Daily ETF Watch: 2X-S&P 500 ETF To Launch

May 27, 2014

Direxion is adding another levered ETF to its lineup.

Direxion on Wednesday, May 28, is launching the Direxion Daily S&P 500 Bull 2X Shares (SPUU), bringing to more than four dozen the number of leveraged and inverse funds from the New York-based fund sponsor that built its reputation on such strategies.

The fund is launching at a time when the S&P 500 Index is reaching record highs on top of its 30 percent surge in 2013. Industry observers are forecasting another record year for the S&P after a slow first quarter tamed by severe cold weather, a slowdown in China and rising tensions in Ukraine.

SPUU was formerly named the Direxion Daily Large Cap Bull 2X Shares (SFVL), which tracked the NYSE U.S. 100 Index, according to a recent regulatory filing. The fund’s new S&P 500 Index will track the 500 largest companies in the U.S.

While the cost of the fund wasn’t immediately available, Direxion typically prices its inverse and leveraged ETFs with net annual expense ratios of 0.95 percent, or $95 for each $10,000 invested.

The launch-date announcement came in an electronic communique from NYSE Arca, the venue where the fund will have its primary listing.

Filing

 

ETF Series Solutions has filed regulatory paperwork for its Deep Value ETF that will track the TWM Deep Value Index, a sliver of 20 constituents of the S&P 500 Index that are deemed to be deeply undervalued based on their earnings and cash flows characteristics.

The fund is another play on “smart beta” that is becoming all the rage in the ETF space as issuers race to market products that seek to slice and dice benchmarks such the S&P 500 based on factors like “value,” “volatility” and “momentum,” among others.

 

The fund has an expense ratio of 0.80 percent, or $80 for every $10,000 invested.

 

 

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