Direxion 3x Etfs To Start Trading As Early As Today

Discussion in 'ETFs' started by S2007S, Nov 3, 2008.

  1. S2007S


    They are pushing it one step ahead of proshares by offering 3X etfs both bullish and bearish, should be interesting to see how popular these get, proshares have taken many by surprise by becoming one of the most popular etfs in the industry in only 2 years with tens of billions of assets.

    Aside from that a few of the tickers are


    Suppose to be releasing around 36 new etfs by the end of 2008.

    Updates coming.....
  2. S2007S


    Press Release Source: Direxion Funds

    Direxion Launches Eight New Leveraged ETFs
    Monday November 3, 11:40 am ET

    Innovative Funds Benchmarked to Help Advisors and Investors Seeking to Outperform Major Russell Indexes in Bull and Bear Markets

    BOSTON, MA--(MARKET WIRE)--Nov 3, 2008 -- Direxion, a pioneer in providing alternative investment strategies to sophisticated investors, today announced their entrance into the ETF space with the Direxion Shares 3x Exchange-Traded Funds, slated to begin trading Wednesday, November 5, 2008. The new ETFs are a group of leveraged Bull and Bear index funds that seek 300% of the daily performance, or 300% of the inverse of the daily performance (before fees and expenses) of the four distinct Russell indexes they benchmark. There is no guarantee that the funds will achieve their objective.

    The new Direxion Shares ETFs are designed to give investment advisors and sophisticated investors the ability to execute active trading strategies in all types of markets. The funds deliver increased market exposure via 3 to 1 leverage, long and short of their respective indices and afford investors the opportunity to effectively allocate capital to seek improved risk-adjusted returns. Direxion Shares ETFs represent the highest amount of leverage, currently available in the ETF space.

    "These eight leveraged index Bull and Bear ETFs will give our investors the ability to achieve increased exposure to the diversified Russell 1000®, Russell 2000®, Russell 1000® Energy and Russell 1000® Financial Services Indexes -- critical investment tools for navigating changing markets," said Dan O'Neill, Direxion Shares' President. "We're thrilled to be the first to deliver portfolio solutions that track these dynamic Russell indexes using the power of leverage."

    The new Direxion Bull and Bear 3x ETFs include:

    Fund Name Symbol Benchmark Leverage
    ------ ------------------------- --------
    Bull Funds
    ------ ------------------------- --------
    Direxion Large Cap Bull 3x
    Shares BGU Russell 1000® Index 300%
    ------ ------------------------- --------
    Direxion Small Cap Bull 3x
    Shares TNA Russell 2000® Index 300%
    ------ ------------------------- --------
    Russell 1000® Energy
    Direxion Energy Bull 3x Shares ERX Index 300%
    ------ ------------------------- --------
    Direxion Financial Bull 3x Russell 1000® Financial
    Shares FAS Services Index 300%
    ------ ------------------------- --------
    Bear Funds
    ------ ------------------------- --------
    Direxion Large Cap Bear 3x
    Shares BGZ Russell 1000® Index -300%
    ------ ------------------------- --------
    Direxion Small Cap Bear 3x
    Shares TZA Russell 2000® Index -300%
    ------ ------------------------- --------
    Russell 1000® Energy
    Direxion Energy Bear 3x Shares ERY Index -300%
    ------ ------------------------- --------
    Direxion Financial Bear 3x Russell 1000® Financial
    Shares FAZ Services Index -300%
    ------ ------------------------- --------

    By providing both Bull and Bear versions of each of the indexes, Direxion gives investors the ability to seek competitive returns in rising and falling markets across a wide spectrum of diversified assets. The ETF structure allows investors to benefit from the flexibility and low cost features of an exchange traded fund product, coupled with the leveraged investment solution experience that Direxion Funds is known for in the mutual fund industry.

    "Our new leveraged Bull and Bear ETFs offer an unprecedented level of leverage in the ETF arena, something that today's dynamic investors are demanding," said Bill Franca, Direxion's Executive Vice President of Sales and Distribution. "Direxion Shares will give savvy investors the array of important investment options they have been seeking to actively capitalize on the volatility of today's markets."

    To request more information on Direxion Shares 3x ETFs, or to speak to a member of the Direxion team, please contact Melinda Staab at (973) 400-1341 or melinda@jcpublicrelations.com.

    About Direxion

    Direxion Shares and Direxion Funds, managed by Rafferty Asset Management, LLC, offer leveraged index funds, ETFs and alternative-class fund products for investment advisors and sophisticated investors who seek to effectively manage risk and return in both bull and bear markets. Founded in 1997, the company has approximately $1.6 billion in assets under management. The company's business model is built on continuous product innovation, exceptional customer service and a commitment to building strategic relationships with distribution partners.

    For more information, please visit www.direxionfunds.com or www.direxionshares.com.
  3. I dont see these trading today.
    I would like to see a 4x leveraged inverse treasury ETF.
  4. I second that call of the treasury etf. Ive been using TBT, but its crap
  5. S2007S


    I thought they were going to trade today, wednesday is the day now. Im still wondering about what price they will be coming out at? Im sure they will develop a treasury etf like proshares has done.
  6. Gonna keep an eye on this. Can't see how well these can correlate, but we'll see I guess :)
  7. There can be some "free money" during the first days and weeks of the launch if you can identify arb opportunities between these new funds versus existing funds and futures. :cool:
  8. Arjun1


    If you trade a 3x leveraged fund with 4x intraday margin on a retail account then that's adds up to 12x margin - which approximates margin on index futures.

    A better idea would have been to create an 3x ETF based on the S&P 500 - that would've attracted huge volume.

    The 3x leverage only holds true on a daily basis, so these ETFs are great for daytraders and very short term traders.

    Over the long run, they're really not worth it as there is no way they can deliver a performance that is 3x the benchmark.

  9. How come there aren't volume stats for these funds? Can you day trade these?
  10. S2007S


    Yes, you will be able to daytrade them, I really think these ETFS should only be used for daytrading.

    These arent buy and hold vehicles, if you are going to be a long term investor in say the 3X ultra large cap bull etf I would recommend buying small amounts. These ETFs are going to have wild swings, I have seen some proshare 2x ultra bear ETFs swing $40-$60 in a day, FXP, EEV and EFU being a few of them.

    Will see tomorrow, Im just wondering where they are pricing these ETF, the proshares usually price around $75.00

    I think these 3X ETFS from what I think I remember will price around $25.
    #10     Nov 4, 2008