Guide To ETF Providers: Direxion
  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. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  2. Inverse ETF

    An exchange-traded fund (ETF) that is constructed by using various ...
  3. ETF Of ETFs

    An exchange-traded fund (ETF) that tracks other ETFs rather than ...
  4. Index ETF

    Exchange-traded funds that follow a specific benchmark index ...
  5. Leveraged ETF

    An exchange-traded fund (ETF) that uses financial derivatives ...
  6. Double Gold ETF

    An exchange traded fund that tracks the value of gold and responds ...
RELATED FAQS
  1. Are there leveraged ETFs that track the financial services sector?

    Discover some of the leading companies offering leveraged ETFs today and learn specifically what leveraged ETFs are available ... Read Answer >>
  2. Are there leveraged ETFs that follow the retail sector?

    Read about leveraged exchange-traded funds (ETFs) that track the retail sector, and why using leveraged ETFs can be a boom-bust ... Read Answer >>
  3. Which leveraged ETFs can I buy to invest in the real estate sector?

    Explore some of the leveraged exchange-traded funds, or ETFs, available for investors interested in leveraged exposure to ... Read Answer >>
  4. Are there leveraged ETFs that track the banking sector?

    Learn about some of the leveraged exchange-traded funds (ETFs) that investors can use to track the banking industry within ... Read Answer >>
  5. Do ETFs pay capital gains?

    Learn about exchange-traded funds (ETFs), which can generate capital gains for their shareholders due to occasional and substantial ... Read Answer >>
  6. How do leveraged ETFs compound volatility? (SPXL)

    Learn about the mechanics behind positive and negative compounding in leveraged ETFs and discover why negative compounding ... Read Answer >>
Hot Definitions
  1. Reverse Mortgage

    A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage ...
  2. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  3. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  4. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  5. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  6. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
Trading Center