Direxion launches 3x leveraged pharmaceuticals ETF

Nov 15th, 2017 | By | Category: Equities

Direxion, the US-based leveraged and inverse ETF specialist, has launched the Direxion Daily Pharmaceutical Bull 3X Shares (PILL US). The ETF seeks to achieve 300% of the daily performance of the Dynamic Pharmaceutical Intellidex Index, an index composed of 30 US pharmaceutical companies identified by NYSE’s Intellidex methodology as having the greatest potential for capital appreciation.

Direxion launches 3x leveraged pharmaceuticals ETF

The ETF provides 3x leveraged exposure to an an index of 30 US pharmaceutical stocks.

Sylvia Jablonski, managing director at Direxion, commented: “The pharmaceutical sector is continuously evolving, with research and development leading to new product innovation and availability. The launch of PILL is timely, allowing traders to magnify their short-term bullish perspective on the popular sector.”

The Intellidex methodology is designed to identify those stocks within a particular market segment – in this case pharmaceuticals – that have the greatest potential for capital appreciation by evaluating companies based on price momentum, earnings momentum, quality, management action and value.

Interestingly, this is not the first time Direxion has used the ticker symbol PILL. The firm launched an ETF called the Direxion Daily Pharmaceutical & Medical Bull 2X Shares with the same ticker back in September 2015. This fund, along with three others, was closed in March this year due to the its inability to attract sufficient investment assets.

Direxion already provides ETFs that offer 3x bull exposure to biotech and healthcare respectively, along with a number of other sectors and sub-sectors, including financials, gold miners, energy, semiconductors, technology, gas exploration & production, real estate, aerospace and defense, retail, homebuilders, utilities, transportation and regional banks.

The standout funds among these are the $1.5 billion Direxion Daily Financial Bull 3X Shares (FAS US) and the $1.3bn Direxion Daily Gold Miners Index Bull 3X Shares (NUGT US).

PILL has annual fees of 1.12%.

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