Leveraged and Inverse ETFs

In the ETF business, Direxion is best known for its turbocharged lineup of funds designed to provide 300% of the daily moves of various sectors and asset classes, on a daily basis.

ETF Trends editor Tom Lydon sits down with John Cadigan, National Sales Manager at Direxion, to discuss how traders, investors and advisors are using the ETFs.

Cadigan says Direxion is seeing more activity in the bear-oriented funds that rise when the market falls amid concern over policy making and the U.S. fiscal cliff, specifically in financials and small-caps.

He tells Lydon the firm has also experienced a big pickup in business on the commodity side.

“Our innovation is really driven by our client demand,” Cadigan said, so Direxion plans on launching more commodity funds. “We want to give people both sides of the trade. Investors and advisors are hedging more.”