Direxion Launches New Boeing, Exxon Leveraged ETFs
- The new ETFs offer tactical trading options for Boeing and Exxon Mobil.
- The launch coincides with record flows into both leveraged long and defensive ETFs.
- Boeing faces China delivery challenges due to trade tensions.
Direxion has expanded its single-stock leveraged ETF lineup with four new products tracking Boeing Co. (BA) and Exxon Mobil Corp. (XOM), giving traders amplified exposure to the aerospace and energy sectors during a period of market uncertainty.
The new funds, which began trading Wednesday, include the Direxion Daily BA Bull 2X Shares (BOEU) and Direxion Daily BA Bear 1X Shares (BOED), along with the Direxion Daily XOM Bull 2X Shares (XOMX) and Direxion Daily XOM Bear 1X Shares (XOMZ), according to company filings.
The timing of these specialized funds is noteworthy as investors are simultaneously pouring record amounts into both leveraged long ETFs and defensive products, like cash and gold ETFs, according to an X post by Eric Balchunas, Bloomberg senior ETF analyst. This unusual dual strategy of buying the dip while hedging against market volatility demonstrates traders' conflicting market sentiments in the current economic environment.
"Active traders thrive on the catalysts these two headline-heavy stocks provide," said Douglas Yones, Direxion CEO, in the company's press release. He noted that Boeing catalysts include "tariff-related news, regulatory announcements, airline orders and production issues," while Exxon drivers could be "crude oil prices, associated demand fluidity and geopolitical moves."
Tools for Volatile Market Movers
The bull funds aim for daily returns triple their target stocks' performance, while the bear funds seek the inverse of the daily performance, according to Direxion.
Each fund carries a 0.97% net expense ratio after fee waivers through September 2026, according to the prospectus. Without these waivers, the gross expense ratio would be 0.99%.
Boeing ETFs Arrive Amid China Challenges
The Boeing-focused products arrive as the aerospace giant faces challenges in China, a key market for the company.
Boeing CEO Kelly Ortberg revealed Wednesday that "China has stopped taking delivery of aircraft due to the tariff environment," according to CNBC. The company has been forced to fly some 737 Max planes back to the U.S. from China.
Boeing shares gained about 6% Wednesday morning following the company's first-quarter earnings report, which showed a narrower-than-expected loss, CNBC reported. The aerospace manufacturer has been working to recover from production issues while navigating trade tensions.
Exxon Earnings
Exxon reported earnings of $33.5 billion for 2024, down from $38.6 billion a year earlier, according to CNBC. In its most recent quarter, the company posted adjusted profit of $7.4 billion, or $1.67 per share, beating analyst estimates of $1.56 per share. Exxon is scheduled to report its first-quarter 2025 results in May.
