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

SPXU Crowded With Sellers
Thu, Sep 18, 4:34 PM ET, by ETF Channel

In trading on Thursday, shares of the Proshares UltraPro Short S&P500 ETF (SPXU) entered into ...

Shares of CCX Now Oversold
Thu, Sep 18, 4:34 PM ET, by ETF Channel

In trading on Thursday, shares of the WisdomTree Commodity Currency Strategy Fund ETF (CCX) entered ...

SEF Crowded With Sellers
Thu, Sep 18, 4:34 PM ET, by ETF Channel

In trading on Thursday, shares of the Proshares Short Financials ETF (SEF) entered into oversold ...

H & R Block Achieves #6 Analyst Rank, Surpassing Quanta Services
Thu, Sep 18, 12:14 PM ET, by ETF Channel

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

VCIT Crosses Critical Technical Indicator
Thu, Sep 18, 11:14 AM ET, by ETF Channel

In trading on Thursday, shares of the Vanguard Intermediate-Term Corporate Bond ETF (VCIT) entered into ...

Shares of ITR Now Oversold
Thu, Sep 18, 11:14 AM ET, by ETF Channel

In trading on Thursday, shares of the SPDR Barclays Intermediate Term Corporate Bond ETF (ITR) ...

Industrial Select Sector SPDR Fund Experiences Big Outflow
Thu, Sep 18, 11:14 AM ET, by ETF Channel

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

SDS Crosses Critical Technical Indicator
Thu, Sep 18, 11:14 AM ET, by ETF Channel

In trading on Thursday, shares of the Proshares UltraShort S&P500 ETF (SDS) entered into oversold ...

Gold Miners Getting Very Oversold
Thu, Sep 18, 11:14 AM ET, by ETF Channel

In trading on Thursday, shares of the Gold Miners ETF (GDX) entered into oversold territory, ...

SKF Crowded With Sellers
Thu, Sep 18, 10:54 AM ET, by ETF Channel

In trading on Thursday, shares of the Proshares UltraShort Financials ETF (SKF) entered into oversold ...

Coal Getting Very Oversold
Thu, Sep 18, 10:54 AM ET, by ETF Channel

In trading on Thursday, shares of the Coal ETF (KOL) entered into oversold territory, changing ...

IYT, FDX, UNP, KEX: ETF Inflow Alert
Thu, Sep 18, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: IYT, FDX, UNP, KEX Exchange traded funds (ETFs) trade just ...

VSS, BTE, GIL, OTEX: ETF Inflow Alert
Thu, Sep 18, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: VSS, BTE, GIL, OTEX Exchange traded funds (ETFs) trade just ...

Daily Small Cap Bull 3x Shares Experiences Big Inflow
Thu, Sep 18, 10:54 AM ET, by ETF Channel

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

SDOW Crowded With Sellers
Thu, Sep 18, 10:54 AM ET, by ETF Channel

In trading on Thursday, shares of the Proshares UltraPro Short Dow30 ETF (SDOW) entered into ...

SPDR S&P Oil & Gas Exploration & Production ETF -- Insider Buying Index Registering 13.1%
Thu, Sep 18, 10:14 AM ET, by ETF Channel

A look at the weighted underlying holdings of the SPDR S&P Oil & Gas Exploration ...

10.5% of XES Holdings Seeing Recent Insider Buys
Thu, Sep 18, 9:54 AM ET, by ETF Channel

A look at the weighted underlying holdings of the SPDR S&P Oil & Gas Equipment ...

11.9% of RZV Holdings Seeing Recent Insider Buys
Thu, Sep 18, 9:54 AM ET, by ETF Channel

A look at the weighted underlying holdings of the Guggenheim S&P SmallCap 600 Pure Value ...

MMC Named A Top Socially Responsible Dividend Stock
Thu, Sep 18, 9:14 AM ET, by ETF Channel

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

EMHY Crosses Below Key Moving Average Level
Wed, Sep 17, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares Emerging Markets High Yield Bond ETF (EMHY) ...

BLDRS Europe Select ADR Index Fund (ADRU) Shares Cross Above 200 DMA
Wed, Sep 17, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the BLDRS Europe Select ADR Index Fund ETF (ADRU) ...

Vanguard Intermediate-Term Bond Breaks Below 200-Day Moving Average - Notable for BIV
Wed, Sep 17, 3:54 PM ET, by ETF Channel

In trading on Wednesday, shares of the Vanguard Intermediate-Term Bond ETF (BIV) crossed below their ...

EPP Crosses Below Key Moving Average Level
Wed, Sep 17, 3:54 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares MSCI Pacific ex Japan ETF (EPP) crossed ...

