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   adsbygoogle   also   bond   change   changes   daily   deliver   exposure   focusing   funds   impact   including   index   investors   leveraged   longer   margin   markets   more   positions   products   requirements   returns   shorter   single   stock   target   than   that   their   these   underlying   volatility   will   with

| More

See How United Technologies Ranks Among Analysts' Top Dow 30 Picks
Tue, Sep 27, 12:34 PM ET, by ETF Channel

A study of analyst recommendations at the major brokerages shows that United Technologies Corp (UTX) ...

SMH, TSM, TXN, AMAT: ETF Outflow Alert
Tue, Sep 27, 10:54 AM ET, by ETF Channel

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

iShares MSCI Philippines (EPHE) Shares Cross Below 200 DMA
Tue, Sep 27, 10:54 AM ET, by ETF Channel

In trading on Tuesday, shares of the iShares MSCI Philippines ETF (EPHE) crossed below their ...

SPY, WFC, VZ, CSCO: ETF Outflow Alert
Tue, Sep 27, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: SPY, WFC, VZ, CSCO Exchange traded funds (ETFs) trade just ...

XLV, AMGN, MDT, GILD: ETF Inflow Alert
Tue, Sep 27, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XLV, AMGN, MDT, GILD Exchange traded funds (ETFs) trade just ...

IWV's Underlying Holdings Imply 10% Gain Potential
Tue, Sep 27, 9:54 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

The Math Shows VLU Can Go To $90
Tue, Sep 27, 9:54 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

FXD's Underlying Holdings Imply 11% Gain Potential
Tue, Sep 27, 9:44 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

SPXV's Underlying Holdings Could Mean 10% Gain Potential
Tue, Sep 27, 9:44 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Sum Up The Pieces: XITK Could Be Worth $69
Tue, Sep 27, 9:44 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Implied RSP Analyst Target Price: $91
Tue, Sep 27, 9:44 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Douglas Emmett Reaches Analyst Target Price
Tue, Sep 27, 9:34 AM ET, by ETF Channel

In recent trading, shares of Douglas Emmett Inc (DEI) have crossed above the average analyst ...

TC PipeLines Reaches Analyst Target Price
Tue, Sep 27, 9:34 AM ET, by ETF Channel

In recent trading, shares of TC PipeLines, LP (TCP) have crossed above the average analyst ...

Implied XSD Analyst Target Price: $57
Tue, Sep 27, 9:34 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

O Crosses Above Average Analyst Target
Tue, Sep 27, 9:34 AM ET, by ETF Channel

In recent trading, shares of Realty Income Corp (O) have crossed above the average analyst ...

Implied SPHQ Analyst Target Price: $27
Tue, Sep 27, 9:24 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

The CLMT Paradox: Analysts Bearish But Forecast 20.72% Gains
Tue, Sep 27, 9:24 AM ET, by ETF Channel

Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a ...

DE Named A Top Socially Responsible Dividend Stock
Tue, Sep 27, 8:14 AM ET, by ETF Channel

Deere & Co. (DE) has been named a Top Socially Responsible Dividend Stock by Dividend ...

NUE Named Top 25 SAFE Dividend Stock Increasing Payments For Decades
Tue, Sep 27, 8:14 AM ET, by ETF Channel

Nucor Corp. (NUE) has been named to the Dividend Channel ''S.A.F.E. ...

IWN, IDA, POR, HR: Large Inflows Detected at ETF
Mon, Sep 26, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: IWN, IDA, POR, HR Exchange traded funds (ETFs) trade just ...

FLRN: Large Inflows Detected at ETF
Mon, Sep 26, 11:14 AM ET, by ETF Channel

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

VDE, PAGP, EEQ, TEP: ETF Outflow Alert
Mon, Sep 26, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VDE, PAGP, EEQ, TEP Exchange traded funds (ETFs) trade just ...

MTUM, V, CHTR, NOC: Large Inflows Detected at ETF
Mon, Sep 26, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: MTUM, V, CHTR, NOC Exchange traded funds (ETFs) trade just ...

