Daily ETF Watch: China, Factor ETFs Launch

April 16, 2015

State Street Global Advisors and Direxion both rolled out funds today. For Direxion, the launch expanded its lineup of 200 percent exposure leveraged ETFs, while SSgA has added a U.S. fund to its lineup of ETFs based on the MSCI Quality Mix Index family.


Meanwhile, PowerShares has planned a high-income fund that hedges downside risk, and New York Life Investment Management has finalized its purchase of IndexIQ.


Direxion Adds Leveraged China Fund

Direxion debuted the Direxion Daily CSI 300 China A Share Bull 2X ETF (CHAU), which tracks one of the premier China indexes. It’s the same benchmark tracked by the $1.2 billion Deutsche X-trackers Harvest CSI 300 China A-Shares ETF (ASHR | D-53). CHAU aims to provide twice the daily return of its underlying index.


Direxion has been expanding its lineup of 2X Bull ETFs, as well as 1.25X Bull ETFs, as part of what appears to be a shift in direction from the 3X funds that established the firm as one of the leading providers of leveraged and inverse funds. Lower degrees of leverage may appeal to investors wary of the risks that come with triple leverage.


It comes with a 1.11% expense ratio.


SSgA Expands Quality Mix Lineup

With the launch of the SPDR MSCI USA Quality Mix ETF (QUS), SSgA has added a domestic fund to its lineup of internationally focused Quality Mix ETFs. The fund comes with an expense ratio of 0.15 percent, the same cost as the single-factor U.S. ETFs that were launched by iShares in conjunction with the Arizona State Retirement System.


QUS tracks a benchmark comprising three equally weighted indexes: the MSCI USA Value Weighted Index, the MSCI USA Quality Index and the MSCI USA Minimum Volatility Index.


The new fund brings the total lineup of Quality Mix SPDRs to 13.


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