Direxion introduces triple leveraged Brazil and South Korea ETFs

Apr 11th, 2013 | By | Category: Alternatives / Multi-Asset

Direxion, a leading US-based provider of alternative exchange-traded funds (ETFs), has launched two new leveraged equity ETFs, the Direxion Daily Brazil Bull 3x Shares ETF (BRZU) and Direxion Daily South Korea Bull 3x Shares ETF (KORU).

Direxion introduces triple leveraged Brazil and South Korea ETFs

Direxion has introduced new triple leveraged ETFs tracking Brazil (pictured) and South Korea.

The ETFs have been listed on the NYSE Arca and have net expense ratios of 0.95%.

The Direxion Daily Brazil Bull 3x Shares ETF seeks daily investment results, before fees and expenses, of 300% of the performance of the MSCI Brazil 25/50 Index. The MSCI Brazil 25/50 Index measures the equity market performance of mid- and large-cap Brazilian companies. It has significant exposure to Financials (26.2%) and Materials (17.8%).

Similarly, the Direxion Daily South Korea Bull 3x Shares ETF seeks daily investment results, before fees and expenses, of 300% of the performance of the MSCI South Korea 25/50 Index. The MSCI South Korea 25/50 Index measures the equity market performance of mid- and large-cap South Korean companies. It has significant exposure to Information Technology (30.9%) and Consumer Discretionary (17.5%).

Eric Falkeis, President of Direxion, said: “We conduct market analysis and reviews on a constant basis in order to identify new opportunities in various regions and sectors for sophisticated investors who actively manage their trading positions.”

He added: “Brazil and South Korea are emerging markets with many successful commodity, technology and automobile companies. Direxion is allowing investors to not only obtain more surgical exposure to these booming economies, but also to leverage their performance through innovative investment products.”

As well as amplifying one-way directional trading opportunities, the new ETFs enable investors to execute a wide variety of strategies, including hedging and pair trading. However, owing to the effects of daily compounding, which can cause returns to deviate from expectations, leveraged products such as these are typically best-suited to intra-day trading and other short-term holding periods.

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