Direxion, one of the largest issuers of leveraged exchange traded funds, is planning to change the indexes its leveraged pharmaceuticals and real estate ETFs track.
Currently, the Direxion Daily Pharmaceutical & Medical Bull 3X Shares (NYSEArca: PILL) seeks 300% of the daily performance of the Dynamic Pharmaceutical Intellidex Index, which consists of common shares of companies that are principally engaged in research, development, manufacture, sale or distribution of pharmaceuticals and drugs of all types.
Effective August 1, PILL will track the S&P Pharmaceuticals Select Industry Index, attempting to deliver triple the daily returns of that index.
That index “is a modified equal-weighted index that is designed to measure performance of the stocks comprising the S&P Total Market Index that are classified in the Global Industry Classification Standard (GICS) pharmaceuticals sub-industry,” according to Direxion.
The Direxion Daily MSCI Real Est Bull 3X ETF (NYSEArca: DRN) and the Direxion Daily MSCI Real Est Bear 3X ETF (NYSEArca: DRV) are also getting new indexes.
Currently, DRN tries to deliver triple the daily returns of the MSCI US REIT Index while the bearish DRV looks to deliver triple the daily inverse returns of that benchmark.
Effective August 1, those leveraged real estate ETFs are moving to the MSCI US IMI Real
Estate 25/50 Index.
“The MSCI US IMI Real Estate 25/50 Index is designed to measure the performance of the large-, mid- and small-capitalization segments of the U.S. equity universe that are classified in the real estate sector as per the Global Industry Classification Standard (GICS),” according to Direxion.
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