Direxion is reducing the fees for its leveraged and inverse mutual funds, according to a report Wednesday.

“The firm is removing the 0.25% shareholder servicing fee and dropping its operating services fee to 0.35%, from 0.65%, on its line of 11 leveraged and inverse mutual funds, according to a regulatory filing dated Aug. 23,” Ignites.com reports. “As a result, total annual operating expenses will drop to 1.35%, from 1.90%. The fee cuts go into effect September 1.”

The move doesn’t affect Direxion’s lineup of leveraged and inverse ETFs. Most of the firm’s ETFs provide 300% leverage on both the long and short sides, on a daily basis. The products are designed as short-term vehicles. The company’s largest ETFs include Direxion Daily Gold Miners Bull 3X Shares (NYSEArca: NUGT) and Direxion Daily Financial Bear 3X Shares (NYSEArca: FAZ), which hold assets of $676 million and $559 million, respectively, according to Morningstar.

ProFunds also oversees a family of leveraged and inverse mutual funds. Additionally, it manages the ProShares ETF stable.

Direxion told Ignites the fee cuts underscore the firm’s commitment to the leveraged and inverse space. The firm’s leveraged and inverse ETFs hold more than $6.5 billion, while its traditional mutual funds that offer inverse and leveraged strategies are smaller, at $162 million in total assets under management, according to the report.

The overall ETF business has experienced outflows in August, but leveraged and inverse ETFs have been popular recently. [Leveraged ETFs Buck Recent Outflow Trend]

Inverse ETFs that bet against the market have seen a boost in activity recently on fears that U.S. stocks are poised for a correction after a robust summer rally. [Short ETFs See Inflows on Fears Market Set for a Fall]

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