On Wednesday, Direxion expanded its fund lineup. They introduced two new pairs of single-stock Leveraged & Inverse ETFs.
A Palantir Strategy
Two of these new ETFs focus on Palantir. The Direxion Daily PLTR Bull 2X Shares (PLTU) looks to provide 200% of the daily results of Palantir’s common stock. Meanwhile, the Direxion Daily PLTR Bear 1X Shares (PLTD) seeks the inverse returns (-100%) of Palantir’s daily performance.
“Palantir is a key player in the AI space,” noted Ed Egilinsky. Egilinsky is the Managing Director and Head of Sales, Distribution and Alternatives at Direxion. “This is a way for traders to express short term views, specifically on a company that’s focused on AI and is one of the most actively traded stocks in the marketplace.”
Betting on Berkshire Hathaway
The other new pair of Direxion funds looks at Berkshire Hathaway. Much like PTLU, the Direxion Daily BRKB Bull 2X Shares (BRKU) is designed to provide 200% of the daily results of Berkshire Hathaway’s stock performance. Alternatively, the Direxion Daily BRKB Bear 1X Shares (BRKD) offers the potential of inverse returns on Berkshire Hathaway’s daily results.
These new Berkshire funds give traders new options to make short-term bets on one of Wall Street’s biggest names. This strategy can prove especially beneficial ahead of earnings calls.
Direxion’s Leveraged & Inverse ETFs are primarily designed to offer short-term bets for active traders. Subsequently, investors in these funds should posses a thorough understanding of where the company is trending. However, these high-risk ETFs can lead to high rewards, especially for traders and institutional investors with a strong risk tolerance.
“We want to continue to provide the types of Leveraged & Inverse ETFs for the traders who recognize and know our brand,” added Douglas Yones, CEO of Direxion. “We want to continue to lean in and provide them with the access vehicles that they’ve been looking for time and time again.”
Direxion’s ever-expanding library of Leveraged & Inverse ETFs continues to resonate with the investing public. Significantly, one of the largest Direxion funds, the Direxion Daily Semiconductor Bull 3x Shares (SOXL), has over $10.9 billion in assets under management.
For more news, information, and analysis, visit the Leveraged & Inverse Channel.
