ETF Trends
ETF Trends

Direxion has just added more leverage to their fast-growing and diverse lineup, this time with a pair of exchange traded funds (ETFs) that target the real estate market.

The new ETFs are deliver triple leverage, or 300% of the daily performance (plus or minus), of the MSCI U.S. REIT Index. The latest additions mean there’s a total of 22 funds in the DirexionShares family.

The new funds are:

  • Direxion Daily Real Estate Bull 3x Shares (DRN)
  • Direxion Daily Real Estate Bear 3x Shares (DRV)

Both funds will charge an expense ratio of 0.95%. They may seem similar to the newly launched MacroShares funds, but there are at least two big differences:

1. The MacroShares funds are trusts – investor money is put into Treasury securities and other cash holdings; assets are shifted to mirror changes in the S&P/Case-Shiller Composite 10 Home Price Index.

2. The Direxion funds seek to provide leverage on an index of REITs; they are not tracking home prices.

For more stories about new ETFs, visit our New ETF category.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.