ETF Spotlight on the Direxion All Cap Insider Sentiment Shares (NYSEArca: KNOW), part of an ongoing series.

Assets: $22.6 million

Objective: The Direxion All Cap Insider Sentiment Shares ETF tries to reflect the performance of the Sabrient Multi-Cap Insider/analyst Quant-weighted Index, which is comprised of 100 of the top publicly-traded companies in the S&P 1500 index that reflect positive sentiment among those “insiders” closet to the company’s business.

Holdings: Top holdings Lexmark International (NYSE: LXK) 2.6%, Symantic Corp (NasdaqGS: SYMC) 2.5%, Cisco Systems (NasdaqGS: CSCO) 2.4%, CenturyLink (NYSE: CTL) 2.4% and Cablevision Systems Corp (NYSE: CVC) 2.4%.

What You Should Know:

  • Direxion Investments sponsors the fund.
  • KNOW has a 0.65% expense ratio.
  • The ETF has 100 holdings and the top ten components make up 23.5% of the overall portfolio.
  • Sector allocations include basic materials 2.4%, consumer discretionary 14.5%, financials 12.7%, real estate 6.2%, telecom 4.8%, energy 13.0%, industrials 6.4%, tech 16.9%, consumer staples 1.1%, healthcare 15.8% and utilities 6.2%.
  • Market capitalization includes mega-caps 13.7%, large-caps 37.3%, medium 43.0% and small-cap 6.0%.
  • The fund is up 1.4% over the past month, up 7.3% over the last three months and up 10.9% year-to-date.
  • KNOW is 9.2% above its 200-day exponential moving average.
  • The ETF lets investors track stocks that corporate insiders are accumulating.
  • The underlying index makes a monthly review to rebalance toward strong insider buying and favorable analyst ratings.
  • The argument for shadowing insider moves makes sense since company officers and executives tend to have the most information on their companies’ outlook.

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