Direxion Goes Non-Leveraged with New ETFs | ETF Trends

Direxion has until now been known for its leveraged and inverse exchange traded funds (ETFs) particularly those of the triple-leveraged variety. But the provider may soon be branching out into some interesting straight plays on the market.

New funds Direxion has in the works include plays on both the airline and auto industries. Direxion Auto Shares will track the Global Auto & Auto Suppliers Index, and the Direxion Airline Shares will track the Indus Global Airlines & Airline Suppliers Index. Each ETF will charge 0.35%, according to the Securities and Exchange Commission filing.

The auto ETF would be a first for the ETF industry, while Claymore has the Claymore/NYSE Arca Airline (NYSEArca: FAA). There is also some airline exposure in iShares Dow Jones Transportation Average (NYSEArca: IYT). [Iceland Volcano Puts Airline ETF on Uncertain Ground.]

But that’s not all Direxion has in the works these days. The provider is planning to launch a total of 36 funds, including 17 pairs of triple leveraged bull-bear funds focused primarily on emerging markets, commodities and energy. Some of the bull-bear pair funds currently in registration with the SEC include plays on Malaysia, Indonesia, Taiwan, natural gas, water, wind energy, agribusiness and infrastructure. [The Case for Emerging Market Bond ETFs.]

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    The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.