A fund that we have previously not covered that surfaced in August of this year is known as IBLN (Direxion iBillionaire Index ETF, Expense Ratio 0.65%).
Direxion of course is well known and established on their suite of Daily leveraged products (Bull and Bear 3X) as well as a growing lineup (we see 57 funds listed in total from them currently) of niche funds such as IBLN.
While the lion’s share of the assets under management at the moment at Direxion lie in their very popular TNA (Direxion Daily Small Cap Bull 3X Shares, Expense Ratio0.95%) and FAS (Direxion Daily Financial Bull 3X Shares, Expense Ratio 0.95%) which have approximately $2.7 billion across them at last glance), IBLN being a very new fund has quietly gathered more than $31 million since inception.
The fund is not leveraged nor is it intended for short term trading by design, but instead an index based around thirty large cap stocks with the intention of being, according to fund literature “The iBillionaire Index (BILLIONR) is comprised of the 30 large-cap U.S. equities in which a select pool of investment billionaires has allocated the most assets, according to Form 13F filings.
So in layman’s terms, Direxion combs through institutional “holders” filings (13Fs) and isolates equities where noted investment billionaires, most recognized as luminaries in the industry, are parking their assets. The results are interesting.
Top holdings at the moment are Actavis PLC (3.80%), Micron Technology Inc. (3.66%), eBay Inc. (3.55%), McGraw Hill Financial Inc. (3.53%), and Dollar General Corp. (3.53%). The similarity in weightings should be noted and attributed to the fact that the index employs an equal weighted approach, where the holdings are re-balanced periodically back to equal weight (having the effect of trimming the winners and adding to the laggards).
Direxion categorizes this particular ETF in the “Strategic Beta” category, which is not only thriving and developing at Direxion, but it likely resonates with ETF model managers and portfolio managers in the space. Other tickers that Direxion has launched in recent times in Strategic Beta include KNOW (All Cap Insider Sentiment Shares, Expense Ratio 0.65%), VSPY (S&P 500 Volatility Response Shares, Expense Ratio 0.45%), QQQE (NASDAQ-100 Equal Weighted Index Shares, Expense Ratio 0.35%), and ZMLP (Zacks MLP High Income Shares, Expense Ratio 0.65%).
Direxion iBillionaire Index ETF
For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at pweisbruch@streetonefinancial.com
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