Direxion Adds Triple Leveraged EM Bond ETF Option

Direxion Adds Triple Leveraged EM Bond ETF OptionAs emerging market assets attract greater attention, Direxion Investments expanded on its line of leveraged exchange traded fund strategies with a geared emerging market bond strategy.

On Thursday, Direxion rolled out the Direxion Daily Emerging Markets Bond Bull 3X Shares (NYSEArca: EMBU). EMBU has a 1.07% expense ratio.

The Daily Emerging Markets Bond Bull 3x Shares tries to reflect the daily 3x or 300% performance of the benchmark J.P. Morgan EMBI Global Core Index. Potential investors should keep in mind that the leveraged ETF tries to achieve a 300% of its benchmark index for a single day, so the fund should not be expected to provide three times the return of the benchmark’s cumulative return for periods longer than a single day.

The underlying index is comprised of U.S. dollar-denominated emerging market debt. As of August 14, the index included 374 constituents from 55 emerging market countries, according to the prospectus sheet.

EMBU’s top country weights include Mexico 6.0%, Indonesia 5.0%, Turkey 4.6%, Russia 4.4% and Philippines 4.0%.