These funds are not intended as buy-and-hold investments and should be monitored daily. These types of funds are not for everyone, so be sure to understand the risks involved and how they work. [Leveraged ETFs Get a Bad Rap]
Also of note, Direxion is grounding its airline focused ETF. The Direxion Airline Shares Fund (NYSEArca: FLYX) will stop trading as of October 10, 2011.
“Direxion’s core business and success has been focused in the leveraged and inverse ETF, and other alternative fund space. With declining interest in a non-leveraged airline industry ETF, we feel it is in the best interest of the shareholders to close the fund and stick to the product for which we are best known,” Dan O’Neill, President and CIO of Direxion said in a recent press release.
Tisha Guerrero contributed to this article.