fbpx
Wikipedia

Direxion

March 16, 2024

Direxion is a provider of financial products known for its leveraged ETFs. Founded in Alexandria, Virginia, the company also has offices in New York City, Boston, and Hong Kong.

Direxion
FormerlyPotomac Funds
Company typePrivate
IndustryFinance
Founded1997; 27 years ago (1997) in Alexandria, Virginia, United States
ProductsLeveraged, inverse, and thematic exchange-traded funds
Websitedirexion.com

History edit

Direxion was founded in 1997 under the name Potomac Funds as a provider of mutual funds. The original name referred to the Potomac River near the company's first office in Alexandria, Virginia.[1] In November 1997, Potomac Funds became the second company to introduce an inverse mutual fund, following a similar move by Rydex Investments in 1994.[2] The company began using the Direxion name in 2006. The use of the letter "X" in the new name was intended to draw attention to the leveraged index funds in the company's offerings. That year the company also opened an office in the Prudential Tower in Boston, Massachusetts.[3]

Direxion launched its first leveraged ETFs in 2008.[4] In November 2008 the company was the first to offer ETFs with 3X leverage, a move that was copied some months later by its competitors ProShares and Rydex Investments. The move made it one of the fastest-growing ETF companies, with its sixteen 3X ETFs reaching a total of $3.4 billion in assets by April 2009.[5][6] The move towards higher-leverage offerings by the three companies provoked scrutiny from the U.S. Securities and Exchange Commission and the Massachusetts Secretary of the Commonwealth, and a number of broker-dealers stopped selling leveraged ETFs. The criticisms centered around perceived tracking error: the ETFs were designed to achieve the stated multiple of the return on the underlying on a daily basis only (with the cost of the daily rebalancing passed on to investors in the form of higher expense ratios), but commentators suggested that some investors, even institutional investors, had mistakenly tried to use the inverse products as longer-term hedges against their underlyings.[7][8][9]

In December 2010, Direxion added 24 ETFs to its range of offerings, including some non-leveraged funds, and continued to expand its offering of non-leveraged funds in 2011.[10][11] The company's gold miner bull and bear ETFs are among the most-traded gold-related leveraged ETFs.[12][13] In February 2020, the company announced the launch of its first leveraged environmental, social and corporate governance fund, offering 150% long exposure and 50% short exposure respectively to the best- and worst-scoring companies in the MSCI USA ESG index, with a quarterly rebalance.[14] In March 2020, amidst the 2020 stock market crash, Direxion announced that it would reduce the leverage of ten of its ETFs from 3x to 2x and close eight others.[15] This was part of a broader trend among providers of leveraged ETFs during the first quarter of 2020; nevertheless, Direxion saw inflows of nearly $4 billion during March 2020 alone.[16]

