Direxion rolled out two ETFs today that offer leveraged and inverse exposure to the new communication services sector in the global industry classification standard.
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.
TAWK comes with an expense ratio of 1.10% while MUTE charges 1.07%. Both ETFs list on the NYSE Arca exchange.
The communication services sector combines the old telecommunications sector with media and internet companies that generally fell under the consumer discretionary or technology sectors previously. The end result is that the newly formed sector includes many of the companies falling under the FAANG acronym and related firms, such as Facebook, Netflix and Alphabet (Google’s parent company).
ProShares, another firm known for its inverse and leveraged ETFs, is set to launch four ETFs offering 3x, 2x inverse and leveraged exposures on the same index later this week.
Contact Heather Bell at [email protected]