Direxion, one of the largest issuers of inverse and leveraged exchange traded funds, has filed plans for a pair of triple-leveraged ETFs based on the new communications services sector.
Last year, index providers MSCI and Standard & Poor’s announced the telecommunications sectors would be renamed communications services and would add companies from the consumer discretionary and technology sectors. Tech additions include Facebook and Google parent Alphabet Inc.
Direxion is looking to introduce the Direxion Daily Communication Services Index 3X Bull Shares and the Direxion Daily Communication Services Index 3X Bear Shares.
What Those ETFs Will Do
Those funds, assuming they come to market, will track the Communication Services Select Sector Index. That is the same index used by the Communication Services Select Sector SPDR Fund (NYSEArca: XLC).
XLC is the first ETF dedicated to the new communication services sector. The new ETF tracks the Communication Services Select Sector Index and “seeks to provide precise exposure to companies from the media, retailing, and software & services industries in the U.S.,” according to State Street Global Advisors (SsgA).
The index includes securities of companies from diversified telecommunication services; wireless telecommunication services; media; entertainment; and interactive media & services.
Direxion’s triple-leveraged communication services ETFs are expected to list on the NYSE Arca exchange. The filing did not include tickers or expense ratios.
For more information on new fund products, visit our new ETFs category.