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%.
“Emerging market bonds can offer the opportunity to gain higher yield and return, which has been the case recently,” Sylvia Jablonski, Managing Director at Direxion, said in a note. “Traders often look to emerging market bonds as a means to support or express bullish views on the prospect for growth and development of these nations.”
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EMBU may be seen as a triple leveraged play of the popularly traded iShares J.P. Morgan USD Emerging Markets Bond ETF (NasdaqGM: EMB), which tries to reflect the performance of the J.P. Morgan EMBI Global Core Index.
For more information on new fund products, visit our new ETFs category.