Direxion, a pioneer in providing alternative investment strategies to sophisticated investors, is launching five new Direxion Daily ETFs to its existing lineup of multi-directional funds.
The new ETFs include: Bull and Bear funds that seek 300% of the daily performance, or 300% of the inverse of the daily performance (before fees and expenses) of the S&P Materials Select Sector Index; Bull and Bear index funds that seek 300% of the daily performance, or 300% of the inverse of the daily performance (before fees and expenses) of the S&P Healthcare Select Sector Index; and a Bear index fund that seeks 100% of the inverse of the daily performance of the MSCI US Broad Market Index (before fees and expenses). Funds offered by other sponsors covering these same sectors are currently trading large volumes and garnering substantial assets.
There is no guarantee that the new ETFs will achieve their objectives. The funds are intended for use only by sophisticated investors who understand the risks associated with seeking daily investment results and plan to actively monitor and manage their positions in the funds.
“We understand that market direction matters, so we strive to offer an alternative to static investment strategies while delivering exposure to the various markets in which investors have high levels of interest, such as basic materials and healthcare,” said Direxion President Dan O’Neill.
“Our 3x Daily Direxion leveraged funds offer magnified benchmark exposure for investors who actively manage their trading positions. Sophisticated investors can use them to take advantage of short-term market movements and opportunities, keeping in mind that these funds are designed to complement core investment strategies, not to replace them,” he added.
The Direxion Daily Total Market Bear 1X Shares offers investors a way to hedge against adverse movements in the broad markets at a lower leverage point.
Additionally, Direxion is announcing that effective June 15, 2011, the trading symbols for the Direxion Daily China Bull 3X Shares, and the Direxion Daily China Bear 3X Shares will change to YINN and YANG.
The Direxion Daily China Bull 3X and Direxion Daily China Bear 3X ETFs seeks daily investment results of 300% of the price performance, or 300% of the inverse of the daily performance (before fees and expenses), of the BNY Mellon China Select ADR Indexes. There is no guarantee the funds will meet their stated investment objectives.
