Direxion Launches Leveraged Play On China, LatAm

December 03, 2009


Direxion is launching four new leveraged funds that will offer investors short-term bullish and bearish takes on both China and Latin America.

The new funds will provide 300 percent and -300 percent of the daily performance of the BNY China Select ADR Index and the S&P Latin America 40 Index. They are designed to offer investors long and short exposure to those regions on a short-term basis.

They are:

  • Direxion Daily China Bull 3x Shares (NYSEArca: CZM)
  • Direxion Daily Latin America 3x Bull Shares (NYSEArca: LBJ)
  • Direxion Daily China Bear 3x Shares (NYSEArca: CZI)
  • Direxion Daily Latin America 3x Bear Shares (NYSEArca: LHB)

The BNY China Select ADR Index tracks depositary receipts of China-based companies traded in the U.S., while the S&P Latin America 40 Index is a large-cap-weighted index that focuses on blue chips headquartered throughout the region.

Direxion's new lineup offers the highest amount of leverage currently available in the space.

“The emerging markets sector is increasingly tradable in today’s evolving investment landscape,” said Direxion Shares President Dan O’Neill in a release. According to O'Neill, the new funds hope to capitalize on what he calls "tremendous trading opportunities" in the country- and region-specific sectors.

ProShares already offers ETFs providing 200 percent and -200 percent daily exposure to China, via the ProShares Ultra FTSE/Xinhua China ETF (NYSEArca: XPP) and ProShares UltraShort FTSE/Xinhua China (NYSEArca: FXP) ETFs. It does not, however, have competing Latin America funds.

Direxion isn’t new to leveraged funds. Just last week, the company registered with the SEC a lineup of 3x leveraged funds linked to the semiconductor segment and the S&P 500 Index. The company is also behind the Direxion Emerging Markets Bull 3x Shares (NYSEArca: EDC), among others.

You can read the full release here.


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