List of funds edit

Leveraged and inverse ETFs edit

Direxion Daily Bear 1X Shares Bull 2X Shares Bear 2X Shares Bull 3X Shares Bear 3X Shares References
Ticker Comments Ticker Comments Ticker Comments Ticker Comments Ticker Comments
S&P 500 SPDN   SPUU   SPXL   SPXS  
Mid Cap MDLL Liquidated Oct. 2015 MDSS Registered, never offered MIDU   MIDZ Liquidated Apr. 2020 [17][18][19]
Small Cap   Registered, never offered SMLL   SMSS Registered, never offered TNA   TNZ   [10][19]
Regional Banks DPST   WDRW Liquidated Apr. 2020 [17]
Gold BAR   BARS Liquidated Dec. 2014 [20]
Gold Miners Index MELT Liquidated Sep. 2017 NUGT 3X until May 2020 DUST 3X until May 2020 NUGT Became 2X in May 2020 DUST Became 2X in May 2020 [21][15]
Junior Gold Miners Index JNUG 3X until May 2020 JDST 3X until May 2020 JNUG Became 2X in May 2020 JDST Became 2X in May 2020 [15]
Silver Miners Index SHNY Liquidated Sep. 2018 DULL Liquidated Sep. 2017 [21][22]
Energy ERYY Liquidated Sep. 2017 ERX 3X until May 2020 ERY 3X until May 2020 ERX Became 2X in May 2020 ERY Became 2X in May 2020 [21][15]
S&P Oil & Gas Exp. & Prod GUSH 3X until May 2020 DRIP 3X until May 2020 GUSH Became 2X in May 2020 DRIP Became 2X in May 2020 [15]
Natural Gas Related GASL Liquidated Apr. 2020 GASX Liquidated Apr. 2020 [17]
Agribusiness COWL Liquidated Sep. 2012 COWS Liquidated Sep. 2012 [23]
Basic Materials MATL Liquidated Oct. 2015 MATS Liquidated Sep. 2012 [18][23]
S&P Biotech LABS Liquidated Sep. 2017 LABU   LABD   [21]
Consumer Staples SPLZ Liquidated Sep. 2017 NEED   LACK   [21]
Cyber Security & IT HAKK Liquidated Sept. 2017 HAKD Liquidated Apr. 2017 [21][24]
Financials FAZZ Liquidated Sep. 2017 FAS   FAZ   [21]
Healthcare CURE   SICK Liquidated Sep. 2017 [21]
Homebuilders & Supplies NAIL   CLAW Liquidated Sep. 2017 [21]
Pharmaceutical & Medical PILL Liquidated Apr. 2017 PILS Liquidated Apr. 2017 PILL Recycled ticker   Registered, never offered [25]
Retail RETL   RETS Liquidated Sep. 2012 [23]
Semiconductors SOXL   SOXS   [citation needed]
Technology TECZ Liquidated Sep. 2017 TECL   TECS   [21]
Utilities UTLZ Liquidated Sep. 2017 UTLL   UTLS Registered, never offered [21][26]
BRIC BRIL Liquidated Sep. 2012 BRIS Liquidated Sep. 2012 [23]
MSCI Developed Markets DZK   DPK Liquidated Apr. 2020 [17]
FTSE Europe EURL   EURZ Liquidated Sep. 2014 [20]
MSCI European Financials EUFS Liquidated Sep. 2017 EUFL Liquidated Apr. 2020 [17][21]
MSCI Brazil BRZU 3X until May 2020 BRZU Became 2X in May 2020 BRZS Liquidated Sep. 2014 [15][20]
CSI 300 China A Share CHAD   CHAU   [27]
MSCI India INDL   INDZ Liquidated Sep. 2012 [28]
MSCI Japan JPNL   JPNS Liquidated Sep. 2014 [20][29]
Latin America LBJ   LHB Liquidated Sep. 2012 [23]
MSCI Mexico MEXX     Registered, never offered [30]
Russia RUSL 3X until May 2020 RUSL Became 2X in May 2020 RUSS Liquidated Apr. 2020 [15]
South Korea KORU   KORZ Liquidated Sep. 2014 [20]
7-10 Year Treasury SYTL Liquidated Oct. 2015 SYTS Registered, never offered TYD   TYO   [18][19]
Total Bond Market SAGG Liquidated Apr. 2020   Registered, never offered   Registered, never offered [10][17]

Thematic and other funds edit

Ticker Name Comments References
ESNG Direxion MSCI USA ESG - Leaders vs. Laggards ETF Registered in February 2020 [14]
WFH Direxion Work From Home ETF Registered in April 2020 [31]

