TNA: Small-Caps May Have Near-Term Turbulence Before Returning To Growth

Direxion Daily Small Cap Bull 3X ETF is rated Buy, capitalizing on moderating inflation and a bullish small-cap outlook for 2026. TNA offers 3x daily exposure to the Russell 2000, benefiting from expected rate stability and potential AI-driven operational improvements. Investors should use TNA primarily for their daily trading, as long-term holding risks NAV erosion and compounded losses due to leverage. Small-cap outperformance may persist as enterprise agentic AI adoption gains momentum over the coming years, potentially benefiting operational performance. Small-caps have experienced extraordinary performance year-to-date and may continue this growth trend throughout the remainder of 2026. With the June 2026 CPI print exhibiting an easing rate of inflation, the risk of a rate hike by This article was written by Michael Del Monte 7.54K Followers Follow Monte Independent Investment Research: Michael Del Monte is a buy-side equity analyst with expertise in the technology, energy, industrials, and materials sectors. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.