Following the recent launch of its first four single stock leveraged and inverse ETFs, Direxion today announced the launch of six additional single stock leveraged and inverse ETFs, listing on the Nasdaq, which allows active traders to obtain magnified, or inverse, exposure to the daily performance of the common stocks of Amazon, Google or Microsoft.
The new ETFs are:
“Amazon, Google, and Microsoft are three of the world’s largest stocks, are heavily traded, and are widely recognized,” said Direxion Managing Director and Head of Product David Mazza in a news release. “The ability to express short-term views on single stocks using a Bull or Bear fund is an excellent way for traders to respond tactically to potential company events and market moves.”
As products built for active traders, Direxion’s pairs of single-stock leveraged and inverse ETFs are meant to be used for short-term trading purposes. Leveraged and inverse single stock ETFs should not be viewed as buy-and-hold investments, but rather trading tools for traders with a high-risk tolerance.
In addition, unlike traditional ETFs, or even other levered and/or inverse ETFs, these ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. The ETFs do not invest directly in AMZN, GOOGL, or MSFT.
Last month, Direxion launched the Direxion Daily AAPL Bull 1.5X (AAPU), the Direxion Daily AAPL Bear 1X Shares (AAPD), the Direxion Daily TSLA Bull 1.5X Shares (TSLL), and the Direxion Daily TSLA Bear 1X Shares (TSLS).
“This environment is one that’s ripe for short-term tactical trading opportunities,” Mazza told VettaFi in an interview in August. “And we’re likely to be in an environment where, because of the Federal Reserve’s plans to increase interest rates, we see heightened volatility for some time, so there are opportunities for traders to be more tactical with their portfolios.”
All Direxion leveraged and inverse ETFs are intended only for investors with an in-depth understanding of the risks associated with seeking leveraged or inverse investment results, and who plan to actively monitor and manage their positions.
For more news, information, and strategy, visit the Leveraged & Inverse Channel.