Direxion Plans More Smart Beta ETFs

November 07, 2011

Direxion, the Newton-Mass based firm known for its triple-exposure leveraged and inverse funds, filed regulatory paperwork with the Securities and Exchange Commission last week to bring to market three intelligent beta funds, adding to its plans to market smart beta ETFs.

The three new intelligent beta funds are in addition to 11 such funds that Direxion registered with the SEC on Nov. 2. The three new funds, which focus on small-, large- and broad-market cap stocks, follow “enhanced-return indexes” that seek to outperform more traditional indexes that don’t utilize smart beta methodologies.

According to its filing, Direxion’s investment strategy involves examining the historical relationships between corporate factors and the performance of the related stocks across all eligible securities. After identifying winning correlations, the data is then used to identify and select stocks for the underlying indexes.

The new funds and their expense ratios follow. The three funds have a total net expense ratio of 0.85 percent, which includes 0.04 percent expense waiver/reimbursement through Dec. 1, 2012.

  • Quantum-ISE Enhanced Broad Market Shares
  • Quantum-ISE Enhanced Large-Cap Shares
  • Quantum-ISE Enhanced Small-Cap Shares

The filing didn’t specify tickers.


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