ETF Week: Geared Funds For New Sector

This past week was fairly eventful, with ProShares and Direxion launching leveraged and inverse ETFs tracking the new GICS communication services sector. Direxion also debuted a suite of 10 relative weighting ETFs taking long and short positions on opposing macro trends. iShares outlined plans to launch three more target-maturity municipal bond ETFs, while Global X filed for a cloud computing ETF.

Below is a roundup of the key events in the ETF space during the week ended Jan. 18:

Direxion Adds Leveraged/Inverse ETFs For New Sector
The Direxion Daily Communication Services Index Bull 3X Shares (TAWK) and the Direxion Daily Communication Services Index Bear 3X Shares (MUTE) respectively provide three times the performance and three times the inverse of the performance of the Communication Services Select Sector Index, the same index tracked by the Communication Services Select Sector SPDR Fund (XLC) that launched in June 2018. (Read: New Sector Gets 3x/-3x ETFs)

ProShares Debuts Communication Services Suite
ProShares rolled out a whole family of ETFs based on the new communication services sector. The four funds offer 2x and 3x leveraged and inverse exposure. They include the following:

• ProShares UltraShort Communication Services Select Sector (YCOM)
• ProShares UltraPro Short Communication Services Select Sector (SCOM)
• ProShares Ultra Communication Services Select Sector (XCOM)
• ProShares UltraPro Communication Services Select Sector (UCOM)

(Read: More Leveraged/Inverse ETFs For New Sector)

Direxion Rolls Out Long/Short ETFs
Direxion recently debuted a family of 10 ETFs, consisting of five pair of ETFs tracking opposing macro trends. The portfolios will weight one trend at 150% long exposure and the other opposing trend at 50% short exposure. Each ETF has a counterpart that uses the exact opposite weighting scheme. (Read: 5 Long/Short ETF Pairs Debut)

iShares To Expand Target-Maturity Muni Lineup
A recent filing from BlackRock’s iShares arm outlines plans for the launch of three new target-maturity municipal bond ETFs that will expand the range of its iBonds muni ETF family by a few years. The proposed ETFs are as follows:

• iShares iBonds Dec 2026 Term Muni Bond ETF
• iShares iBonds Dec 2027 Term Muni Bond ETF
• iShares iBonds Dec 2028 Term Muni Bond ETF

(Read: iShares Plans Target Maturity Bond ETFs)

Global X Files For Cloud Computing ETF
First Trust’s one-of-a-kind $1.7 billion cloud computing ETF could be getting a direct competitor, based on Global X’s latest filing. The Global X Cloud Computing ETF will track the Indxx Global Cloud Computing Index, which is global in scope and aims to capture the performance of companies likely to benefit from the growing adoption of cloud computing technology. (Read: Cloud Computing ETF Planned)

Contact Heather Bell at [email protected]