References edit

  1. ^ "Potomac Funds Stakes Out New Direxion". Financial Planning. 2006-05-15. Retrieved 2020-05-13.
  2. ^ Anand, Shefali (2008-03-29). "Investors Give Gloom Funds a Bear Hug". The Wall Street Journal. Archived from the original on 2020-05-13. Retrieved 2020-05-13.
  3. ^ "Recently Rebranded Direxion Tweaks Funds". Institutional Investor. 2006-05-24. Retrieved 2020-05-12.
  4. ^ Beerens, Marie (2019-02-01). "Direxion Expands Beyond Leveraged, Inverse ETFs With New Fund Suite". Investor's Business Daily. Retrieved 2020-05-12.
  5. ^ "Leveraged ETFs With 300% Exposures Set To Launch". ETF.com. 2008-11-03. Retrieved 2020-05-13.
  6. ^ Coleman, Murray (2009-04-22). "ProShares Files For 3X Leverage On 94 New ETFs". ETF.com. Retrieved 2020-05-13.
  7. ^ Steward, Martin (September 2009). "Top gear?". IPE Magazine. Retrieved 2020-05-13.
  8. ^ Spence, John (2010-04-13). "Leveraged ETFs Are Under SEC Scrutiny". The Wall Street Journal. Archived from the original on 2020-05-13. Retrieved 2020-05-13.
  9. ^ Wong, Raymund (2009-11-10). "United States: Rebalancing Act: A Primer On Leveraged and Inverse ETFs". Mondaq.com. Retrieved 2020-05-13.
  10. ^ a b c Cumman, Jared (2010-12-14). "Direxion Unveils Tidal Wave Of ETF Proposals". ETF Database. Retrieved 2020-05-12.
  11. ^ "Direxion to expand non-leveraged ETF lineup". Reuters. 2011-11-28. Retrieved 2020-05-13.
  12. ^ Rosenberg, Alex (2016-03-02). "The strange ETF that's doubled this year". CNBC. Retrieved 2020-05-12.
  13. ^ Dierking, David (2020-04-16). "The 4 Most Traded 2x and 3x Gold ETFs". Investopedia. Retrieved 2020-05-12.
  14. ^ a b Temple-West, Patrick (2020-02-06). "Direxion launches high-risk sustainable investment ETF". Financial Times. Archived from the original on 2020-02-06. Retrieved 2020-05-12.
  15. ^ a b c d e f g Ballentine, Claire (2020-03-23). "Direxion Cuts Leverage on 10 Funds to 200%, Closes Eight Others". Bloomberg News. Retrieved 2020-05-12.
  16. ^ "Leveraged ETF Blowups Draw SEC Scrutiny Amid Market Turmoil". Bloomberg Law. 2020-04-04. Retrieved 2020-05-13.
  17. ^ a b c d e f Kiesche, Liz (2020-03-23). "Direxion cuts leverage on 10 funds, closes eight funds". Seeking Alpha. Retrieved 2020-05-12.
  18. ^ a b c . Zacks.com. 2015-10-15. Archived from the original on 2015-10-16. Retrieved 2020-05-13.
  19. ^ a b c Tran, Hung (2014-07-21). "Daily ETF Watch". ETF.com. Retrieved 2020-05-13.
  20. ^ a b c d e "Direxion To Shut Down BARS, The 3x Gold Bear ETF". Seeking Alpha. 2014-12-24. Retrieved 2020-05-12.
  21. ^ a b c d e f g h i j k l Kim, Crystal (2017-09-05). . Barron's. Archived from the original on 2017-09-09. Retrieved 2020-05-13.
  22. ^ "The First Leveraged, Inverse Silver Miner ETFs". Yahoo! Finance. 2016-09-09. Retrieved 2020-05-13.
  23. ^ a b c d e Rowland, Ron (2012-08-20). "Direxion Closing Nine Leveraged And Inverse ETFs". Seeking Alpha. Retrieved 2020-05-13.
  24. ^ Dieterich, Chris (2015-07-01). "Direxion Preps for 2X Cyber Security ETFs". Barron's. Retrieved 2020-05-13.
  25. ^ Watson, George (2017-11-15). "Direxion launches 3x leveraged pharmaceuticals ETF". ETF Strategy. Retrieved 2020-05-13.
  26. ^ "Direxion Files for 16 New Leveraged Bull And Bear ETFs". ETF Daily News. 2010-06-28. Retrieved 2020-05-13.
  27. ^ Fabian, David (2015-04-23). "Direxion Launches New Leveraged China A-Share ETF". Yahoo! Finance. Retrieved 2020-05-15.
  28. ^ Magoon, Christian (2012-08-07). "This Bearish 3X India ETF Will Liquidate In September (INDZ)". ETF Daily News. Retrieved 2020-05-13.
  29. ^ Ludwig, Olly (2013-06-26). "Direxion Debuts Bull/Bear 3X Japan ETFs". ETF.com. Retrieved 2020-05-12.
  30. ^ "Direxion Files For 8 New Triple-Leveraged Global ETFs". Nasdaq.com. 2013-04-10. Retrieved 2020-05-13.
  31. ^ Greifeld, Katherine (2020-04-08). "There's a Work-From-Home ETF Coming and Its Ticker is WFH". Bloomberg Quint. Archived from the original on 2020-05-14. Retrieved 2020-05-14.

