ETFMG Offering Leveraged ETFs

Today, ETF Managers Group rolled out three ETFs that offer leveraged and inverse takes on some of the indexes underlying the firm’s existing ETFs.

The ETFMG 2x Daily Travel Tech ETF (AWYX), the ETFMG Prime 2x Daily Junior Silver Miners ETF (SILX) and the ETFMG Prime 2x Daily Inverse Junior Silver Miners (SINV) offer 2x exposure to the indexes underlying the $386 million ETFMG Travel Tech ETF (AWAY) and the $1.1 billion ETFMG Prime Junior Silver Miners ETF (SILJ).

All three funds come with expense ratios of 0.95% and list on the NYSE Arca.

AWAY launched in early 2020 and covers travel-related technology, like companies that operate sites that help with reservations or ride-sharing apps.

Meanwhile, SILJ’s underlying index tracks small-cap silver mining and exploration firms. With the latest launches, SILJ’s index is tied to both a leveraged and an inverse ETF, while AWAY’s index underlies a leveraged version.

That makes sense, given that the travel industry was heavily beaten down during the pandemic and is experiencing an upswing.

Direxion and ProShares have long had an informal duopoly on 2x leveraged and inverse ETFs. FactSet Director Of Global Fund Analytics Elisabeth Kashner notes that the launch of these three ETFs essentially breaks up that duopoly. 

The new additions also bring ETFMG’s total lineup to 17 ETFs. Just prior to these launches, the firm had a total of nearly $8 billion in assets under management.

Contact Heather Bell at [email protected]