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Six Direxion ETFs To Undergo Reverse Splits

Michael Johnston — Wed, 02 Feb 2011 18:00:22 +0000

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. Click here to read the original article on ETFdb.com.Related Posts:March ETF Roundup: Launches, Filings, and ClosuresHow To Fix the Leveraged ETF MessResponding To Calls For ETF RegulationDirexion Brings 3x Leveraged ETFs To EuropeProShares Plans 300% Leveraged [...]

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Three Leveraged ETFs Up 50% During The Correction

Eric Dutram — Fri, 21 May 2010 19:08:34 +0000

The last month has been a wild one on Wall Street and on stock exchanges around the world. Europe’s fiscal woes have rippled throughout global equity markets, as concerns over the impact of a “euro drag” on global growth have intensified. The recent “flash crash” shook confidence in major exchanges, while plummeting commodity prices have hammered resource-intensive economies. While most assets have plunged, some have benefited from the turmoil. Gold and the U.S. dollar, two traditional safe havens, have both soared. Volatility futures, including the volatility ETNs from iPath have skyrocketed. And of course inverse equity ETFs have generally performed very well. Leveraged ETFs have been the subject of significant criticisms and scrutiny over the last year (much of it unfair). But the last months serves as an excellent illustration of why these funds are so popular with investors. Many of those who either hedged their exposure or bet on [...]

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ProShares Plans 300% Leveraged ETFs

Michael Johnston — Mon, 08 Feb 2010 22:13:24 +0000

ProShares, the issuer responsible for pioneering leveraged and inverse ETFs, has filed prospectuses for 16 new funds. Expansion is nothing new for ProShares–the company has launched a handful of new ETFs over the last year–but the filing was interesting because it detailed plans for 300% leveraged ETFs. ProShares’ current product line, which consists of more than 90 funds, includes only two ETFs with 300% leverage, the UltraPro S&P 500 (UPRO) and UltraPro Short S&P 500 (SPXU). Historically, ProShares has focused on inverse, 200% leveraged and 200% inverse leveraged ETFs, although the issuer expanded its offerings outside this area last year when in introduced the first 130/30 ETF. Several of the proposed funds, which are based on domestic and international equities and fixed income ETFs, would compete directly with existing products from Direxion. ProShares’ Proposed 3x Leveraged ETFs Style 300% ETF -300% ETF NASDAQ UltraPro QQQ UltraPro Short QQQ DJIA UltraPro [...]

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Responding To Calls For ETF Regulation

Michael Johnston — Tue, 16 Jun 2009 05:30:35 +0000

In the week during which the Obama administration will unveil details surrounding its plan to revamp the regulation of the U.S. financial sector, calls for increased oversight of the ETF industry are picking up steam as well. Scott Burns, director of ETF Analysis at Morningstar, recently laid out a case for increased regulatory requirements for ETFs that use derivatives to achieve their objectives. But I’m not quite convinced that more regulation is the answer. In The Beginning… The first ETFs were equivalent to “plain vanilla” financial instruments, tracking well-known equity and fixed income indexes by duplicating their underlying holdings. Even today, the simplest ETFs remain among the most popular – the indexes tracked by the largest ETFs by market capitalization should be familiar to almost all investors. But as the ETF structure became more familiar and investors became more educated on the advantages of ETFs relative to traditional mutual funds, the [...]

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