Direxion rolls out new leveraged US equity and Treasury bond ETFs

Aug 1st, 2014 | By | Category: Alternatives / Multi-Asset

Direxion Investments, a leading provider of short and leveraged exchange-traded funds, has listed three new ETFs on the NYSE Arca.

Direxion rolls out new leveraged US equity and treasury bond ETFs

Brian Jacobs, President of Direxion Investments.

The products are 2x leveraged long ETFs, meaning they deliver 200% of the daily performance of their respective benchmark, before expenses.

They are linked to the NYSE 7-10 Year Treasury Bond,S&P Mid Cap 400 and Russell 2000 indices, offering exposure to intermediate-term Treasury bonds, US mid-cap and US small-cap equities respectively.

Brian Jacobs, President of Direxion Investments, said: “Investors continue to share with us that they are looking for a wider selection of strategies to obtain targeted, leveraged equity-market exposure at a reasonable price, and we are responding to their feedback. These three ETFs are part of our effort to build up our suite of 2X leveraged funds and provide as many options as possible for experienced traders to achieve risk-managed returns regardless of market conditions, or their preferred amount of leverage.”

He added: “We take input from our clients very seriously, and we will continue to develop innovative and cost-efficient alternative strategies that meet their needs. Leveraged ETFs can be extremely effective tools for those who take the time to understand their associated risks. We are always on the lookout for ways to maximize the selection of leveraged ETFs and other solutions that challenge old standards.”

The ETFs are as follows:

Direxion Daily 7-10 Year Treasury Bull 2X Shares (SYTL)
Direxion Daily Small Cap Bull 2X Shares (SMLL)
Direxion Daily Mid Cap Bull 2X Shares (MDLL)

They each have a net expense ratio of 0.60%.

Like all leveraged ETFs, the new products are intended only for traders with an in-depth understanding of the risks associated with seeking leveraged investment results, and who plan to actively monitor and manage their positions.

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