Six New 3x ETFs from Direxion

Direxion Shares introduced six new ETFs today, all with 3x leverage.  You can now get 3x exposure to the daily moves and inverse daily moves of the MSCI Developed International Markets Index,  MSCI Emerging Markets Index, and the Russell 1000 Technology Index.

Direxion is a relative newcomer to the ETF scene but has found an audience with its highly leveraged 3x products.  The eight other 3x ETFs launched only six weeks ago on November 6 but are already attracting huge volume.  Two have exceeded 10 million shares traded on multiple occasions, five trade more than a million shares a day, and one is “struggling” along at 500,000 shares per day.

These funds are not for the faint of heart.  As we previously reported, one of the ETFs from the first batch set a record by doubling in price in only 7.5 hours.  Investors also need to be aware that the leverage is reset daily, which means that longer-term performance can be significantly more or less than 3x the index.  However, knowledgeable day traders and veteran investors will welcome these new weapons into their trading arsenals.

The six new 3x ETFs are:

• Direxion Developed Markets Bull 3x Shares (DZK)
• Direxion Emerging Markets Bull 3x Shares (EDC)
• Direxion Technology Bull 3x Shares (TYH)
• Direxion Developed Markets Bear 3x Shares (DPK)
• Direxion Emerging Markets Bear 3x Shares (EDZ)
• Direxion Technology Bear 3x Shares (TYP)