As part of its growing line of single-stock ETFs, Direxion is giving traders the ability to go forward or reverse (more so up or down) on Ford’s stock with its latest pairing: the Direxion Daily F Bull 2X Shares (FRDU)/Direxion Daily F Bear 1X Shares (FRDD).
FRDU allows traders to play off positive news emanating from the 122-year-old automotive company. For example, the company noted it sold more than 200,000 F-series trucks in the second quarter. That represents an increase of 11.5% year-over-year. Other examples include Ford using government subsidies to continue building out its electric vehicle (EV) lineup to compete with its automotive peers in the growing EV space. The obvious kicker with FRDU is that it adds double exposure to Ford’s stock, allowing traders to maximize their profit potency.
“Ford is more than just a legacy automaker—it’s a trader’s stock,” said Douglas Yones, CEO of Direxion. “Its combination of brand familiarity, price accessibility, and exposure to critical macro trends, such as EV adoption and industrial policy, makes it a natural fit for tactical trading. FRDU and FRDD provide precise ways to capture short-term moves in one of America’s most-watched companies.”
Right now, Ford’s stock is rising toward the upside with a YTD return of over 13%. If that YTD trend can hold, traders will want to keep FRDU handy as part of their tools.
Ford’s Bearish Side
Like a basketball player with the ability to dribble with both hands, a complete trader has the ability to profit from the upside or the downside. With that, traders can take the other side of the Ford trade with the bearish FRDD.
Having the inverse trade allows market players to take advantage of information that could create a negative market reaction. In the case of Ford, for example, a recent SUV recall could spark a sell-off. in the U.S., automotive recalls come under the scrutiny of the U.S. National Highway Traffic Safety Administration. In this case, Ford’s SUV recall involved a year-long investigation that revealed a potential fuel leak that could potentially cause a fire.
For traders analyzing the information, recalls can serve as a costly fix depending on their severity. In the case of Ford, it forecasted a potential $570 million hit to its Q2 results.
“We estimate the aggregate cost of the action, based on the remedy options we are evaluating, to be about $570 million and will be reflected in our second quarter 2025 results,” Ford said per the Reuters report.
As such, the market responded accordingly. We can see that the news sparked a sell-off on July 16 as a result of the recall. This is where a fund like FRDD could prove beneficial.
Staying Flexible
Of course, well-capitalized automotive companies can slough off a recall and resume business as usual. Ford is certainly no stranger to this. So once the news of the recall subsides and its stock comes back, traders can use FRDU.
This flexibility speaks to the advantages of using leveraged/inverse funds. Direxion has a full suite of single-stock and broad market ETFs for traders to consider.
For more news, information, and analysis, visit the Leveraged & Inverse Content Hub.