Direxion Replaces Benchmark Indices on 8 ETFs

ETF Trends

Exchange traded fund providers typically partner with a reputable index provider to create fund products that provide the best exposure to a targeted market. Direxion Shares , a provider known for its inverse and leveraged ETF vehicles, recently swapped out the underlying indices on eight of its funds in favor of Standard & Poor’s benchmarks.

According to a press release, effective on or about June 29, the following eight ETFs, which currently track Russell 1000 and mid-cap Indices, will begin tracking S&P indices, along with trading under minor changes to fund names and ticker symbols:

  • Direxion Daily S&P 500 Bull 3X Shares (NYSEArca:SPXL) . SPXL will try to reflect the daily 300% performance of the S&P 500 Index and replace the Direxion Daily Large Cap Bull 3X Shares (BGU - News) .
  • Direxion Daily S&P 500 Bear 3X Shares (SPXSF - News) . SPXS will try to reflect the daily -300% performance of the S&P 500 and replace the Direxion Daily Large Cap Bear 3X Shares (BGZ - News) .
  • Direxion Daily Mid Cap Bull 3X Shares (NYSEArca:MIDU) . The fund will try reflect the daily 300% return of the S&P Mid Cap 400 Index. MIDU will also replace the MWJ ticker symbol.
  • Direxion Daily Mid Cap Bear 3X Shares (NYSEArca:MIDZ) . The fund will reflect the daily -300% return of the S&P Mid Cap 400 Index. MIDZ replaces the MWN ticker symbol.
  • Direxion Daily Technology Bull 3X Shares (NYSEArca:TECL) . The ETF will follow the daily 300% return of the Technology Sector Index. It currently trades under TYH.
  • Direxion Daily Technology Bear 3X Shares (NYSEArca:TECS) . The ETF will follow the daily -300% return of the Technology Sector Index. It currently trades under TYP.
  • Direxion Daily Energy Bull 3X Shares (ERX - News) . The ticker symbol will remain the same. ERX will reflect the 300% return of the Energy Select Sector Index.
  • Direxion Daily Energy Bear 3X Shares (ERY - News) . The ticker symbol will remain the same. The fund will track the -300% return of the Energy Select Sector Index.

“We are very pleased to expand our relationship with Standard & Poor’s, whose market indices have long been among the leaders in the industry,” Dan O’Neill, Direxion’s President and Chief Investment Officer, said in the press release. “We feel that these S&P indices provide our investors with the most recognizable exposure to these underlying markets.”

Potential investors should note that inverse/leverage ETFs are meant for short-term hedging since the funds rebalance on a daily basis. As a result of compounding issues, the funds may not reflect their respective leverages to the long-term performance of the underlying assets.

For more information on the ETF industry, visit our current affairs category.

Max Chen contributed to this article.

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