On Thursday, Direxion released two new ETFs, the Direxion Daily Concentrated Qs Bull 2X Shares (NYSE Arca: QQQU) and the Direxion Daily Concentrated Qs Bear 1X Shares (NYSE Arca: QQQD).
Both funds track the Indxx Front of the Q Index but go about it in vastly different ways. The Indxx Front of the Q Index comprises seven of the largest Nasdaq-listed companies. They include Apple, Microsoft, Alphabet, Amazon, NVIDIA, Tesla, and Meta Platforms. In other words, the index provides exposure to the Magnificent Seven stocks that have dominated discussion around the U.S. market for the past year or so.
“QQQU and QQQD capitalize on key market drivers, to include artificial intelligence, cloud computing and semiconductors,” said Ed Eglinsky, a managing director with Direxion and its head of sales and alternatives.
“No other leveraged or inverse products exist in the market today that specifically provides this type of concentrated QQQs exposure. These Funds offer traders a unique opportunity to express their short-term conviction on the largest companies listed on the Nasdaq,” Egilinsky added.
QQQU aims to achieve 200% of the index’s daily performance. Meanwhile, QQQD looks to provide the inverse of the Index’s daily performance.
QQQU has a net expense ratio of 1.09%, and QQQD charges 0.69%. Due to the daily nature of investment results, both funds are intended to be short-term trading options. While both ETFs are intended for experienced investors, each provides a unique method for monitoring the Nasdaq’s biggest performers.
“There has been strong investor interest in mega-cap growth stocks in 2024,” notes VettaFi head of research Todd Rosenbluth.
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