Guide To ETF Providers: Direxion
AAA
  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

Guide To ETF Providers: Direxion

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

  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
RELATED TERMS
  1. Factor Investing

    An investment strategy in which securities are chosen based on ...
  2. Reverse Gold ETF

    Exchange traded funds that are designed to trade in a direction ...
  3. Investment Fund

    A supply of capital belonging to numerous investors that is used ...
  4. Short Gold ETF

    An exchange traded fund that seeks to profit from negative changes ...
  5. Shariah-Compliant Funds

    An investment fund which meets all of the requirements of Shariah ...
  6. Total Annual Fund Operating Expenses

    For a mutual fund or other type of fund management structure, ...
  1. What ETFs should I buy to track the utilities sector?

    Selecting utilities sector company stocks can be a challenge for investors, but utilizing an ETF that tracks a utilities ...
  2. What are the most common ETFs that track the forest products sector?

    Explore the most common exchange-traded funds that track the forest products sector. Review the performance, expense ratios ...
  3. What are the most common ETFs that track the oil & gas drilling sector?

    Learn about three of the most common ETFs that track the oil and gas drilling sector: the XOP, the IEO and the PXE. Explore ...
  4. What are the regulations involved in releasing an ETF on the open market?

    Learn how an exchange traded fund comes to life, and find out about regulations surrounding ETF release from the Investment ...

You May Also Like

Related Tutorials
  1. Mutual Funds & ETFs

    Top ETFs And What They Track: A Tutorial

  2. Retirement

    Analyzing The Best Retirement Plans And Investment Options

  3. Mutual Funds & ETFs

    Complete Guide To Investment Companies, Funds And REITs

  4. Trading Systems & Software

    How To Analyze ETFs With Bloomberg

  5. Mutual Funds & ETFs

    Exchange-Traded Funds (ETFs)

Trading Center