Direxion Investments President Brian Jacobs and John Vaughan, senior vice president and portfolio strategist, joined ETF Trends Publisher Tom Lydon at the ETF.com Inside ETFs conference in Hollywood, Fla. to discuss how advisors can properly use leveraged ETFs to bolster portfolio returns.
“We’ve been a leader in three times levered ETFs. We’ve since extended out that product line. Essentially, it’s in our DNA, our ability to help advisors use leverage in a number of different ways,” said Jacobs.
Jacobs highlighted Direxion’s new lightly levered ETFs, which debuted at the start of this year. Those ETFs are the Direxion Daily S&P 500 Bull 1.25 Shares (NYSEArca: LLSP), Direxion Daily Small Cap Bull 1.25X Shares (NYSEArca: LLSC), Daily FTSE Developed Markets Bull 1.25X Shares (NYSEArca: LLDM) and the Direxion Daily FTSE Emerging Markets Bull 1.25X Shares (NYSEArca: LLEM).
“Because there’s so much less compounding of an issue, you get a much longer time frame to get it right. They represent a nice tactical tool,” said Vaughn of the lightly leveraged ETFs.
Watch the video below to see the full interview.
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