A Look at Direxion’s New Billionaire Tracking ETF

ETF Trends

Investors looking to follow the smart money and own some of the same stock as the sharpest minds on Wall Street have a new exchange traded fund to consider with the debut of the Direxion iBillionaire Index ETF (NYSEArca:IBLN) today.

IBLN follows iBillionaire Inc.’s iBillionaire Index (BILLIONR). That index “is designed to track and measure the performance those who have, over time, reaped the biggest rewards on Wall Street: financial billionaires. [Billionaire ETF on the Way]

“The iBillionaire Index, introduced in November 2013, consists of the 30 leading U.S. stocks in which a pool of up to 10 billionaires has invested the most assets. All billionaires in the pool must meet several criteria, including a portfolio turnover rate of less than 50 percent and a demonstrated long-term investment strategy,” according to a statement released by Direxion.

The index was launched in November 2013. Only money managers that oversee more than $100 million in U.S. stocks are eligible for inclusion. IBLN will only feature exposure to large-cap U.S. equities. The new ETF will charge 0.65% per year.

“This strategic beta ETF allows investors to have unprecedented access to the strategies successfully deployed by well-known billionaires, in a way that’s transparent, liquid and cost-efficient,” said Brian Jacobs, President of Direxion Investments, in the statement. “We look forward to continuing to harness our index-replication expertise to further democratize Wall Street—providing greater access to opportunities and data previously only available to the wealthiest and most sophisticated investors.”

Top-10 holdings in IBLN include a 4.1% weight to Williams Cos. (WMB), a 3.9% allocation to Micron Technology (MU) and an almost 3.7% weight to Halliburton (HAL). Other members of the new ETF’s top-10 lineup include Apple (AAPL), Priceline (PCLN) and Anadarko Petroleum (APC), according to Direxion data.

IBLN is the fourth new ETF brought to market this week by Direxion. Earlier this week, the firm launched the Direxion Daily 7-10 Treasury Bull 2x Shares (SYTL) , Direxion Daily Small Cap Bull 2x Shares (SMLL) and the Direxion Daily Mid Cap Bull 2x Shares (MDLL) .

ETF Trends editorial team contributed to this post.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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