External links edit

  • Official website

March 16, 2024
direxion, provider, financial, products, known, leveraged, etfs, founded, alexandria, virginia, company, also, offices, york, city, boston, hong, kong, formerlypotomac, fundscompany, typeprivateindustryfinancefounded1997, years, 1997, alexandria, virginia, uni. Direxion is a provider of financial products known for its leveraged ETFs Founded in Alexandria Virginia the company also has offices in New York City Boston and Hong Kong DirexionFormerlyPotomac FundsCompany typePrivateIndustryFinanceFounded1997 27 years ago 1997 in Alexandria Virginia United StatesProductsLeveraged inverse and thematic exchange traded fundsWebsitedirexion wbr com Contents 1 History 2 List of funds 2 1 Leveraged and inverse ETFs 2 2 Thematic and other funds 3 References 4 External linksHistory editDirexion was founded in 1997 under the name Potomac Funds as a provider of mutual funds The original name referred to the Potomac River near the company s first office in Alexandria Virginia 1 In November 1997 Potomac Funds became the second company to introduce an inverse mutual fund following a similar move by Rydex Investments in 1994 2 The company began using the Direxion name in 2006 The use of the letter X in the new name was intended to draw attention to the leveraged index funds in the company s offerings That year the company also opened an office in the Prudential Tower in Boston Massachusetts 3 Direxion launched its first leveraged ETFs in 2008 4 In November 2008 the company was the first to offer ETFs with 3X leverage a move that was copied some months later by its competitors ProShares and Rydex Investments The move made it one of the fastest growing ETF companies with its sixteen 3X ETFs reaching a total of 3 4 billion in assets by April 2009 5 6 The move towards higher leverage offerings by the three companies provoked scrutiny from the U S Securities and Exchange Commission and the Massachusetts Secretary of the Commonwealth and a number of broker dealers stopped selling leveraged ETFs The criticisms centered around perceived tracking error the ETFs were designed to achieve the stated multiple of the return on the underlying on a daily basis only with the cost of the daily rebalancing passed on to investors in the form of higher expense ratios but commentators suggested that some investors even institutional investors had mistakenly tried to use the inverse products as longer term hedges against their underlyings 7 8 9 In December 2010 Direxion added 24 ETFs to its range of offerings including some non leveraged funds and continued to expand its offering of non leveraged funds in 2011 10 11 The company s gold miner bull and bear ETFs are among the most traded gold related leveraged ETFs 12 13 In February 2020 the company announced the launch of its first leveraged environmental social and corporate governance fund offering 150 long exposure and 50 short exposure respectively to the best and worst scoring companies in the MSCI USA ESG index with a quarterly rebalance 14 In March 2020 amidst the 2020 stock market crash Direxion announced that it would reduce the leverage of ten of its ETFs from 3x to 2x and close eight others 15 This was part of a broader trend among providers of leveraged ETFs during the first quarter of 2020 nevertheless Direxion saw inflows of nearly 4 billion during March 2020 alone 16 List of funds editThis list is incomplete you can help by