Direxion has revived one of its previously shuttered leveraged ETF ideas and increased the stakes on its original design.
On Wednesday, Direxion re-launched the leveraged pharmaceutical ETF, the Direxion Daily Pharmaceutical & Medical Bull 3X Shares (NYSEArca: PILL), which has a 1.12% net expense ratio.
“The pharmaceutical sector is continuously evolving, with research and development leading to new product innovation and availability,” Sylvia Jablonski, Managing Director at Direxion, said in a note. “The launch of PILL is timely, allowing traders to magnify their short-term bullish perspective on the popular sector.”
Direxion previously offered the Direxion Daily Pharmaceutical & Medical Bull 2X Shares (NYSE: PILL), which was shut down at the end of March after it only accumulated a little over $1 million in assets under management in two years of trading. The revamped PILL, though, comes with a 3x or 300% daily leverage, compared to its old 2x or 200% daily leverage.
The Daily Pharmaceutical & Medical Bull 3X Shares tries to reflect the performance of the Dynamic Pharmaceutical Intellidex Index, which tracks 30 U.S. pharma companies engaged in the research, development, manufacture, sale or distribution of pharmaceuticals and drugs of all types.