On Wednesday, Direxion further expanded its library of leveraged and inverse ETFs with the launch of four new funds. Each of these new funds provides either leveraged or inverse results to the daily performance of one of two companies.
Two of today’s releases focus on the daily performance of Shopify Inc. (SHOP). The Direxion Daily SHOP Bull 2X ETF (SHPU) looks to provide 200% of the daily performance of Shopify’s Class A Shares. Meanwhile, the Direxion Daily SHOP Bear 1X ETF (SHPD) looks to provide -100% of Shopify’s daily results.
The other two new Direxion funds look at a vastly different investment sector; namely, the new funds focus on the daily performance of Lockheed Martin Corporation (LMT). First up is the Direxion Daily LMT Bull 2X ETF (LMTL), which looks to generate results that are equivalent to 200% of Lockheed Martin’s daily results. The inverse alternative, the Direxion LMT Bear 1X ETF (LMTS), seeks to generate -100% of Lockheed Martin’s daily performance.
Attractive Daily Results
“These two companies sit on opposite ends of the tactical spectrum – Shopify represents high-growth, high-volatility e-commerce exposure, while Lockheed Martin is a defense sector anchor tied to long-term government spending and global events,” said Mo Sparks, chief product officer at Direxion. “Whether traders are reacting to earnings, geopolitical headlines, or sector rotations, these new ETFs are the first to offer a powerful way to express conviction toward each with tactical precision.”
While Shopify and Lockheed Martin certainly occupy two different equity sectors, both companies remain highly watched stocks among many market experts. For example, Shopify recently caught significant market attention after its earnings roundly outpaced analyst expectations. As such, these funds can help investors make short-term bets on future price movements for either company.
That said, funds that seek daily results tend to inherently carry a degree of risk. Direxion often notes these funds may be best employed by experienced traders with a thorough understanding of how leveraged and inverse ETFs operate.
Direxion currently has well over 110 ETFs listed in the United States. As a whole, these funds represent more than $51 billion in assets under management.
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