ETF Watch: Direxion Plans 3 Funds

Direxion has filed for three more leveraged/inverse ETFs, two of which cover Chinese internet stocks.

The Direxion Daily CSI China Internet Bull 2X Shares and the Direxion Daily CSI China Internet Bear 1X Shares are tied to the CSI Overseas China Internet Index, with the bull fund offering twice the index’s daily return and the bear fund offering -1X the index’s return. The funds will come with expense ratios of 1.11% and 0.82%, respectively.

Their underlying index covers mainland China companies that provide internet software and services or retail internet transactions. Companies generally have at least $500 million in market capitalization.

The third fund in the filing is the Direxion Daily High Yield Bear 1X Shares, which offers the daily inverse return of the Barclays Capital High Yield Very Liquid Index, which covers USD-denominated corporate junk bonds with at least $500 million outstanding. It is expected to charge an expense ratio of 0.47%.

All three funds will list on the NYSE Arca exchange. The filing did not include tickers.

Contact Heather Bell at [email protected].