Rafferty Asset Management LLC took the ETF market by a thrive when they distributed the Direxion Shares in 1997. Specializing in ETFs these funds provide 300% market index leverage on daily investment results. Although the returns are great but they have a tendency to be extremely volatile and can deliver either a gain or a loss in a very short period of time.
The Direxion funds are offering an unprecedented level of leverage in the ETF arena. The idea of having gain is through leverage by borrowing money. These are derived by leverage ETFs that use swaps, derivations and other financial instruments to keep a closer look at the market’s daily movements.
The Direxion funds have almost 26 ETF products in registration, the expense ratios of which range from 0.55% to 0.95%. The ETF categories include ETFs in inverse bonds, leveraged bonds, leveraged equities, leveraged real estate and transportation equities. Direxion ETF are now one of the largest 2x and 3x leveraged ETF providers out there.
Direxion has recently launched three new products for daily inverse exposure to fixed income benchmarks. Total Bond Market Bear 1x Shares (SAGG) ETF is designed to correspond to 100% for daily change in Barclays Capital U.S. Aggregate Bond Index. They have total assets of $20 billion. The SAGG is the first ETF that provides access to broad investment grade bond index focusing primarily on Treasuries.
Daily 7-10 Year Treasury Bear 1x Share (TYNS) ETF is looking at the NYSE 7-10 Year Treasury Bond Index which includes intermediate term debt of the US. This ETF also provides leveraged exposure to intermediate term Treasuries. Along with this Daily 20+ Year Treasury Bear 1x Shares (TYBS) is tracking the NYSE 20 Year Plus Treasury Bond Index which is also offering Bull and Bear shares series.
Short term performance of the Daily series of Direxion ETF is not very good for the fund’s future performance. The net asset value has declines to 14% since inception. However, Direxion is continuing efforts in maintaining the 300% performance level by introducing more types of leveraged and reverse share splits. The initial providers of 3x ETFs has diversified its product lines by introducing 2x products as well. It is now also focusing on non leveraged ETFs including the Airline Shares (FLYX) which has holdings in Transportation equities with an expense ratio of 0.55%.
Direxion ETFs are also now moving towards a series of reverse share splits on the leveraged long and short ETFs. These are intended to magnify the index performances by 200 to 300 percent. These are subject to be offered on a split adjusted basis not being affected by total market value of shares. The reverse split shares will include a 1 for 5 reverse split on shares of Daily Large Cap Bear 3x Shares (BGZ) and 1 for 3 reverse split of the shares of the Direxion Daily Small Cap Bear 3x Shares (NYSE: TZA).
- BGU Daily Large Cap Bull 3x Shares Russell 1000 300% RIY
- BGZ Daily Large Cap Bear 3x Shares Russell 1000 -300% RIY
- MWJ Daily Mid Cap Bull 3x Shares Russell Midcap Index 300% RMC
- MWN Daily Mid Cap Bear 3x Shares Russell Midcap Index -300% RMC
- TNA Daily Small Cap Bull 3x Shares Russell 2000 300% RTY
- TZA Daily Small Cap Bear 3x Shares Russell 2000 -300% RTY
- FLYX Airline Shares NYSE Arca Airline Index - XAL
- NUGT Daily Gold Miners Bull 2x Shares NYSE Arca Gold Miners Index 200% GDM
- DUST Daily Gold Miners Bear 2x Shares NYSE Arca Gold Miners Index -200% GDM
- FCGL Daily Natural Gas Related Bull 2x Shares ISE Revere Natural Gas Index™ 200% FUM
- FCGS Daily Natural Gas Related Bear 2x Shares ISE Revere Natural Gas Index™ -200% FUM
- RETL Daily Retail Bull 2x Shares Russell 1000® Retail Index 200% RU1SSRTL
- RETS Daily Retail Bear 2x Shares Russell 1000® Retail Index -200% RU1SSRTL
- ERX Daily Energy Bull 3x Shares Russell 1000 Energy 300% RGUSEL
- ERY Daily Energy Bear 3x Shares Russell 1000 Energy -300% RGUSEL
- FAS Daily Financial Bull 3x Shares Russell 1000 Financial Services 300% RGUSFL
- FAZ Daily Financial Bear 3x Shares Russell 1000 Financial Services -300% RGUSFL
- DRN Daily Real Estate Bull 3x Shares MSCI US REIT Index 300% RMZ
- DRV Daily Real Estate Bear 3x Shares MSCI US REIT Index -300% RMZ
- SOXL Daily Semiconductor Bull 3x Shares PHLX Semiconductor Sector Index 300% SOX
- SOXS Daily Semiconductor Bear 3x Shares PHLX Semiconductor Sector Index -300% SOX
- TYH Daily Technology Bull 3X Shares Russell 1000 Technology Index 300% RGUSTL
- TYP Daily Technology Bear 3X Shares Russell 1000 Technology Index -300% RGUSTL
- BRIL Daily BRIC Bull 2x Shares BNY Mellon BRIC Select ADR Index 200% BKBRIC
- BRIS Daily BRIC Bear 2x Shares BNY Mellon BRIC Select ADR Index -200% BKBRIC
- INDL Daily India Bull 2x Shares Indus India Index 200% III
- INDZ Daily India Bear 2x Shares Indus India Index -200% III
- CZM Daily China Bull 3x Shares BNY Mellon China Select ADR Index 300% BKTCN
- CZI Daily China Bear 3x Shares BNY Mellon China Select ADR Index -300% BKTCN
- DZK Daily Developed Markets Bull 3X Shares MSCI EAFE Index 300% MXEA
- DPK Daily Developed Markets Bear 3X Shares MSCI EAFE Index -300% MXEA
- EDC Daily Emerging Markets Bull 3X Shares MSCI Emerging Markets Index 300% MXEF
- EDZ Daily Emerging Markets Bear 3x Shares MSCI Emerging Markets Index -300% MXEF
- LBJ Daily Latin America Bull 3x Shares S&P Latin America 40 Index 300% SPLAC
- LHB Daily Latin America Bear 3x Shares S&P Latin America 40 Index -300% SPLAC
- SAGG Daily Total Bond Market Bear 1x Shares Barclays Capital US Aggregate Bond Index -100% LBUSTRUU
- TYNS Daily 7-10 Year Treasury Bear 1x Shares The NYSE 7-10 Year Treasury Index -100% AXSVTN
- TYBS Daily 20 Year Plus Treasury Bear 1x Shares NYSE 20 Year Plus Treasury Index -100% AXTWEN
- TYD Daily 7-10 Year Treasury Bull 3x Shares NYSE 7-10 Year Treasury Bond Index 300% AXSVTN
- TYO Daily 7-10 Year Treasury Bear 3x Shares NYSE 7-10 Year Treasury Bond Index -300% AXSVTN
- TMF Daily 20 Year Plus Treasury Bull 3x Shares NYSE 20 Year Plus Treasury Bond Index 300% AXTWEN
- TMV Daily 20 Year Plus Treasury Bear 3x Shares NYSE 20 Year Plus Treasury Bond Index -300% AXTWEN