Direxion Debuts Bull/Bear ETFs for AI and Data | ETF Trends

On Wednesday, Direxion released a pair of dueling ETFs. They are the Direxion Daily AI and Big Data Bull 2X Shares (AIBU) and the Direxion Daily AI and Big Data Bear 2X Shares (AIBD) ETFs.

As a bullish ETF, AIBU aims to reach 200% of the daily performance from the Solactive US AI & Big Data Index. Alternatively, AIBD looks to achieve the opposite results by seeking 200% of the inverse daily performance of the same index.

AI and Data Exposure

The index invests in companies within the U.S that operate within the fields of artificial intelligence and big data. Companies within the index must generate at least 50% of revenue from AI, AI-driven services, and natural language processing, or data analytics and big data.

Eligible companies must have a market cap of at least $100 million on the day the index rebalances.  Additionally, chosen companies need to have a minimum average daily value traded of at least $5 million both over a month and over six months prior to the index’s rebalancing.

These funds are coming online as AI and big data continue to remain in the spotlight. Data from Statista finds that the global AI market was sized at about $207 billion in 2023. By 2030, this market may reach upward  of $1.8 trillion.

“AIBU and AIBD seek to capitalize on the relationship between AI and big data. We’re launching these ETFs at a pivotal time. [AI and] its capabilities are now well established, but innovation is ongoing. Multiples for these companies are [high. And] sustaining valuations will be key,” noted Edward Egilinsky, Direxion managing director and head of sales and alternatives. “These ETFs offer traders a chance to express short-term convictions in the AI-big data sector.”

AIBD and AIBU represent two of the many inverse ETFs launched by Direxion. Currently, one of the largest Direxion funds is the Direxion Daily Semiconductor Bull 3x Shares (SOXL). It has over $10 billion in assets under management.

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