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.”
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