SPDR Barclays 1-3 Month T-Bill ETF Experiences Big Inflow
Mon, Sep 26, 11:14 AM ET, by ETF Channel

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

iShares MSCI Japan ETF Experiences Big Outflow
Mon, Sep 26, 11:14 AM ET, by ETF Channel

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

FPX, SHPG, PYPL, HPE: Large Outflows Detected at ETF
Mon, Sep 26, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: FPX, SHPG, PYPL, HPE Exchange traded funds (ETFs) trade just ...

MCC Crosses Above Average Analyst Target
Mon, Sep 26, 10:14 AM ET, by ETF Channel

In recent trading, shares of Medley Capital Corp (MCC) have crossed above the average analyst ...

Cabelas Reaches Analyst Target Price
Mon, Sep 26, 10:14 AM ET, by ETF Channel

In recent trading, shares of Cabelas Inc (CAB) have crossed above the average analyst 12-month ...

PTCT Crosses Above Average Analyst Target
Mon, Sep 26, 10:14 AM ET, by ETF Channel

In recent trading, shares of PTC Therapeutics Inc (PTCT) have crossed above the average analyst ...

The Math Shows PBW Can Go To $5
Mon, Sep 26, 10:14 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

We Did The Math SHE Can Go To $71
Mon, Sep 26, 9:54 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

PXE's Holdings Imply 13% Gain Potential
Mon, Sep 26, 9:54 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

EQWS's Underlying Holdings Could Mean 13% Gain Potential
Mon, Sep 26, 9:54 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Add Up The Parts: IYC Could Be Worth $166
Mon, Sep 26, 9:54 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

PXJ's Underlying Holdings Imply 18% Gain Potential
Mon, Sep 26, 9:44 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

OIH Makes Notable Cross Below Critical Moving Average
Fri, Sep 23, 3:54 PM ET, by ETF Channel

In trading on Friday, shares of the Oil Services ETF (OIH) crossed below their 200 ...

Comcast Takes Over #20 Spot From Raytheon
Fri, Sep 23, 11:54 AM ET, by ETF Channel

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

Vanguard Mid-Cap Growth ETF Experiences Big Outflow
Fri, Sep 23, 11:14 AM ET, by ETF Channel

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

XLI, HON, UNP, UTX: ETF Outflow Alert
Fri, Sep 23, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: XLI, HON, UNP, UTX Exchange traded funds (ETFs) trade just ...

SPDR S&P Global Natural Resources ETF Experiences Big Outflow
Fri, Sep 23, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: GNR, POT, ADM, WY Exchange traded funds (ETFs) trade just ...

VUG, AAPL, GOOG, HD: ETF Outflow Alert
Fri, Sep 23, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: VUG, AAPL, GOOG, HD Exchange traded funds (ETFs) trade just ...

IWD, JPM, PFE, MRK: ETF Inflow Alert
Fri, Sep 23, 10:54 AM ET, by ETF Channel

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

EMB: ETF Inflow Alert
Fri, Sep 23, 10:54 AM ET, by ETF Channel

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

SHY: ETF Inflow Alert
Fri, Sep 23, 10:54 AM ET, by ETF Channel

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

IYR, SPG, AMT, PSA: Large Inflows Detected at ETF
Fri, Sep 23, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: IYR, SPG, AMT, PSA Exchange traded funds (ETFs) trade just ...

DIA, GS, UNH, BA: ETF Inflow Alert
Fri, Sep 23, 10:54 AM ET, by ETF Channel

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

11.5% of EXI Holdings Seeing Recent Insider Buys
Fri, Sep 23, 10:24 AM ET, by ETF Channel

A look at the weighted underlying holdings of the iShares Global Industrials ETF (EXI) shows ...

KEYW Holding Reaches Analyst Target Price
Fri, Sep 23, 10:14 AM ET, by ETF Channel

In recent trading, shares of KEYW Holding Corp (KEYW) have crossed above the average analyst ...

CMC Crosses Above Average Analyst Target
Fri, Sep 23, 10:14 AM ET, by ETF Channel

In recent trading, shares of Commercial Metals Co. (CMC) have crossed above the average analyst ...

BEL Crosses Above Average Analyst Target
Fri, Sep 23, 10:14 AM ET, by ETF Channel

In recent trading, shares of Belmond Ltd (BEL) have crossed above the average analyst 12-month ...

  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 - 2016, 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 serious 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.