The ETF world is entering the summer slowdown, a time when trading volumes recede and ETF launches taper off for a few months. But that did not stop two issuers from collectively debuting five new products this week, as investors now have a handful of new funds to chew on. Direxion launched a leveraged product focusing on equities yesterday, while iShares is rolling out four new fixed income ETFs during today’s trading [for more ETF news and analysis subscribe to our free ETF Daily Roundup].
Direxion’s S&P Bull Fund
Known for its large suite of leveraged and inverse products, Direxion debuted a 200% leveraged product yesterday, the Daily S&P 500 Bull 2x Shares (SPUU). SPUU is just the third ETF to offer such exposure to the S&P 500, as it will compete with its predecessors, SSO and RSU.
iShares Focused on Interest Rates
The threat of rising rates is one of the most prevalent fears in today’s investing world, so it is no surprise that iShares focused two of its new funds on interest rate hedging strategies:
- Interest Rate Hedged Corporate Bond ETF (LQDH): This fund will feature active management, holding the popular LQD fund and short positions in Treasury futures to help mitigate interest rate risk.
- Interest Rate Hedged High Yield Bond ETF (HYGH): HYGH employs an identical strategy to LQDH, but instead holds HYG along with short positions in Treasury futures.
- Dec 2018 Corporate Term ETF (IBDH): This product will use a target expiration date strategy to invest in corporate bonds that mature in 2018.
- Dec 2016 Corporate Term ETF (IBDF): Features identical exposure to IBDH, but instead invests in bonds that will expire in 2016.
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Disclosure: No positions at time of writing.
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