Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

Direxion’s 2x ETFs Becoming 3x ETFs

Mon, Nov 28, 9:14 AM ET, by Michael Johnston

Direxion, one of the largest issuers of leveraged exchange-traded funds, will make significant changes to ten of its products next week. The Direxion ETFs currently offering 2x and -2x exposure to their underlying index will begin seeking to deliver daily results that correspond to 3x or -3x of the related benchmark. That change will obviously increase the volatility of these products, and will also have an impact on margin requirements for investors with positions in these funds.

The changes affect five pairs of products, including leveraged ETFs focusing on BRIC stocks, Indian equities, gold miners, natural gas firms, and retail companies:

Ticker Previous ETF Name New ETF Name
BRIL Daily BRIC Bull 2x Shares Daily BRIC Bull 3x Shares
BRIS Daily BRIC Bear 2x Shares Daily BRIC Bear 3x Shares
INDL Daily India Bull 2x Shares Daily India Bull 3x Shares
INDZ Daily India Bear 2x Shares Daily India Bear 3x Shares
NUGT Daily Gold Miners Bull 2x Shares Daily Gold Miners Bull 3x Shares
DUST Daily Gold Miners Bear 2x Shares Daily Gold Miners Bear 3x Shares
GASL Daily Natural Gas Related Bull 2x Shares Daily Natural Gas Related Bull 3x Shares
GASX Daily Natural Gas Related Bear 2x Shares Daily Natural Gas Related Bear 3x Shares
RETL Daily Retail Bull 2x Shares Daily Retail Bull 3x Shares
RETS Daily Retail Bear 2x Shares Daily Retail Bear 3x Shares

Effective December 1st these ETFs will deliver 3x or -3x daily leveraged returns, essentially increasing the volatility and risk of these funds by 50%. Also of note for investors with positions in these products are changes to margin requirements. In 2009 FINRA introduced new rules governing the margin requirements for leveraged ETFs; for long positions, the required margin is equal to the product of the target multiple times 25% (i.e., 75% of market value for 3x products).

Upon completion of this transition Direxion will offer more than 40 3x and -3x leveraged ETFs, including products linked to broad indexes such as the Russell 1000 and more targeted benchmarks focusing on specific international stock markets or domestic and global sectors. The Direxion ETF lineup also includes several leveraged bond ETFs and a handful of 1x inverse stock and bond funds [see The Ultimate Guide To Leveraged ETFs].

All of the Direxion ETFs impacted by the change implement daily resets of exposure, meaning that these products are designed to achieve their objectives over the course of a single trading day only. When held for periods longer or shorter than a single session, the path and volatility of the underlying index will impact the returns realized.

Disclosure: No positions at time of writing.


SDI Glossary: "ETFs" Definition
SDI Glossary: "NRA" Definition
This Article's Word Cloud:   BRIC   Bear   Bull   DUST   Daily   Direxion   ETFs   Gold   India   Miners   Name   Natural   Related   Retail   Shares   also   bond   change   changes   daily   deliver   exposure   focusing   funds   impact   including   index   investors   leveraged   longer   margin   markets   more   positions   products   required   requirements   returns   shorter   single   stock   target   than   that   their   these   underlying   volatility   will   with

| More

Egypt Index Getting Very Oversold
Fri, Mar 27, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the Egypt Index ETF (EGPT) entered into oversold territory, ...

EMC Achieves #86 Analyst Rank, Surpassing Allegion
Fri, Mar 27, 11:54 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

First Trust Dorsey Wright Focus 5 ETF Experiences Big Inflow
Fri, Mar 27, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: FV, FXH, FDN, FXG Exchange traded funds (ETFs) trade just ...

DIA, GS, UTX, TRV: Large Outflows Detected at ETF
Fri, Mar 27, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: DIA, GS, UTX, TRV Exchange traded funds (ETFs) trade just ...

JXI, DUK, SO, PPL: ETF Outflow Alert
Fri, Mar 27, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: JXI, DUK, SO, PPL Exchange traded funds (ETFs) trade just ...

ERX: ETF Outflow Alert
Fri, Mar 27, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: ERX Exchange traded funds (ETFs) trade just like stocks, but ...

IAT, USB, PNC, BBT: ETF Outflow Alert
Fri, Mar 27, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IAT, USB, PNC, BBT Exchange traded funds (ETFs) trade just ...

