A number of factors may affect each Bear Fund’s ability to achieve a high degree of inverse correlation with CSCO or QCOM and therefore achieve its daily inverse investment objective. A Bear Fund’s exposure to CSCO or QCOM is impacted by CSCO or QCOM’s movement. Because of this, it is unlikely that a Bear Fund will be perfectly exposed to CSCO or QCOM at the end of each day. The possibility of a Bear Fund being materially over- or under-exposed to CSCO or QCOM increases on days when CSCO or QCOM is volatile near the close of the trading day.

Cisco Systems, Inc. Investing Risk – Issuer-specific attributes may cause an investment held by the Fund to be more volatile than the market generally. Cisco Systems, Inc. faces risks associated with: impacts on operations from various avenues; supply chain disruptions; volatility of sales to service providers and cloud markets; changes in distribution; high competition; need to manage strategic alliances; complexities of inventory management; changes in supply and demand for software subscriptions; reliance on new product development; among other risks.

QUALCOMM Incorporated Investing Risk – Issuer-specific attributes may cause an investment held by the 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. QCOM faces risks associated with: concentration of revenues amongst a small number of customers; vertical integration; concentration of business in China; requirements to grow the business and add new products and services; inability to profit from acquisitions and strategic transactions; limitations in supply chain and in demand for products and services; among other risks.

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.

Semiconductor Industry Risk – Semiconductor companies may face intense competition, both domestically and internationally, and such competition may have an adverse effect on such companies’ profit margins. Semiconductor companies may have limited product lines, markets, financial resources or personnel. Companies in the semiconductor industry may have products that face obsolescence due to rapid technological developments and frequent new product introduction, unpredictable changes in growth rates and competition for qualified personnel.

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 CSCO Bear 1X ETF and Direxion Daily QCOM Bear 1X ETF, Shorting or Inverse Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund.

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