Direxion Plans 24 Single-Stock Levered ETFs

Direxion is the latest issuer to file for ETFs to track leveraged and inverse results of single stocks, focusing on some of the biggest names in the Nasdaq-100. 

The initial filing late Thursday show the geared-ETF firm plans to offer the daily results of shares in Apple, Microsoft, Amazon, Alphabet, Netflix, Meta Platforms and Nvidia in a double-leveraged bull form and in single and double inverse forms. A second filing made the same day indicates the issuer also plans to launch funds offering the same esposures for shares in Tesla. 

Neither filing includes information like tickers or expense ratios. 

Under the “ETF Rule,” these funds could become effective with the SEC as early as May 4. 

Direxion is following behind newcomer issuer AXS Investments, which filed for doubled bull and bear funds tracking Tesla, Nvidia, ConocoPhillips, Boeing, PayPal, Wells Fargo, Pfizer, SalesForce and Nike last week. 

(Use our stock finder tool to find an ETF’s allocation to a certain stock.) 

But it’s not clear if any of these funds will arrive at their automatic effectiveness date without regulatory delay. The SEC has been reviewing complex exchange-traded products since October at the request of Chairman Gary Gensler under a broader remit of increasing investor protections, and the concentrated nature of these proposed funds could draw questions over whether they could inflame stock price volatility during market turbulence. 
 

Contact Dan Mika at [email protected], and follow him on Twitter