Direxion META Single-Stock ETFs Wrap Mag-7 Lineup

Direxion META Single-Stock ETFs Wrap Mag-7 Lineup

Leveraged long and short exposure to Meta is aimed at active traders.

Wealth Management Editor
Reviewed by: etf.com Staff
Edited by: Ron Day

Direxion, which manages more than $40.1 billion in 85 ETFs, launched a pair of funds that offer leveraged long and short exposure to Meta Platforms Inc., filling out its Magnificent Seven single-stock lineup. 

The Direxion Daily META Bull 2X Shares ETF (METU) and the Direxion META Bear 1X Shares ETF (METD) complete Direxion’s Mag Seven single-stock ETF lineup that was initiated in August 2022 with exchange-traded funds offering levered and short exposure to Apple Inc. and Tesla Inc. New York-based Direxion added single-stock ETF exposure to Alphabet Inc., Amazon.com Inc. and Microsoft Corp.  in September 2022 and Nvidia Corp. a year later.

The deliberate pace of the rollout, which began shortly after the Securities and Exchange Commission started allowing single-stock ETFs, was pegged to anticipated investor appetite, according to Ed Egilinsky, managing director at New York-based Direxion.

“We wanted to see how the single-stock ETFs would be received, and we thought some of the other single stocks might be more readily traded,” he said.

Direxion's Full Slate of Mag Seven ETFs

Because the single-stock ETFs make long or short bets and the price resets daily, share price volatility is an important factor for attracting active investors and day traders.

“Single-stock ETFs have exploded in popularity recently,” said etf.com Senior ETF Analyst Sumit Roy, who cited the success of the GraniteShares 2X Long NVDA Daily ETF (NVDL), which has grown to $3 billion.

Another example of appeal in the category is the Direxion Daily TSLA Bull 2X Shares ETF (TSLL) at $1 billion.

“These are numbers that a lot of people wouldn't have believed when single-stock ETFs launched less than two years ago,” Roy added.

The leverage on six Mag Seven single-stock ETFs that Direxion launched prior to the META versions were each changed from 1.5 times leverage to 2 times leverage in April to reach the maximum allowed leverage for single-stock ETFs.

Across Direxion’s ETF lineup, Egilinsky said three of the top 10 funds in terms of inflows this year are single-stock ETFs.

As trading vehicles, the levered and inverse ETFs can see wild moves in terms of inflows and outflows, Egilinsky said.

“With the market rallying we’ve seen some top inflows in our bear products,” he said.

Jeff Benjamin is the wealth management editor at etf.com, responsible for coverage related to the financial planning industry. This includes writing, hosting podcasts, webinars, video interviews and presenting at in-person events.

Jeff is a veteran journalist with more than 30 years’ experience covering the financial markets. He has won more than two dozen national and regional awards for his reporting. He most recently worked as a senior columnist at InvestmentNews where he wrote about investment products and strategies, as well as the broader financial planning industry. Prior to that, Jeff worked as an analyst at Cerulli Associates where he researched and wrote reports on the alternative investments industry. Jeff also worked as a money management reporter at Dow Jones Newswires, where he covered the mutual fund industry.

Based in North Carolina, Jeff is a former Marine and has a bachelor’s degree in journalism from Central Michigan University.