SPXS Crowded With Sellers
Wed, Sep 17, 3:54 PM ET, by ETF Channel

In trading on Wednesday, shares of the Daily S&P 500 Bear 3x Shares ETF (SPXS) ...

Shares of ENZL Now Oversold
Wed, Sep 17, 3:54 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares MSCI New Zealand Capped ETF (ENZL) entered ...

STIP Crosses Critical Technical Indicator
Wed, Sep 17, 3:54 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares 0-5 Year TIPS Bond ETF (STIP) entered ...

QEP Resources Takes Over #88 Spot From Cameron International
Wed, Sep 17, 12:14 PM ET, by ETF Channel

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

iShares Cohen & Steers REIT ETF Experiences Big Outflow
Wed, Sep 17, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: ICF, SPG, GGP, MAC Exchange traded funds (ETFs) trade just ...

UUP: Large Outflows Detected at ETF
Wed, Sep 17, 11:24 AM ET, by ETF Channel

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

ESR: Large Inflows Detected at ETF
Wed, Sep 17, 11:14 AM ET, by ETF Channel

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

VBR, FL, TRN, RAD: Large Inflows Detected at ETF
Wed, Sep 17, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VBR, FL, TRN, RAD Exchange traded funds (ETFs) trade just ...

VOT, VRTX, HCN, MCO: ETF Inflow Alert
Wed, Sep 17, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VOT, VRTX, HCN, MCO Exchange traded funds (ETFs) trade just ...

WisdomTree Emerging Markets Equity Income Fund Experiences Big Outflow
Wed, Sep 17, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: DEM, KT, LUKOY, SKM Exchange traded funds (ETFs) trade just ...

DFE: Large Outflows Detected at ETF
Wed, Sep 17, 11:14 AM ET, by ETF Channel

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

XES, DRC, EXH, HLX: ETF Outflow Alert
Wed, Sep 17, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: XES, DRC, EXH, HLX Exchange traded funds (ETFs) trade just ...

GWL, RY.CA, TD.CA, BNS.CA: Large Outflows Detected at ETF
Wed, Sep 17, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: GWL, RY.CA, TD.CA, BNS.CA Exchange traded funds (ETFs) trade just ...

NGE Crowded With Sellers
Wed, Sep 17, 10:54 AM ET, by ETF Channel

In trading on Wednesday, shares of the MSCI Nigeria ETF (NGE) entered into oversold territory, ...

ITB Makes Bullish Cross Above Critical Moving Average
Wed, Sep 17, 10:54 AM ET, by ETF Channel

In trading on Wednesday, shares of the iShares U.S. Home Construction ETF (ITB) crossed above ...

Significant Insider Buying Registered in Holdings of AIRR
Wed, Sep 17, 9:54 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust RBA American Industrial Renaissance ...

This ETF Holds Companies With Heavy Insider Buying - BIZD
Wed, Sep 17, 9:54 AM ET, by ETF Channel

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

Time Warner Moves Up In Analyst Rankings, Passing Boston Properties
Tue, Sep 16, 12:14 PM ET, by ETF Channel

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

iShares Asia Developed Real Estate (IFAS) Enters Oversold Territory
Tue, Sep 16, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the iShares Asia Developed Real Estate ETF (IFAS) entered ...

DIM Crowded With Sellers
Tue, Sep 16, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the WisdomTree International MidCap Dividend Fund ETF (DIM) entered ...

iShares MSCI ACWI ex U.S. (ACWX) Shares Cross Below 200 DMA
Tue, Sep 16, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the iShares MSCI ACWI ex U.S. ETF (ACWX) crossed ...

IXUS Crosses Below Key Moving Average Level
Tue, Sep 16, 11:14 AM ET, by ETF Channel

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

First Trust ISE Global Platinum Index Fund (PLTM) Enters Oversold Territory
Tue, Sep 16, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the First Trust ISE Global Platinum Index Fund ETF ...

WPS Crosses Critical Technical Indicator
Tue, Sep 16, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the iShares International Developed Property ETF (WPS) entered into ...

CU Crosses Below Key Moving Average Level
Tue, Sep 16, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the First Trust ISE Global Copper Index Fund ETF ...

13.1% of FYT Holdings Seeing Recent Insider Buys
Tue, Sep 16, 9:54 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust Small Cap Value AlphaDEX ...

17.5% of FDM Holdings Seeing Recent Insider Buys
Tue, Sep 16, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust Dow Jones Select MicroCap ...

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 - 2014, 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.