August 07, 2009 at 1:00 am by Tom Lydon
Direxion has filed with the Securities and Exchange Commission (SEC) to launch the market’s next 130/30 strategy exchange traded fund (ETF).
The 130/30 strategy has mostly been employed by hedge funds. In such a strategy, the funds hold 130% long exposure to individual securities that are believed to outperform and 30% short exposure to securities believed to fall, Don Dion for The Street reports. The leverage works in both directions.
Last month, ProShares launched the ProShares Credit Suisse 130/30 ETF (CSM). It’s still new, but Dion notes that the average volume is “not anemic.”
For more stories about New ETFs, visit our new ETF category.
For more stories about long-short ETFs, visit our long-short category.
Tags: 130/30, CSM, ETF 101, Long-Short ETFs, New ETFs
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