1. Guide To ETF Providers: Introduction
  2. Guide To ETF Providers: Direxion
  3. Guide To ETF Providers: EG Shares
  4. Guide To ETF Providers: ETF Securities
  5. Guide To ETF Providers: Guggenheim
  6. Guide To ETF Providers: IndexIQ
  7. Guide To ETF Providers: Invesco PowerShares
  8. Guide To ETF Providers: iShares
  9. Guide To ETF Providers: ProShares
  10. Guide To ETF Providers: State Street Global Advisors
  11. Guide To ETF Providers: Van Eck
  12. Guide To ETF Providers: Vanguard
  13. Guide To ETF Providers: WisdomTree
  14. Guide To ETF Providers: Conclusion

Direxion offers 44 U.S. listed ETFs distributed by Rafferty Capital Markets, LLC. Direxion specializes in leveraged ETFs - funds that use financial derivatives and debt to amplify the returns of an underlying index. Founded in 1997, Direxion in 2008 became the first ETF provider to offer three times leveraged ("triple-leveraged") ETF products that seek returns that are 300% (or -300% for Bear Funds) of the return of their benchmark index for a single day. Triple-leveraged funds are identified with a "3X" in the fund name, such as "Direxion Financial Bull 3X Shares." Today, Direxion's quivers of leveraged ETFs offer exposure to a variety of markets, from emerging markets to specific sectors indexes and Treasuries. Leveraged ETFs are typically used by active traders seeking a short-term trading strategy.

Direxion also specializes in inverse ETFs - funds that are constructed by using a variety of derivatives with the intention of profiting from a decline in the value of the underlying benchmark. Because this is similar to holding various short positions, inverse ETFs are also called "short ETFs" and "Bear ETFs." Direxion's funds that seek to profit from declines are identified with "Bear" in the fund name; for example, "Direxion Small Cap Bear 3X Shares 2013 Russell 2000" (a fund which happens to be triple-leveraged as well as inverse).

Headquartered in Boston, Massachusetts, Direxion ETFs have expense ratios ranging from 0.35 to 0.95%, with an average of 0.89%.

Direxion\'s top five largest funds by AUM.
Figure 1: Direxion\'s top five largest funds by AUM. Information current as of Feb. 8, 2013.


Guide To ETF Providers: EG Shares

Related Articles
  1. Investing

    (TZA) Direxion Daily Small Cap Bear 3X ETF: Who Is Invested?

    Learn about the Direxion Small-Cap Bear 3X ETF and why it is only suitable for sophisticated investors, speculators and day traders.
  2. Investing

    ERX: Direxion Daily Energy Bull 3X ETF

    Learn more about one of Direxion Fund's high-risk, high-reward energy plays: the Direxion Shares Funds Trust 3X exchange-traded fund.
  3. Investing

    TZA: Direxion Small Cap Bear 3X ETF

    Find out more about the Direxion Daily Small Cap Bear 3X ETF, the characteristics of TZA and the suitability of the Direxion Daily Small Cap Bear 3X ETF.
  4. Investing

    TNA vs. TZA: Comparing Leveraged U.S. Small-Cap Equity ETFs

    Compare the differences and similarities between the Direxion Daily Small Cap Bear 3X ETF and the Direxion Daily Small Cap Bull 3X ETF.
  5. Investing

    3 Popular Leveraged Financial ETFs in 2016 (UWTI, DWTI)

    Discover how leveraged ETFs work and the risks that come with investing in them. Learn about the three largest leveraged ETFs in financial services.
  6. Investing

    Are Triple Leveraged ETFs a Good Idea?

    Investors who are over the leverage game should consider ETFs as a way to maximize returns and increase exposure.
  7. Investing

    The Joys And Pains Of 3X Returns

    Investors who are over the leverage game should consider ETFs as a way to maximize returns and increase exposure.
  8. Investing

    Are Triple Leveraged ETFs a Good Idea?

    Investors who are over the leverage game should consider ETFs as a way to maximize returns and increase exposure.
  9. Investing

    Is It A Good Idea To Invest In Triple Leveraged ETF?

    Investors who are over the leverage game should consider ETFs as a way to maximize returns and increase exposure.
  10. Investing

    FAS: Direxion Daily Financial Bull 3X ETF

    Obtain a thorough review and analysis of the Direxion Daily Financial Bull 3X fund, a leveraged ETF that tracks the performance of the financial sector.
Frequently Asked Questions
  1. Depreciation Can Shield Taxes, Bolster Cash Flow

    Depreciation can be used as a tax-deductible expense to reduce tax costs, bolstering cash flow
  2. What schools did Warren Buffett attend on his way to getting his science and economics degrees?

    Learn how Warren Buffett became so successful through his attendance at multiple prestigious schools and his real-world experiences.
  3. How many attempts at each CFA exam is a candidate permitted?

    The CFA Institute allows an individual an unlimited amount of attempts at each examination.Although you can attempt the examination ...
  4. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ...
Trading Center