Direxion Files To Prepare 36 ETFs For Launch

April 16, 2010

Direxion, the Newton, Mass.-based firm known for its so-called geared ETFs, filed to launch a total of 36 funds, including 17 bull-and-bear, triple-exposure pairs that rebalance daily and are focused largely on Asian and/or emerging market countries, commodities and energy.

The filing comes about three weeks after the Securities and Exchange Commission put on hold any future or outstanding filings by fund companies seeking permission to offer actively managed and leveraged ETFs that use derivatives such as swaps to achieve their investment strategies. All the proposed Direxion funds outlined in its latest filing aren’t affected by the SEC’s review.

“We are preparing to make these funds available when we think it’s a good time,” Andy O’Rourke, the company’s director of marketing, said in a telephone interview. “Simply because we are filing for all these at the same time doesn’t mean that we’ll be rolling them out at the same time.”

The filing also outlined two funds focused on the auto and airline industries that aren’t leveraged, offering investors straight bullish exposure. Those two funds have an annual management fee of 0.35 percent, while the 17 pairs of triple-exposure ETFs all have 0.75 percent expense ratios. Direxion didn’t identify any trading symbols, though all will trade on the New York Stock Exchange.

Asia And Emerging Markets ETFs

The bull-and-bear pairs of funds focused on Asia include the Direxion Daily Indonesia Bull 3X Shares and the Direxion Daily Indonesia Bear 3X Shares; the Direxion Daily Malaysia Bull 3X Shares and the Direxion Daily Malaysia Bear 3XShares; the Direxion Daily South Korea Bull 3X Shares and the Direxion Daily South Korea Bear 3X Shares; the Direxion Daily Taiwan Bull 3X Shares and the Direxion Daily Taiwan Bear 3X Shares; the Direxion Daily Thailand Bull 3X Shares and the Direxion Daily Thailand Bear 3X Shares.

The geared funds focused on other emerging markets include the Direxion Daily Brazil Bull 3X Shares and the Direxion Daily Brazil Bear 3X Shares; as well as the Direxion Daily Russia Bull 3X Shares and the Direxion Daily Russia Bear 3X Shares.

Commodities-Related ETFs

The filing included the Direxion Daily Commodity Related Bull 3X Shares and the Direxion Daily Commodity Related Bear 3X Shares, a pair of funds that appeared in a previous Direxion filing under the names Commodity Bull 3X Shares and Commodity Bear 3X Shares. Both filings said the funds will track the Morgan Stanley Commodity Related Index.

The other commodity-related funds the company filed to offer include the Direxion Daily Canada Bull 3X Shares and Direxion Daily Canada Bear 3X Shares; the Direxion Daily Agribusiness Bull 3X Shares and the Direxion Daily Agribusiness Bear 3X Shares; the Direxion Daily Global Infrastructure Bull 3X Shares and the Direxion Daily Global Infrastructure Bear 3X Shares; the Direxion Daily Gold Miners Bull 3X Shares and the Direxion Daily Gold Miners Bear 3X Shares; the Direxion Daily Home Construction Bull 3X Shares and the Direxion Daily Home Construction Bear 3X Shares.

Energy-Related ETFs

The company also prepared two pairs of energy-related ETFs for rollout, including the Direxion Natural Gas Related Bull 3X Shares and the Direxion Natural Gas Related Bear 3X Shares; as well as the Direxion Daily Wind Energy Bull 3X Shares and the Direxion Daily Wind Energy Bear 3X Shares, according to its latest filing.

Water, Regional Banking And Plain-Vanilla ETFs

The filing also prepares for launch the Direxion Daily Regional Banks Bull 3X Shares and the Direxion Daily Regional Banks Bear 3X Shares; as well as the Direxion Daily Water Bull 3X Shares and the Direxion Daily Water Bear 3X Shares.

The two ETFs that don’t offer investors leverage include the Direxion Auto Shares fund and the Direxion Airline Shares ETF. They will be based on the Indus Global Auto & Auto Suppliers Index and the Indus Global Airline & Airline Suppliers Index, respectively.

 

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