Why Union Pacific is a Top 25 Dividend Giant (UNP)
Fri, Mar 27, 10:14 AM ET, by ETF Channel

Union Pacific Corp (UNP) has been named as a Top 25 ''Dividend Giant'' by ETF ...

Nucor a Top Socially Responsible Dividend Stock With 3.2% Yield (NUE)
Fri, Mar 27, 10:14 AM ET, by ETF Channel

Nucor Corp. (NUE) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, ...

10.1% of REM Holdings Seeing Recent Insider Buys
Fri, Mar 27, 9:54 AM ET, by ETF Channel

A look at the weighted underlying holdings of the iShares Mortgage Real Estate Capped ETF ...

Significant Insider Buying Registered in Holdings of QABA
Fri, Mar 27, 9:54 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust NASDAQ ABA Community Bank ...

Google Achieves #5 Analyst Rank, Surpassing Thermo Fisher Scientific
Thu, Mar 26, 11:54 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

INDY Crosses Below Key Moving Average Level
Thu, Mar 26, 11:34 AM ET, by ETF Channel

In trading on Thursday, shares of the iShares India 50 ETF (INDY) crossed below their ...

XHB, RYL, OC, TPX: Large Inflows Detected at ETF
Thu, Mar 26, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: XHB, RYL, OC, TPX Exchange traded funds (ETFs) trade just ...

iShares S&P 500 Value (IVE) Shares Cross Below 200 DMA
Thu, Mar 26, 11:24 AM ET, by ETF Channel

In trading on Thursday, shares of the iShares S&P 500 Value ETF (IVE) crossed below ...

iShares S&P 100 ETF Experiences Big Outflow
Thu, Mar 26, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: OEF, IBM, GILD, PEP Exchange traded funds (ETFs) trade just ...

WisdomTree DEFA Fund (DWM) Shares Cross Below 200 DMA
Thu, Mar 26, 11:24 AM ET, by ETF Channel

In trading on Thursday, shares of the WisdomTree DEFA Fund ETF (DWM) crossed below their ...

iShares MSCI EMU (EZU) Shares Cross Below 200 DMA
Thu, Mar 26, 11:24 AM ET, by ETF Channel

In trading on Thursday, shares of the iShares MSCI EMU ETF (EZU) crossed below their ...

XLY, DIS, CMCSA, AMZN: Large Inflows Detected at ETF
Thu, Mar 26, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: XLY, DIS, CMCSA, AMZN Exchange traded funds (ETFs) trade just ...

EFAV: ETF Inflow Alert
Thu, Mar 26, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: EFAV Exchange traded funds (ETFs) trade just like stocks, but ...

iShares Russell 1000 ETF Experiences Big Inflow
Thu, Mar 26, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IWB, PG, BAC, C Exchange traded funds (ETFs) trade just ...

VHT, UNH, MCK, ANTM: Large Inflows Detected at ETF
Thu, Mar 26, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VHT, UNH, MCK, ANTM Exchange traded funds (ETFs) trade just ...

This ETF Holds Companies With Heavy Insider Buying - BIZD
Thu, Mar 26, 9:34 AM ET, by ETF Channel

A look at the weighted underlying holdings of the BDC Income ETF (BIZD) shows an ...

MMC Named A Top Socially Responsible Dividend Stock
Thu, Mar 26, 8:14 AM ET, by ETF Channel

Marsh & McLennan Companies Inc. (MMC) has been named a Top Socially Responsible Dividend Stock ...

Why WGL Holdings is a Top 25 SAFE Dividend Stock (WGL)
Thu, Mar 26, 8:14 AM ET, by ETF Channel

WGL Holdings, Inc. (WGL) has been named to the Dividend Channel ''S.A.F.E. ...

First Trust Senior Loan Fund Breaks Below 200-Day Moving Average - Notable for FTSL
Wed, Mar 25, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the First Trust Senior Loan Fund ETF (FTSL) crossed ...

USD Makes Notable Cross Below Critical Moving Average
Wed, Mar 25, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the ProShares Ultra Semiconductors ETF (USD) crossed below their ...

FNI Crosses Below Key Moving Average Level
Wed, Mar 25, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the First Trust ISE Chindia Index Fund ETF (FNI) ...

SLYV Crosses Below Key Moving Average Level
Wed, Mar 25, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the SPDR S&P 600 Small Cap Value ETF (SLYV) ...

