Direxion, a leading provider of leveraged and inverse exchange traded funds (ETFs), is changing the names, investment strategies and objectives of 10 funds.
As of December 1, ten ETFs in the leveraged Direxion line up will change its leverage to 300% or -300% from a previous 200% or -200%. According to a company press release, the objective of several funds with “bull” in it’s name currently seek 200% of the funds target index. As of December 1, this will shift to 300%.
Likewise, those with “bear” in its name seeks -200% of the targeted index, and will change to -300% as of December 1.
This change comes at a time when leveraged ETFs have been under fire as to whether they created the latest market volatility. [Do Leveraged ETFs Really Exacerbate Volatility?]