Direxion has launched two new ETFs providing 200% bull and bear exposure to TIPS.
The Direxion Daily TIPS Bull 2X Shares (IPL) and the Direxion Daily TIPS Bear 2X Shares (TIPD) listed on the NYSE on April 7, each with an expense ratio of 107 basis points.
The new funds seek to achieve 200%, or 200% of the inverse, of the daily performance of the Solactive TIPS ETF Index, which provides exposure to inflation-protected U.S Treasury bonds, commonly known as “TIPS,” according to a statement from the firm.
TIPS are securities issued by the U.S. Treasury that are designed to provide inflation protection to investors. TIPS are income-generating instruments whose interest and principal payments are adjusted for inflation, making them highly attractive in the current environment.
“Following decades when inflation was all but non-existent, the prices of everything from cars to computers have jumped in recent months,” David Mazza, managing director, head of product at Direxion, said in a statement.
“TIPL and TIPD allow traders to take amplified bullish or bearish positions on the US TIPS market,” Mazza added.
Like all leveraged ETFs, these new ETFs offered by Direxion are intended only for investors with an in-depth understanding of the risks associated with seeking leveraged investment results, and who plan to actively monitor and manage their positions, according to a statement from the firm.
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