adding missing items May 2020 Leveraged and inverse ETFs edit Direxion Daily Bear 1X Shares Bull 2X Shares Bear 2X Shares Bull 3X Shares Bear 3X Shares ReferencesTicker Comments Ticker Comments Ticker Comments Ticker Comments Ticker CommentsS amp P 500 SPDN SPUU SPXL SPXS Mid Cap MDLL Liquidated Oct 2015 MDSS Registered never offered MIDU MIDZ Liquidated Apr 2020 17 18 19 Small Cap Registered never offered SMLL SMSS Registered never offered TNA TNZ 10 19 Regional Banks DPST WDRW Liquidated Apr 2020 17 Gold BAR BARS Liquidated Dec 2014 20 Gold Miners Index MELT Liquidated Sep 2017 NUGT 3X until May 2020 DUST 3X until May 2020 NUGT Became 2X in May 2020 DUST Became 2X in May 2020 21 15 Junior Gold Miners Index JNUG 3X until May 2020 JDST 3X until May 2020 JNUG Became 2X in May 2020 JDST Became 2X in May 2020 15 Silver Miners Index SHNY Liquidated Sep 2018 DULL Liquidated Sep 2017 21 22 Energy ERYY Liquidated Sep 2017 ERX 3X until May 2020 ERY 3X until May 2020 ERX Became 2X in May 2020 ERY Became 2X in May 2020 21 15 S amp P Oil amp Gas Exp amp Prod GUSH 3X until May 2020 DRIP 3X until May 2020 GUSH Became 2X in May 2020 DRIP Became 2X in May 2020 15 Natural Gas Related GASL Liquidated Apr 2020 GASX Liquidated Apr 2020 17 Agribusiness COWL Liquidated Sep 2012 COWS Liquidated Sep 2012 23 Basic Materials MATL Liquidated Oct 2015 MATS Liquidated Sep 2012 18 23 S amp P Biotech LABS Liquidated Sep 2017 LABU LABD 21 Consumer Staples SPLZ Liquidated Sep 2017 NEED LACK 21 Cyber Security amp IT HAKK Liquidated Sept 2017 HAKD Liquidated Apr 2017 21 24 Financials FAZZ Liquidated Sep 2017 FAS FAZ 21 Healthcare CURE SICK Liquidated Sep 2017 21 Homebuilders amp Supplies NAIL CLAW Liquidated Sep 2017 21 Pharmaceutical amp Medical PILL Liquidated Apr 2017 PILS Liquidated Apr 2017 PILL Recycled ticker Registered never offered 25 Retail RETL RETS Liquidated Sep 2012 23 Semiconductors SOXL SOXS citation needed Technology TECZ Liquidated Sep 2017 TECL TECS 21 Utilities UTLZ Liquidated Sep 2017 UTLL UTLS Registered never offered 21 26 BRIC BRIL Liquidated Sep 2012 BRIS Liquidated Sep 2012 23 MSCI Developed Markets DZK DPK Liquidated Apr 2020 17 FTSE Europe EURL EURZ Liquidated Sep 2014 20 MSCI European Financials EUFS Liquidated Sep 2017 EUFL Liquidated Apr 2020 17 21 MSCI Brazil BRZU 3X until May 2020 BRZU Became 2X in May 2020 BRZS Liquidated Sep 2014 15 20 CSI 300 China A Share CHAD CHAU 27 MSCI India INDL INDZ Liquidated Sep 2012 28 MSCI Japan JPNL JPNS Liquidated Sep 2014 20 29 Latin America LBJ LHB Liquidated Sep 2012 23 MSCI Mexico MEXX Registered never offered 30 Russia RUSL 3X until May 2020 RUSL Became 2X in May 2020 RUSS Liquidated Apr 2020 15 South Korea KORU KORZ Liquidated Sep 2014 20 7 10 Year Treasury SYTL Liquidated Oct 2015 SYTS Registered never offered TYD TYO 18 19 Total Bond Market SAGG Liquidated Apr 2020 Registered never offered Registered never offered 10 17 Thematic and other funds edit Ticker Name Comments ReferencesESNG Direxion MSCI USA ESG Leaders vs Laggards ETF Registered in February 2020 14 WFH Direxion Work From Home ETF Registered in April 2020 31 References edit Potomac Funds Stakes Out New Direxion Financial Planning 2006 05 15 Retrieved 2020 05 13 Anand Shefali 2008 03 29 Investors Give Gloom Funds a Bear Hug The Wall Street Journal Archived from the original on 2020 05 13 Retrieved 2020 05 13 Recently Rebranded Direxion Tweaks Funds Institutional Investor 2006 05 24 Retrieved 2020 05 12 Beerens