By the ETF Research team at Direxion.
Traders with an interest in bonds and treasury notes can take their cues from prior instances of economic crisis to inform how they may want to position themselves as the economic drama unfolds.
A proposal by a cabal of dominant ETF issuers that calls on exchanges to adopt a new naming convention for exchange-traded products has prompted a backlash from smaller, innovative rivals who claim the move is anti-competitive.
Sensing an opportunity, index providers are developing new indices capturing trends associated with the Covid-19 pandemic. Frankfurt-based Solactive has launched the Solactive Remote Work Index, which is set to underlie a forthcoming ETF from Direxion, while San Diego-based EQM Indexes has introduced four indices with themes such as ‘Work from Home’, ‘Stay at Home’, ‘Covid-19 Stocks’, and ‘Global Pandemic Disruption’.
Inverse and leveraged ETF specialist Direxion has made several adjustments to its product line-up in response to the unprecedented market volatility arising from the Covid-19 pandemic and oil price war. The changes include scaling down the magnitude of exposure offered by ten of its most highly leveraged ETFs, as well as permanently shuttering eight ETFs no longer considered to be economically viable.
Direxion has unveiled three new ETFs on NYSE Arca targeting strategic long-term investment themes. Two of the funds – the Direxion MSCI USA ESG – Leaders vs. Laggards ETF (ESNG US) and the Direxion S&P 500 High Minus Low Quality ETF (QMJ US) – utilize a long/short approach to establish more pronounced exposure to ESG and quality factor risk premia within the US equity market, while the third – the Direxion Flight to Safety Strategy ETF (FLYT US) – invests in a portfolio of safe-haven assets. Dave Mazza, Managing Director and Head of Product at Direxion, commented, “These strategies allow a broader audience to benefit from our expertise in delivering smart, precise exposure to distinct and strategically focused investment opportunities.”
By the ETF research team at Direxion Investments.
Negative-yielding debt has declined from its all-time peak, but it still represents close to 24% of all global bonds. Until recently, the idea of negative-yielding debt was unfeasible to many and now it is nearly a quarter of all debt issued around the world. Even $900 billion of corporate bonds trade at negative yields highlighting the pervasiveness of this phenomenon.
Direxion has added two pairs of funds, linked to the S&P 500 High Beta Index and Dow Jones Internet Composite, to its line-up of triple leveraged and inverse ETFs. Dave Mazza, Managing Director at Direxion, commented, “We’re very excited to offer traders leveraged exposure to these two indexes to express bullish or bearish positions.”
By the ETF Research Team at Direxion. With an increase in chatter about the next recession lurking right around the corner, it is notable that the Manufacturing PMI slipped into contraction territory to 49.1 in August after expanding for 35 months. However, the Non-Manufacturing PMI stands at 56.4 and has now expanded for 115 months and firmly beat survey expectations. Just as commuters around the globe are reminded to mind the gap when entering and exiting trains, investors should stay attuned to the gap between Manufacturing and Non-Manufacturing PMIs.
By the ETF Research Team at Direxion.
August is supposed to be the quietest month of the year – the summer doldrums. And yet, this August has proven to be anything but quiet, thanks to corporate earnings and the most highly anticipated FOMC meetings in years.
By the ETF Research Team at Direxion.
Russian stocks surged more than any other international market in June, adding another wrinkle to what is already one of the most closely watched global relationships. This bullish surge from Russia is especially apparent in the Direxion Daily Russia Bull 3X Shares ETF (RUSL US), which tracks the MVIS Russia Index. RUSL topped its prior high early in June and has since added another 13.5% to approach levels it hasn’t seen since the start of 2018.