On Tuesday, the Dow Jones Industrial Average closed down 473 points. For investors who are unnerved by this type of volatile movement, they can look to consumer discretionary and consumer staples exchange-traded funds (ETFs) for some stability.
Similarly, traders can take advantage of these market oscillations with Direxion Daily Consumer Discretionary Bull & Bear 3X Shares and Direxion Daily Consumer Staples Bull & Bear 3X Shares.
Late last year, Direxion bolstered its already expansive line of leveraged and inverse ETFs with the aforementioned products that reflected the most recent changes to the Global Industry Classification Standard (GICS®) sector changes. The ETFs offer savvy investors exposure to the existing Consumer Staples sector and to the Consumer Discretionary sector.
Under the new GICS structure, the Telecommunication Services sector expanded to include telecommunication companies, and select companies from the Consumer Discretionary and Information Technology sectors, and was renamed Communication Services.
Consumer Discretionary, which no longer includes media and entertainment companies, continues to primarily offer exposure to retailers, including Amazon and Home Depot. This sector remains an attractive option for growth investors with its continued exposure to stocks with relatively high expected earnings and sales growth.
Consumer Staples, on the other hand, retains a greater orientation toward value stocks with exposure to companies considered to be more essential to daily living, such as Procter & Gamble and Coca-Cola.
- Direxion Daily Consumer Staples Bull 3X Shares ETF (NYSEArca: NEED): seeks daily investment results of 300% of the daily performance of the Consumer Staples Select Sector Index (the “index”). The index includes domestic companies from the consumer staples sector which includes the following industries: food and staples retailing; household products; food products; beverages; tobacco; and personal products.
- Direxion Daily Consumer Staples Bear 3X Shares ETF (NYSEArca: LACK): seeks daily investment results of 300% of the inverse of the daily performance of the Consumer Staples Select Sector Index (the “index”). The index includes domestic companies from the consumer staples sector which includes the following industries: food and staples retailing; household products; food products; beverages; tobacco; and personal products.
- Direxion Daily Consumer Discretionary Bull 3X Shares (NYSEArca: WANT): seeks daily investment results of 300% of the daily performance of the Consumer Discretionary Select Sector Index. The index is provided by S&P Dow Jones Indices (the “index provider”) and includes domestic companies from the consumer discretionary sector.
- Direxion Daily Consumer Discretionary Bear 3X Shares (NYSEArca: PASS): seeks daily investment results of 300% of the inverse (or opposite) of the daily performance of the Consumer Discretionary Select Sector Index. The index is provided by S&P Dow Jones Indices and includes domestic companies from the consumer discretionary sector.
“The retail-oriented WANT and PASS allow traders to take bold positions on consumer discretionary stocks, while NEED and LACK will do the same for those looking for leveraged trades on today’s consumer staples stocks,” said David Mazza, Managing Director and Head of Product at Direxion.
For more trends in the inverse and leveraged ETF space, visit Leveraged & Inverse ETF Channel.
