Direxion Investments President Brian Jacobs joined ETF Trends Publisher Tom Lydon at Charles Schwab Impact Conference in Denver to discuss investors’ desire for generating more income while reducing volatility with exchange traded funds.
Jacobs noted that interest has been increasing in the Direxion Zacks MLP High Income Shares (NYSEArca: ZMLP) as means of gaining added portfolio income. ZMLP debuted earlier this year.
ZMLP tracks a factors-based index that ranks holdings based on value, liquidity, short itnerest, dividend yield and other factors. Components are then equally weighted to make up 4% of the total portfolio and rebalanced quarterly.
Jacobs also highlighted the Direxion S&P 500 Volatility Response Shares (NYSEArca: VSPY), which can act as an “airbag” for investors when volatility rises.
VSPY tries to reflect the performance of the S&P 500 Volatility Response Index, which adjusts its composition of S&P 500 stocks and T-Bills in response to volatility in the S&P 500 index.
Direxion is also the second-largest issuer of leveraged and inverse ETFs.
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