IDU Crosses Below Key Moving Average Level
Wed, Mar 25, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares U.S. Utilities ETF (IDU) crossed below their ...

EPI Crosses Below Key Moving Average Level
Wed, Mar 25, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the WisdomTree India Earnings Fund ETF (EPI) crossed below ...

SCIN Makes Notable Cross Below Critical Moving Average
Wed, Mar 25, 12:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the EGShares India Small Cap ETF (SCIN) crossed below ...

SDY, PBCT, HCP, NNN: Large Outflows Detected at ETF
Wed, Mar 25, 11:44 AM ET, by ETF Channel

Symbols mentioned in this story: SDY, PBCT, HCP, NNN Exchange traded funds (ETFs) trade just ...

IJH, SLG, CHD, O: Large Outflows Detected at ETF
Wed, Mar 25, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: IJH, SLG, CHD, O Exchange traded funds (ETFs) trade just ...

IYH, JNJ, PFE, MRK: Large Inflows Detected at ETF
Wed, Mar 25, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: IYH, JNJ, PFE, MRK Exchange traded funds (ETFs) trade just ...

FBT, ICPT, PCYC, CLDX: Large Inflows Detected at ETF
Wed, Mar 25, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: FBT, ICPT, PCYC, CLDX Exchange traded funds (ETFs) trade just ...

IWR, KR, CI, LUV: Large Inflows Detected at ETF
Wed, Mar 25, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: IWR, KR, CI, LUV Exchange traded funds (ETFs) trade just ...

SMH, TSM, NXPI, ASML: Large Inflows Detected at ETF
Tue, Mar 24, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: SMH, TSM, NXPI, ASML Exchange traded funds (ETFs) trade just ...

VNM: Large Outflows Detected at ETF
Tue, Mar 24, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: VNM Exchange traded funds (ETFs) trade just like stocks, but ...

PXF Crosses Above Key Moving Average Level
Tue, Mar 24, 11:24 AM ET, by ETF Channel

In trading on Tuesday, shares of the PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio ETF ...

DGS: ETF Outflow Alert
Tue, Mar 24, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: DGS Exchange traded funds (ETFs) trade just like stocks, but ...

IVV, GE, JPM, VZ: Large Inflows Detected at ETF
Tue, Mar 24, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IVV, GE, JPM, VZ Exchange traded funds (ETFs) trade just ...

T Rowe Price Group a Top Ranked SAFE Dividend Stock With 2.5% Yield (TROW)
Tue, Mar 24, 9:24 AM ET, by ETF Channel

T Rowe Price Group Inc. (TROW) has been named to the Dividend Channel ''S.A.F.E. ...

SPDR S&P International Financial Sector (IPF) Shares Cross Above 200 DMA
Mon, Mar 23, 3:54 PM ET, by ETF Channel

In trading on Monday, shares of the SPDR S&P International Financial Sector ETF (IPF) crossed ...

H & R Block Achieves #57 Analyst Rank, Surpassing Snap-On
Mon, Mar 23, 12:24 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

ZSL Makes Notable Cross Below Critical Moving Average
Mon, Mar 23, 11:24 AM ET, by ETF Channel

In trading on Monday, shares of the ProShares UltraShort Silver ETF (ZSL) crossed below their ...

HYG: Large Outflows Detected at ETF
Mon, Mar 23, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: HYG Exchange traded funds (ETFs) trade just like stocks, but ...

IXUS Crosses Above Key Moving Average Level
Mon, Mar 23, 11:24 AM ET, by ETF Channel

In trading on Monday, shares of the iShares Core MSCI Total International Stock ETF (IXUS) ...

ECNS Makes Bullish Cross Above Critical Moving Average
Mon, Mar 23, 11:24 AM ET, by ETF Channel

In trading on Monday, shares of the iShares MSCI China Small-Cap ETF (ECNS) crossed above ...

EFV Makes Bullish Cross Above Critical Moving Average
Mon, Mar 23, 11:14 AM ET, by ETF Channel

In trading on Monday, shares of the iShares MSCI EAFE Value ETF (EFV) crossed above ...

Related videos | all videos »
  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

Direxion’s 2x ETFs Becoming 3x ETFs | Self Directed Investor | Copyright © 2008 - 2015, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of over 1000 individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.