Direxion, the exchange traded fund provider known for its leveraged and inverse products, will reportedly increase its presence in the non-leveraged fund space, launching new strategy-based ETFs.
In December, Direxion will begin launching the Direxion Large Cap Insider Sentiment Shares ETF and the Direxion All Cap Insider Sentiment Shares ETF, among others, reports Jessica Toonkel for Reuters. [Direxion Prepares ‘Quant-Weighted’ ETFs]
The funds will hold long positions that insider executives are buying and short stocks that inside exeutives are selling.
In January, the fund provider plans to roll out the Direxion S&P 1500 Volatility Response Shares ETF, the S&P 500 Volatility Response Shares ETF and the Direxion S&P 500 Volatility Response Shares, which will utilize “smart-” or “intelligent-“beta strategies to help diminish volatility within the funds’ performances, according to the Reuters article.
The U.S. Securities and Exchange Commission is looking into whether leveraged ETFs had any hand in the recent bout of market volatility. At a congressional hearing, BlackRock (NYSE: BLK) insisted regulators should adopt a new fund classification system, which would label leveraged products as exchange traded instruments (EFIs). [What’s in an ETF Name?]
Direxion is the second largest U.S. provider of leveraged ETFs after ProShares.
Direxion will not be giving up on its core business in leveraged and inverse products. The company plans to increase leverage in several of its 200% daily products. [Direxion Boosting Leverage in Several ETFs]
“We are very committed to the active audience and will roll out more leveraged ETFs in coming months,” Andy O’Rourke, director of marketing at Direxion, said.
For more information on leveraged funds, visit our leveraged ETFs category.
Max Chen contributed to this article.