Direxion Investments offer short-term traders a plethora of options when it comes to the markets, ranging from commodities to bonds and whether they want to go long or short using exchange-traded funds (ETFs). However, there are also options for investors with long-term horizons—specifically, three new ETFs.
First up is the Direxion Shares ETF Trust – Direxion U.S. Hyper Growth ETF (HIPR). This fund offers exposure to US stocks that have exhibited strong historical growth rates, and are positioned to potentially do so in the future.
The Direxion High Growth ETF looks for consistent and sustainable growth by integrating historical sales growth with estimated earnings and cash flow growth. At the same time, the fund tilts toward companies with positive momentum and high-quality characteristics and aims to neutralize exposure to those that may be overvalued and volatile.
“What we do for this particular fund is we combine a screen of companies that have grown sales in the past, have high expected earnings growth, but also — maybe most importantly — high expected cash flow growth,” said David Mazza, head of product at Direxion, during an episode of CNBC’s “ETF Edge “We also look at a company’s balance sheet to ensure that they’re not over-leveraging or taking on significant debts to pay for that growth. And then lastly, taking a look at stocks that have had positive momentum.”
“Our research shows that this combination — so, top-line (and) bottom-line growth, momentum, and high quality — leads you to a universe of stocks that have shown great growth in the past, but really (have) that potential for growth going forward,” Mazza added.
In addition, Direxion also offers two more funds that cater to long-term buy-and-hold investors—one that caters to the new normal of working remotely and the other to downtrodden companies with potential upside.
- Direxion Work From Home ETF (WFH): invests in stocks of companies operating across work from home includes remote communications, cybersecurity, project and document management, and cloud technologies sectors. It invests in growth and value stocks of companies across diversified market capitalization.
- Direxion Shares ETF Trust – Direxion U.S. Fallen Knives ETF (NIFE): aims to deliver a simple, systematic approach to capturing stocks that have fallen significantly, but with the financial health to support future outperformance. The idea of falling – or fallen – knives is a commonly understood one, and the rules-based approach allows for a framework to capture the most attractive opportunities. The fund may provide investors with a distinctive approach to U.S. equities with a distinct exposure profile.