In a market brimming with uncertainty, investors are seeking ways to diversify from their core equities portfolio. One of the ways is seeking international opportunities, highlighting the benefits of international diversification. That could help push certain leveraged ETFs from Direxion higher.
“In 2025, risk management in the form of portfolio diversification is becoming a central theme as investors look to derisk the weight of U.S. equities and overweight less-correlated markets,” noted the CME Group in a report of investment trends to watch this year.
As mentioned, one of those trends is international equities. With different countries being in various stages of their economic cycles, this poses an opportunity for long- and short-term investors.
“In 2025, investors are looking to international equity markets for diversification of U.S. equities,” CME Group added.
For short-term traders, one option is to look toward upside in Europe, or more specifically, the Direxion Daily FTSE Europe Bull 3X ETF (EURL ). The fund seeks daily investment results that are equal to 300% of the daily performance of the FTSE Developed Europe All Cap Index.
Alternatively, traders who want to assume more risk can look to emerging markets, or the Direxion Daily MSCI Emerging Markets Bull 3X Shares (EDC ), in particular. China and India present compelling options as the biggest countries in emerging markets. That opens the door for plays in the Direxion Daily FTSE China Bull 3X Shares (YINN ) as well as the Direxion Daily MSCI India Bull 2x ETF (INDL ).
China has been working to get out of its economic slump. So traders may not want to consider exposure in China equities just yet until an ideal entry point presents itself. Alternatively, traders can also get nuanced exposure to emerging marketings without China via the Direxion Daily MSCI Emerging Markets ex China Bull 2X Shares (XXCH ).
Other International Options
Direxion also offers other country-specific leveraged ETFs, such as highlighting Korea, Mexico, and Brazil. These three levels of exposure are available with the Direxion Daily South Korea Bull 3X Shares (KORU ), the Direxion Daily MSCI Mexico Bull 3X Shares (MEXX ), and the Direxion Daily MSCI Brazil Bull 2X ETF (BRZU ).
All of the aforementioned funds present interesting options as geopolitical factors like trade wars continue to be a factor. While U.S. equities have been in pole position for some time, international equities have started to gain ground. Whether that trend persists remains to be seen, but it gives short-term traders options to potentially profit.
“Investing overseas is part of a diversified portfolio, and we’re seeing that play out in the short term, but I find it hard to imagine a situation in which international equities are up and U.S. domestic stocks are down for an extended period of time,” said Gina Bolvin, president of Bolvin Wealth Management.
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