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

    Get Levered With Leveraged ETFs

    Leveraged ETFs can be enticing, but traders need to know the downside of these popular products.
  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

    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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.
Frequently Asked Questions
  1. What is a reasonable amount of debt?

    It really depends on numerous factors - what stage of life you are at, your spending and saving habits, the stability of ...
  2. How are IRA withdrawals taxed?

    Learn how IRA withdrawals are taxed at retirement age and for qualified withdrawals. Consider the different tax consequences ...
  3. How does CareCredit for pets work?

    Understand how using a CareCredit credit card aids pet parents in the payment of potentially high veterinary care costs.
  4. Do 401k contributions reduce AGI and/or MAGI?

    Discover how contributing to a 401(k) plan can reduce your AGI and/or MAGI. Also learn by how much and how this differs from ...
Trading Center