On Thursday, Direxion expanded its single-stock leveraged and inverse ETF selection with new funds that focus on Netflix and Taiwan Semiconductor Manufacturing Company Limited (TSMC).
Staying Engaged With Streaming
Looking at Netflix, the Direxion Daily Direxion Daily NFLX Bull 2X Shares (NFXL ) aims to provide 200% of the daily performance of Netflix’s common shares. Meanwhile, the Direxion Daily NFLX Bear 1X Shares (NFXS ) seeks to offer inverse exposure to Netflix’s stock performance.
“Netflix is very popular with the trading community, and I think it just makes sense for us to be engaged where there’s a lot of trading interest,” noted Ed Egilinsky, managing director at Direxion. “These are one of the stocks that there’s definitely trading interest in.”
A Short-Term Semiconductor Strategy
The other new Direxion funds provide leveraged and inverse exposure to the share price of TSMC. These funds are the Direxion Daily TSM Bull 2X Shares (TSMX ) and the Direxion Daily TSM Bear 1X Shares (TSMZ ).
“Taiwan Semi is one of the bigger semiconductor companies in terms of market cap. It’s also a bellwether for the Taiwan stock market,” Egilinsky added. “This continues the theme of semis, which have been very popular in terms of trading.”
All four of these new Direxion funds have a net expense ratio of 0.97%. The Netflix and TSMC funds intend to pursue their strategy accordingly regardless of how the stock is performing.
Netflix and TSMC remain stocks that are highly desired and traded by the greater investment community. As such, these funds can be used by investors to make short-term calls on potential stock movement. However, Direxion advises that these funds inherently possess risk, given the lack of diversification and daily investment goals.
Direxion has immense experience in piloting its suite of leveraged & inverse funds. One of the largest Direxion funds, the Direxion Daily Semiconductor Bull 3x Shares (SOXL ), has over $12 billion in assets under management.
For more news, information, and analysis, visit the Leveraged & Inverse Channel.
