Direxion Shifts 10 ETFs To 3X Exposure

September 23, 2011

Direxion, the Newton-Mass.-based purveyor of leveraged and inverse funds, is shifting leverage on 10 of its existing ETFs to three times their underlying indexes from two, in a move effective Dec. 1 that’s aimed at aligning the funds with the company’s reputation as the premier sponsor of triple-leveraged ETFs.

The announcement comes in the same week that Direxion announced that next month it plans on  shuttering its plain-vanilla, single long exposure Direxion Airline ETF (NYSEArca: FLYX), which has amassed less than $3 million in assets since its December 2010 launch. Together the two moves tell the tale of a company that’s deciding to stick to its knitting to gather assets more effectively.

“It’s feedback,” Andy O’Rourke, Direxion’s director of marketing, said in a telephone interview, explaining the reasons for the move. “If you look at it, we’ve accumulated more assets in our 3X funds than in our 2x products,” he said, adding that the move is more about meeting demand from investors who want access to triple-exposure than it is about the specific sectors the ETFs are targeting.

The 10 funds, five bull-and-bear pairs, and their current and future names are:

  • Daily BRIC Bull 2X Shares ETF (NYSEArca: BRIL) will become Daily BRIC Bull 3X Shares
  • Daily BRIC Bear 2X Shares  (NYSEArca: BRIS) will become Daily BRIC Bear 3X Shares
  • Daily India Bull 2X Shares  (NYSEArca: INDL) will become Daily India Bull 3X Shares
  • Daily India Bear 2X Shares (NYSEArca: INDZ) will become Daily India Bear 3X Shares
  • Daily Gold Miners Bull 2X Shares (NYSEArca: NUGT) will become Daily Gold Miners Bull 3X Shares
  • Daily Gold Miners Bear 2X Shares  (NYSEArca: DUST) will become Daily Gold Miners Bear 3X Shares
  • Daily Natural Gas Related Bull 2X Shares (NYSEArca: GASL) will become Daily Natural Gas Related Bull 3X Shares
  • Daily Natural Gas Related Bear 2X Shares (NYSEArca: GASX) will become Daily Natural Gas Related Bear 3X Shares
  • Daily Retail Bull 2X Shares  (NYSEArca: RETL) will become Daily Retail Bull 3X Shares
  • Daily Retail Bear 2X Shares  (NYSEArca: RETS) will become Daily Retail Bear 3X Shares

 

The funds' tickers will all stay the same, O’Rourke said.

 

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