Inverse Leveraged ETFs

Sector allocations include information technology 30.9%, consumer discretionary 17.5%, financials 15.1%, industrials 13.8%, materials 10.8%, consumer staples 5.4%, energy 3.1%, utilities 1.7%, telecom services 0.9% and health care 0.9%.

Leveraged ETFs try to magnify the daily movements of an underlying benchmark by using derivatives or futures contracts designed to generate a multiple of the return. Inverse ETFs also use derivatives in an attempt to achieve a negative, or inverse, multiplier to the direction of the underlying asset or index. [Inverse and Leveraged ETFs]

Due to daily rebalancing and compounding issues over time, the investments will not perfectly reflect the leveraged exposure to the underlying index over a long period.

Direxion launched the 3x bull versions last month, including the Direxion Daily Bull 3x Shares (NYSEArca: BRZU) and the Direxion Daily South Korea Bull 3x Shares (NYSEArca: KORU). [Direxion Launches Leveraged Brazil and South Korea ETFs]

For more information on new fund products, visit our new ETFs category.

Max Chen contributed to this article.