Direxion, a provider of tradeable and thematic ETFs, launched the first four of its single stock leveraged and inverse ETFs. The funds, which trade on the Nasdaq, allow sophisticated traders to obtain magnified or inverse exposure to the daily performance of the common stocks of Apple and Tesla.
“Our new single stock leveraged and inverse ETFs allow active traders to seek profit or hedge risk with conviction,” said Direxion Managing Director and Head of Product David Mazza, in a news release. “The ability to trade a Bull or Bear fund for Apple and Tesla is an excellent way for traders to respond tactically to potential company events and market sentiment.”
The ETFs are as follows:
| Fund | Symbol | Benchmark | Gross Expense
Ratio |
Net Expense Ratio* |
| Direxion Daily AAPL Bull 1.5X Shares | AAPU | Common Shares of Apple, Inc. | 0.99% | 0.97% |
| Direxion Daily AAPL Bear 1X Shares | AAPD | Common Shares of Apple, Inc. | 0.99% | 0.97% |
| Direxion Daily TSLA Bull 1.5X Shares | TSLL | Common Shares of Tesla, Inc. | 0.99% | 0.97% |
| Direxion Daily TSLA Bear 1X Shares | TSLS | Common Shares of Tesla, Inc. | 0.99% | 0.97% |
* The Advisor has contractually agreed to waive a portion or all of its management fee and/or reimburse the Fund for other expenses through September 1, 2023.
In an interview with VettaFi Mazza said, “this environment is one that’s ripe for short-term tactical trading opportunities. And we’re likely to be in an environment where, because of the Federal Reserve’s plans to increase interest rates, we see heightened volatility for some time, so there’s opportunities for traders to be more tactical with their portfolios.”
As products built for sophisticated investors, Direxion’s pairs of single stock leveraged ETFs are meant to be used for short-term trading purposes. Leveraged single stock ETFs should not be viewed as buy and hold investments, but rather trading tools for traders with a high-risk tolerance. In addition, unlike traditional ETFs, or even other levered and/or inverse ETFs, these ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification.
“Direxion is excited to help meet the robust market demand for single stock leveraged ETFs from investors seeking returns that are 150% long exposure or -100% of the returns of Apple or Tesla for a single day,” said Direxion Head of Sales and Distribution and Alternatives Edward Egilinsky. “This is the latest example of our firm’s continued commitment to launching advanced trading tools for the active trader community.”
All Direxion leveraged and inverse ETFs are intended only for investors with an in-depth understanding of the risks associated with seeking leveraged investment results, and who plan to actively monitor and manage their positions.
For more news, information, and strategy, visit the Leveraged & Inverse Channel.
