By Jason Neault
As we predicted, the Direxion 3X bull and bear ETFs have been a huge success, and are now awash in volume daily. Traders love the big daily moves in these funds with the market’s current volatility. Wednesdasy was the launch of six more 3X funds from Direxion, with bull and bear MSCI EAFE, Emerging Markets, and Technology shares. Here is a rundown of the new 3X funds that Direxion has added to their lineup:
(NYSEARCA:DZK) – Developed Markets Bull 3X Shares – MSCI EAFE
(NYSEARCA:DPK) – Developed Markets Bear 3X Shares – MSCI EAFE
(NYSEARCA:EDC) – Emerging Markets Bull 3X Shares – MSCI Emerging Markets
(NYSEARCA:EDZ) – Emerging Markets Bear 3X Shares – MSCI Emerging Markets
(TYH) – Technology Bull 3X Shares – Russell 1000 Technology
(TYP) – Technology Bear 3X Shares – Russell 1000 Technology
Trading in these new ETFs is likely to be light at first, but expect more liquidity in the coming months as more investors and traders become aware of these new funds, similar to their previous issues. As for the expense ratios for these new triple return ETFs, they are listed from 94 to 102 basis points, which is fair for 3X leverage.
According to the Direxion website, there will be even more 3X funds on the way. In a prospectus Direxion is showing plans for bull and bear funds for homebuilders, real estate, clean energy, Latin America, India, China, and the ever popular BRIC index.