A New Bullish ETF Play on Large Eurozone Blue Chips

As the rally in European equities intensifies, bullish traders can utilize a new leveraged Europe exchange traded fund to capture quick turns in the 50 largest and most liquid blue-chip companies.

On Wednesday, Direxion launched the Direxion Daily EURO STOXX 50 Bull 3X Shares (NYSEArca: EUXL). EUXL has a 1.04% expense ratio.

“The outlook for European equities has turned bullish, with growing interest from traders,” Sylvia Jablonski, Managing Director at Direxion, said in a note. “As political risks dissipate following the results of the French elections, the Eurozone economy strengthens and prospects for earnings improve, this may offer active traders exposure to a highly reputable index tracking 50 of the largest and most liquid blue-chip European stocks.”

The Daily EURO STOXX 50 Bull 3x Shares ETF tries to reflect the performance of the daily 3x or 300% leveraged returns of the benchmark EURO STOXX 50 Index.

The new leveraged ETF tries to achieve its 3x target by investing in financial instruments that provide daily leveraged exposure, including swap agreements and futures contracts, along with money market funds or short-term debt instruments on a day-to-day basis.