Here’s a breakdown of the five new funds, their symbols, underlying benchmarks, and expense ratios:
|Fund||Symbol||CUSIP||Benchmark||Gross Expense Ratio||Net Expense Ratio*|
|Direxion Daily Aerospace & Defense Bull 3X Shares||DFEN||25460E661||Dow Jones U.S. Select Aerospace & Defense Index||1.09%||0.95%|
|Direxion Daily Industrials Bull 3X Shares||DUSL||25460E737||Industrials Select Sector Index||1.09%||0.95%|
|Direxion Daily MSCI Mexico Bull 3X Shares||MEXX||25460E752||MSCI Mexico IMI 25/50 Index||1.10%||0.95%|
|Direxion Daily Transportation Bull 3X Shares||TPOR||25460E679||Dow Jones Transportation AverageTM||1.09%||0.95%|
|Direxion Daily Utilities Bull 3X Shares||UTSL||25460E711||Utilities Select Sector Index||1.02%||0.95%|
Direxion commented on the new fund launches via press release:
“With the new administration in Washington comes new policies that have the potential to affect the capital markets landscape,” said Sylvia Jablonski, Managing Director at Direxion. “We aim to provide traders with ways to capitalize on opportunities created by those new policies.”
As always, it’s worth noting that leveraged ETFs are aimed specifically at active traders with high risk tolerance that are able to enter and exit positions relatively quickly. The triple leveraged nature of these new products means that they move at three times the underlying indexes each day.
Once these new funds get some trading history under their belts, we’ll be sure to cover them in more detail and issue SMART Grades for them. For now, you can head to Direxion’s website for more information.