Why So Little Volume in the Direxion Triple ETFs?

It seems as if every day trader I know has fallen under the spell of the leveraged firepower of the Direxion triple ETFs. Oddly, only the first batch of ETFs that were rolled out in November have caught fire. These include the familiar tickers like Russell 1000 Financials Bullish 3x ETF (FAS), Russell 1000 Financials Bearish 3x ETF (FAZ), Russell 2000 Bullish 3x ETF (TNA), Russell 2000 Bearish 3x ETF (TZA), Russell 1000 Bullish 3x ETF (BGU), Russell 1000 Bearish 3x ETF (BGZ), Russell 1000 Energy Bullish 3x ETF (ERX) and Russell 1000 Energy Bearish 3x ETF (ERY).

The most recent group of ETFs, which I discussed in Direxion Triple TFs Add New Horses to Stable, has attracted considerably less interest. Even though they were launched at the end of December, only two of the six ETFs, Emerging Markets Bull 3X Shares (EDC) and Technology Bull 3x Shares (TYH), have surpassed the 100,000 single day volume mark and TYH just grazed that bar, with a high volume mark of 101,900. In the chart below, a snapshot taken just past the halfway point of today’s session, the six new ETFs can be seen floundering at the bottom.

Juice is not the problem, as emerging markets (EDC and EDZ) and technology (TYH and TYP) are consistently among the most volatile corners of the market.

The comments on yesterday’s semi-rhetorical question were excellent. Let’s see what sort of explanation the collective wisdom can come up with today.

Comments

[no can do:]

i'll answer your question with a question of my own: why cant you add those ticker symbols to a portfolio in google finance?

Feb 04 03:49 PM

[Etf Planet:]

I think it will just take time. The first batch of triples had a slow start, and then exploded. The same with the Proshares 2x funds, they went for months with low volume until they finally caught on.

Feb 05 09:30 AM