Sage Quant Files For Dividend ETF, Direxion Fills Pipeline

by on August 17, 2012 | ETFs Mentioned:

Low trading volumes have allowed the bulls to coast higher all week, while a string of better-than-expected data reports on the homefront has also helped to restore investors’ confidence. The product development front continues to heat up despite the summer slowdown; however, EG Shares rolled out EMDD, which focus on consumer-centric stocks in emerging markets, and BBRC, which goes beyond the BRIC bloc.

First Trust also took steps to beef up its lineup with the debut of the NASDAQ Technology Dividend Index Fund (TDIV) as well as the Multi-Asset Diversified Income Index Fund (MDIV), serving up innovating offerings for yield-hungry investors [see also 3 Commodities To Bet With Buffett].

Connecticut-based Sage Quant Management is planning to enter the industry as it recently made its first regulatory filing [see SEC Filing]:

  • Sage Low Volatility Dividend Fund: The underlying index for this ETF is designed to deliver exposure to approximately 150 dividend-paying, large and mid-cap size equities with low expected future volatility as determined by the fund’s proprietary methodology. The ETF will determine expected future volatility based on several criteria, including price of the security and interest rates, as well as option prices [see also Monthly Dividend ETFdb Portfolio].
Direxion, well-known among active traders, is planning to beef up its already extensive lineup of leveraged and inverse ETFs. The firm recently filed for two bull-bear pairs that tap into the Dow Jones Industrial Average, as well as a pair of European equity-focused offerings [see also 17 ETFs For Day Traders]:
  • Direxion Daily Dow 30 Bull 2x Shares
  • Direxion Daily Dow 30 Bear 2x Shares
  • Direxion Daily Dow 30 Bull 3x Shares
  • Direxion Daily Dow 30 Bear 2x Shares
  • Direxion Daily European Equity Bull 3x Shares
  • Direxion Daily European Equity Bear 3x Shares
Each of the proposed ETFs will rebalance on a daily basis and charge 0.75% in annual expenses. This release would mark another stride towards cost-efficiency as the proposed Direxion ETFs looks to compete with ProShares offerings, which charge 0.95% for comparable exposure.

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Disclosure: No positions at time of writing.