If Xander Cage (AKA Triple X) were ripping trades on a fixed income desk, he’d be in a tizzy today. Moreover, our boy Vin Diesel would be slipping into his outstanding Boiler Room persona named Chris to talk about what’s new in town – and that would be the Direxion Shares 3x Bond ETFs.
You heard me right, and call it what you want – juiced fixed income, bonds on crack, nitroglycerin-based treasuries – but traders can now access leveraged 10- and 30-year U.S. Treasury benchmarks both long and short, combined with 3x the upside or downside.
Even if your name is Yorgi and you lead a group called “Anarchy 99,” you’ll still be all over these new ETFs. That is, if you’re an equity guy trying to game fixed income!
Here’s the scoop. Direxion added four ETFs today – two are bull funds and two are bearish:
The bullish funds are:
- Direxion Daily 10-Year Treasury Bull 3x Shares (TYD)
- Direxion Daily 30-Year Treasury Bull 3x Shares (TMF)
The bear funds are:
- Direxion Daily 10-Year Treasury Bear 3x Shares (TYO)
- Direxion Daily 30-Year Treasury Bear 3x Shares (TMV)
We’ve certainly enjoyed reviewing the incredible success of all of the new Direxion ETFs. For example: FAS trades over 200mm shares a day. How cool is that?
Direxion mentions another new wrinkle in today’s press release. They are changing the name of all funds to include the word “Daily” in the title. They are going to great lengths to make sure folks understand how these funds are designed for day traders and not meant as long-term investments! We applaud them for that, as we chuckle time and time again when we read other pundits slamming leveraged ETF product for not performing well. Rather than point fingers or assign blame, they should find time to read the prospectus and maybe do a little homework.
I’ll close with a special quote from Agent XXX – as those who do trade the leveraged ETFs are playing with nitroglycerin…..
Xander Cage: [to Yorgi] Yeah; cars, boards, bikes. I like anything fast enough to do something stupid in.