Daily ETF Watch: 6 ETFs Go Live

May 28, 2015

Direxion Gets Busy

Direxion is putting the Direxion Daily Gold Bull 3X Shares (BAR) to rest, with the fund’s last day of trading taking place on June 19 and liquidation occurring on June 26.

 

The fund’s complementary inverse ETF, the Direxion Daily Gold Bear 3X Shares (BARS) was liquidated at the end of last year due to failure to accumulate assets under management. Similarly, BAR currently has less than $3 million in AUM.

 

ProShares has had better luck with its double exposure gold ETFs, the ProShares Ultra Gold ETF (UGL) and the ProShares UltraShort Gold ETF (GLL), which have $96 million and $69 million in AUM, respectively. It looks like 3X leveraged and inverse exposure was just a step too far for investors.

 

The closure of BAR is the 23rd announced fund closure year-to-date.

 

3X Oil, Biotech Funds Launching              

While BAR is taking its final bow, Direxion is rolling out four more triple-exposure funds, in the form of two bull-and-bear pairs.

 

The funds, their tickers and their annual expense ratios are as follows:

  • Direxion Daily S&P Biotech Bull 3X Shares (LABU), 1.04 percent, or $95 for each $10,000 invested
  • Direxion Daily S&P Biotech Bear 3X Shares (LABD), 0.95 percent
  • Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares (GUSH), 1.04 percent    
  • Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 3X Shares (DRIP), 0.95 percent

 

Both pairs of funds represent areas that are of a great deal of interest to investors and subject to a significant diversity of opinions; both pairs track “Select” industry indexes provided by S&P Dow Jones Indices.

 

More Homebuilders ETFs Planned
Direxion has also put two more funds into registration targeting the homebuilders industry. Several years ago, the firm filed for the Direxion Daily S&P Homebuilders Bull 3X Shares and the Direxion Daily S&P Homebuilders Bear 3X Shares, which have yet to launch.

 

The updated filing includes the Direxion Daily S&P Homebuilders Bull 2X Shares and the Direxion Daily S&P Homebuilders Bear 2X Shares, which, like the 3X funds, are slated to track the S&P Homebuilders Select Industry Index.

 

Homebuilders have been getting some attention from geared fund providers lately. ProShares filed for double and triple exposure ETFs tracking a Dow Jones-branded homebuilders index just last month. Those funds include the following:

 

  • ProShares Ultra Homebuilders, 200 percent
  • ProShares UltraShort Homebuilders, -200 percent
  • ProShares UltraPro Homebuilders, 300 percent
  • ProShares UltraPro Short Homebuilders, -300 percent

 

The Direxion filing did not include tickers, but the “Bull” funds will come with an expense ratio of 1.04 percent, while the “Bear” funds will charge 0.95 percent.

 

 

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