Direxion, one of the leading issuers of leveraged ETFs, announced reverse splits for six of its 3x bear funds. Five of the leveraged products will undergo 1-for-5 reverse splits for shareholders of record after the close of the markets on Wednesday, Feb. 23, 2011:
- Daily Financial Bear 3x Shares (FAZ)
- Daily Large Cap Bear 3x Shares (BGZ)
- Daily Mid Cap Bear 3x Shares (MWN)
- Daily Developed Markets Bear 3x Shares (DPK)
- Daily Semiconductor Bear 3x Shares (SOXS)
Additionally, the Daily Small Cap Bear 3x Shares (TZA) will undergo a reverse 1-for-3 split. Each of the six ETFs will be assigned a new CUSIP following the reverse splits.
Disclosure: No positions at time of writing.
As we head towards the finish line of 2010, the ETF industry finds itself in an interesting position. Regulatory scrutiny has intensified, leading to significant uncertainty over the future of certain product development initiatives. Active ETFs continue to generate hype, but little in the way of assets. Investors have fully embraced bond ETFs, which now [...]
Investors had expected this week to be all about earnings reports. And for the first four days it was, with several bellwether firms reporting first quarter results that ranged from disappointing (Google) to impressive (Intel). But the earnings season successes and failures were overshadowed on Friday morning when the Securities & Exchange Commission charged Goldman [...]
Since the global equity markets bottomed out in March 2009, the financial sector has been one of the top-performing corners of the U.S. economy. After being hammered as fears of a financial meltdown spread through Wall Street, big banks have recovered to strengthen their balance sheets, begin reporting profits once again, and even pay back [...]
After a few speed bumps early in 2010, ETFs are back on track and traveling full steam ahead. In the first three months of 2010, nearly 60 new ETFs have been launched, which is already equivalent to nearly half funds to hit the market over the course of 2009. The recent SEC decision to halt approval on products using derivatives may slow this pace a [...]
Direxion, the pioneer of 3x and -3x daily leveraged ETFs in the U.S., is going international. Beginning on March 31, six Direxion Shares Daily ETFs will be listed on the Amsterdam market of NYSE Euronext, significantly expanding the base of investors with access to these products. The Direxion ETFs available on this market include daily [...]
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One of the best sources of information on the state of the ETF industry is the monthly data download from the National Stock Exchange. While the most interesting numbers are generally the fund flows into exchange-traded products and the issuer “totem pole,” the release has some pretty thorough statistics on notional and share trading volumes. [...]
Don Dion, who covers ETFs for TheStreet.com and runs Dion Money Management, recently wrote a three part series highlighting the “10 Most Dangerous ETFs”. Dion notes that as the ETF industry continues to expand beyond “plain vanilla” funds, investors are introduced to products that can face significant liquidity issues, be subject to increased regulatory scrutiny, [...]
In a step apparently intended to calm some of the fury surrounding the sale and use of leveraged ETFs, the Financial Industry Regulatory Authority (FINRA) announced Tuesday that it will raise margin requirements for leveraged ETFs beginning December 1. Regulatory Notice 09-53 states that “in view of the increased volatility of leveraged ETFs compared to [...]
The old saying “any publicity is good publicity” certainly seems to ring true in the ETF industry. Over the last several months, leveraged ETFs have been the subject of intense scrutiny, first from individual investors and analysts, and more recently from regulatory agencies such as FINRA. Despite allegations that these funds are dishonest products that [...]