Marie 2019 02 01 Direxion Expands Beyond Leveraged Inverse ETFs With New Fund Suite Investor s Business Daily Retrieved 2020 05 12 Leveraged ETFs With 300 Exposures Set To Launch ETF com 2008 11 03 Retrieved 2020 05 13 Coleman Murray 2009 04 22 ProShares Files For 3X Leverage On 94 New ETFs ETF com Retrieved 2020 05 13 Steward Martin September 2009 Top gear IPE Magazine Retrieved 2020 05 13 Spence John 2010 04 13 Leveraged ETFs Are Under SEC Scrutiny The Wall Street Journal Archived from the original on 2020 05 13 Retrieved 2020 05 13 Wong Raymund 2009 11 10 United States Rebalancing Act A Primer On Leveraged and Inverse ETFs Mondaq com Retrieved 2020 05 13 a b c Cumman Jared 2010 12 14 Direxion Unveils Tidal Wave Of ETF Proposals ETF Database Retrieved 2020 05 12 Direxion to expand non leveraged ETF lineup Reuters 2011 11 28 Retrieved 2020 05 13 Rosenberg Alex 2016 03 02 The strange ETF that s doubled this year CNBC Retrieved 2020 05 12 Dierking David 2020 04 16 The 4 Most Traded 2x and 3x Gold ETFs Investopedia Retrieved 2020 05 12 a b Temple West Patrick 2020 02 06 Direxion launches high risk sustainable investment ETF Financial Times Archived from the original on 2020 02 06 Retrieved 2020 05 12 a b c d e f g Ballentine Claire 2020 03 23 Direxion Cuts Leverage on 10 Funds to 200 Closes Eight Others Bloomberg News Retrieved 2020 05 12 Leveraged ETF Blowups Draw SEC Scrutiny Amid Market Turmoil Bloomberg Law 2020 04 04 Retrieved 2020 05 13 a b c d e f Kiesche Liz 2020 03 23 Direxion cuts leverage on 10 funds closes eight funds Seeking Alpha Retrieved 2020 05 12 a b c Direxion To Close Down 3 Leveraged ETFs Zacks com 2015 10 15 Archived from the original on 2015 10 16 Retrieved 2020 05 13 a b c Tran Hung 2014 07 21 Daily ETF Watch ETF com Retrieved 2020 05 13 a b c d e Direxion To Shut Down BARS The 3x Gold Bear ETF Seeking Alpha 2014 12 24 Retrieved 2020 05 12 a b c d e f g h i j k l Kim Crystal 2017 09 05 12 Inverse and Leveraged ETFs to Bite the Dust Barron s Archived from the original on 2017 09 09 Retrieved 2020 05 13 The First Leveraged Inverse Silver Miner ETFs Yahoo Finance 2016 09 09 Retrieved 2020 05 13 a b c d e Rowland Ron 2012 08 20 Direxion Closing Nine Leveraged And Inverse ETFs Seeking Alpha Retrieved 2020 05 13 Dieterich Chris 2015 07 01 Direxion Preps for 2X Cyber Security ETFs Barron s Retrieved 2020 05 13 Watson George 2017 11 15 Direxion launches 3x leveraged pharmaceuticals ETF ETF Strategy Retrieved 2020 05 13 Direxion Files for 16 New Leveraged Bull And Bear ETFs ETF Daily News 2010 06 28 Retrieved 2020 05 13 Fabian David 2015 04 23 Direxion Launches New Leveraged China A Share ETF Yahoo Finance Retrieved 2020 05 15 Magoon Christian 2012 08 07 This Bearish 3X India ETF Will Liquidate In September INDZ ETF Daily News Retrieved 2020 05 13 Ludwig Olly 2013 06 26 Direxion Debuts Bull Bear 3X Japan ETFs ETF com Retrieved 2020 05 12 Direxion Files For 8 New Triple Leveraged Global ETFs Nasdaq com 2013 04 10 Retrieved 2020 05 13 Greifeld Katherine 2020 04 08 There s a Work From Home ETF Coming and Its Ticker is WFH Bloomberg Quint Archived from the original on 2020 05 14 Retrieved 2020 05 14 External links editOfficial website Retrieved from https en wikipedia org w index php title Direxion amp oldid 1201614533, wikipedia, wiki, book, books, library,

article

, read, download, free, free download, mp3, video, mp4, 3gp, jpg, jpeg, gif, png, picture, music, song, movie, book, game, games.