Levered, Inverse ETFs to Empower Financial Advisors

The ETFs include the Portfolio+ S&P Mid Cap ETF (PPMC), Portfolio+ Developed Markets ETF (PPDM), Portfolio+ Emerging Markets ETF (PPEM), Portfolio+ Total Bond Market ETF (PPTB), Portfolio+ S&P 500 ETF (PPLC) – formerly Direxion Daily S&P 500® Bull 1.25X Shares, and Portfolio+ S&P Small Cap ETF (PPSC) – formerly Direxion Daily Small Cap Bull 1.25X Shares.

“Most of our products historically have been known for being, as I said, athletic sort of motorcycle, more than minivan, and now, we’re offering products that are much more like the traditional ETFs,” O’Neill said.

If investors think that a portfolio offering 100% exposure to the markets is good, it stands to reason that a portfolio with 125% exposure can be a little better, even after accounting for potential risks.

“Our thesis was: well if you’re an advisor and you have a great idea, you have this core allocation strategy why not sweeten a little bit, why not enhance it a little bit with the extra 0.25 beta point,” Sylvia Jablonski, Managing Director of Capital Markets and Institutional ETF Strategist for Direxion, said at the conference. “So what you’re doing is taking a look at your large-cap exposure and enhancing it a little bit with a levered, lightly levered ETF.”

For more ETF-related commentary from Tom Lydon and other industry experts, visit our video category.