“The Fed will raise rates for the first time since 2006 in September and lift them to at least 1.5 percent next year, according to the median forecast of more than 50 economists in a Bloomberg survey,” according to the news agency.
Although money has been piling into into ETFs like XLF in recent months, investors have taken a more muted approach to leveraged equivalents. For example, the ProShares Ultra Financials (NYSEArca: UYG), the double-leveraged answer to the iShares U.S. Financial Services ETF (NYSEArca: IYG), has not added any new money this month.
The Direxion Daily Financial Bull 3X Shares (NYSEArca: FAS), which attempts to deliver triple the daily returns of the Russell 1000 Financial Services Index, has added over $8 million this month. FAS and UYG are up 4.5% an 3.3%, respectively, over the past month.
Direxion Daily Financial Bull 3X Shares
