Direxion, begun trading two new leveraged ETFs, the Direxion Daily European Financials Bull 2X Shares (NYSE Arca: EUFL) and the Direxion Daily Gold Miners Index Bear 1X Shares (NYSE Arca: METL), on Wednesday, July 27, 2016. Here is a synopsis of the new ETFs:
1.
FUND INFORMATION
| Symbol: EUFL | Exchange: NYSE ARCA |
| Name: Direxion Daily European Financials Bull 2X Shares | Net Expense Ratio: 0.80% |
FUND OBJECTIVE:
The Direxion Daily European Financials Bull 2X Shares seeks daily investment results, before fees and expenses, of 200% of the performance of the MSCI Europe Financials Index.
The Fund, under normal circumstances, creates long positions by investing at least 80% of its assets in the securities that comprise the MSCI Europe Financials Index and/or financial instruments that provide leveraged and unleveraged exposure to the Index. These financial instruments include: swap agreements; futures contracts; options; reverse repurchase agreements; ETFs and other financial instruments.
REFERENCE INDEX:
The MSCI Europe Financials Index is provided by MSCI Inc. (Index Provider). The Index is a free float-adjusted, market capitalization weighted index and represents securities of large capitalization and mid-capitalization companies across developed market countries in Europe. All component securities in the Index are classified in the financials sector per the Global Industry Classification Standard (GICS).
As of March 31, 2016, the Index consisted of the following 15 developed market countries: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the UK.
As of March 31, 2016 the Index consisted of 98 constituents with an average market capitalization of approximately $16.04 billion and market capitalizations ranging from $1.6 billion to $122.1 billion. As of March 31, 2016, components of the Index were concentrated in the financials sector.
Index Top Holdings (06/30/16):
| HSBC Holdings PLC | 8.91% |
| Allianz SE | 4.47% |
| Banco Santander SA | 4.23% |
| BNP Paribas SA | 3.50% |
| UBS Group AG | 3.38% |
| Lloyds Banking Group PLC | 3.31% |
| Prudential PLC | 3.13% |
| ING Groep NV | 2.95% |
| AXA SA | 2.70% |
| Banco Bilbao Vizcaya Argentari | 2.61% |
Top Index Country Weightings (06/30/16):
| Britain | 30.92% |
| France | 13.06% |
| Switzerland | 12.09% |
| Germany | 11.84% |
| Spain | 8.86% |
| Sweden | 7.00% |
| Italy | 5.05% |
| Netherlands | 4.33% |
| Belgium | 1.83% |
| Denmark | 1.45% |
Useful Links:
EUFL Home Page
Category: Equities> Regions> Europe> Broad Europe> European Sectors
2.
FUND INFORMATION
| Symbol: MELT | Exchange: NYSE ARCA |
| Name: Direxion Daily Gold Miners Index Bear 1X Shares | Net Expense Ratio: 0.45% |
FUND OBJECTIVE:
The Direxion Daily Gold Miners Index Bear 1X Shares seeks daily investment results, before fees and expenses, of 100% of the inverse (or opposite) of the performance of the NYSE Arca Gold Miners Index.
The Fund, under normal circumstances, creates short positions by investing at least 80% of its assets in: swap agreements; futures contracts; options; reverse repurchase agreements; ETFs; and other financial instruments that, in combination, provide inverse exposure to the NYSE Arca Gold Miners Index.
REFERENCE INDEX:
The NYSE Arca Gold Miners Index is a modified market capitalization weighted index comprised of publicly traded companies that operate globally in both developed and emerging markets, and are involved primarily in the mining for gold and, to a lesser extent, are also involved in mining for silver. The Index’s average market capitalization was $2.92 billion and its median market capitalization was $1.56 billion as of December 31, 2015.
As of December 31, 2015, the components of the Index had market capitalizations ranging from $520.2 million to $10.1 billion. Components of the Index included the gold mining industry as of December 31, 2015.
Index Top Holdings (06/30/16):
| Barrick Gold Corp | 11.16% |
| Newmont Mining Corp | 9.31% |
| Goldcorp Inc | 7.14% |
| Franco-Nevada Corp | 6.05% |
| Newcrest Mining Ltd | 5.95% |
| Agnico Eagle Mines Ltd | 5.32% |
| Randgold Resources Ltd | 4.95% |
| Silver Wheaton Corp | 4.64% |
| AngloGold Ashanti Ltd | 3.55% |
| Kinross Gold Corp | 2.92% |
Index Country Weightings (06/30/16):
| Canada | 55.39% |
| United States | 15.78% |
| Australia | 11.51% |
| South Africa | 7.75% |
| Jersey | 5.93% |
| Peru | 1.58% |
| China | 1.38% |
| Monaco | 0.68% |
Useful Links:
MELT Home Page
Category: Commodities> Precious Metals> Gold> Gold Miners
ETFtrack comment:
Here is a comment from Sylvia Jablonski, Managing Director at Direxion:
“We’ve seen recent instability in European markets, with the post-Brexit effect yet to subside as political and economic uncertainties remain. The launch of the European Financials leveraged ETF is timely, as market reaction to the EU situation presents the chance for bullish traders to magnify their short-term perspective.
Our new Gold Miners bear ETF will complement the existing suite of ETFs tracking that space, to give traders another option for taking advantage of short-term opportunities.”