Direxion, begun trading two new Bear US Consumer Staples, Utilities ETFs, the Direxion Daily Consumer Staples Bear 1x Shares (Nyse Arca: SPLZ) and the
Direxion Daily Utilities Bear 1x Shares (Nyse Arca: UTLZ), on Thursday, January 05, 2017. Here is a synopsis of the new ETFs:
1.
FUND INFORMATION:
| Symbol: SPLZ | Exchange: NYSE ARCA |
| Name: Direxion Daily Consumer Staples Bear 1x Shares | Net Expense Ratio: 0.45% |
FUND OBJECTIVE:
The Direxion Daily Consumer Staples Bear 1x Shares seeks daily investment results, before fees and expenses, of 100% of the inverse (or opposite) of the performance of the Consumer Staples Select Sector Index.
REFERENCE INDEX:
The Consumer Staples Select Sector Index is provided by S&P Dow Jones Indices (Index Provider) and includes domestic companies from the consumer staples sector which includes the following industries: food & staples retailing; household products; food products; beverages; tobacco; and personal products. The Index is 1 of 11 Select Sector Indexes developed and maintained in accordance with the following criteria:
(1) each of the stocks in the Index is also a constituent company of the S&P 500 Index;
(2) each constituent in the S&P 500 Index is assigned to at least one of the Select Sector Indexes; and
(3) the Index is calculated by the Index Provider using a modified “market capitalization” methodology, which is a hybrid between equal weighting and conventional capitalization weighting with the weighting capped for the largest stocks included in the Index. This design ensures that each of the component stocks within a Select Sector Index is represented in a proportion consistent with its percentage with respect to the total market capitalization of such Select Sector Index. As of February 29, 2016, the Index was comprised of 38 constituents.
Index Top Ten Holdings (12/30/16):
| The Procter & Gamble Co | 12.39% |
| The Coca-Cola Co | 8.87% |
| Philip Morris International Inc | 7.82% |
| Altria Group Inc | 6.57% |
| Wal-Mart Stores Inc | 5.73% |
| CVS Health Corp | 4.77% |
| PepsiCo Inc | 4.74% |
| Walgreens Boots Alliance Inc | 4.16% |
| Costco Wholesale Corp | 4.02% |
| Mondelez International Inc | 3.56% |
Index Sector Weightings (12/30/16):
| Food & Staples Retailing | 23.00% |
| Beverages | 19.88% |
| Household Products | 19.70% |
| Food Products | 18.64% |
| Tobacco | 17.24% |
| Personal Products | 1.54% |
Useful Links:
SLPZ Home Page
Category: Equities> Regions> USA> US Sectors/Industries> US Consumer
2.
FUND INFORMATION:
| Symbol: UTLZ | Exchange: NYSE ARCA |
| Name: Direxion Daily Utilities Bear 1x Shares | Net Expense Ratio: 0.45% |
FUND OBJECTIVE:
The Direxion Daily Utilities Bear 1x Shares seeks daily investment results, before fees and expenses, of 100% of the inverse (or opposite) of the performance of the Utilities Select Sector Index.
REFERENCE INDEX:
The Utilities Select Sector Index is provided by S&P Dow Jones Indices (Index Provider) and includes domestic (US) companies from the utilities sector which includes the following industries: electric utilities; multi-utilities; independent power producers & energy trades; and gas utilities. The Index is 1 of 11 Select Sector Indexes developed and maintained in accordance with the following criteria:
(1) each of the stocks in the Index is also a constituent company of the S&P 500 Index;
(2) each constituent in the S&P 500 Index is assigned to at least one of the Select Sector Indexes; and
(3) the Index is calculated by the Index Provider using a modified “market capitalization” methodology, which is a hybrid between equal weighting and conventional capitalization weighting with the weighting capped for the largest stocks included in the Index. This design ensures that each of the component stocks within a Select Sector Index is represented in a proportion consistent with its percentage with respect to the total market capitalization of such Select Sector Index.
As of February 29, 2016, the Index was comprised of 29 constituents.
Index Top Ten Holdings (12/30/16):
| NextEra Energy Inc | 9.16% |
| Duke Energy Corp | 8.10% |
| The Southern Co | 7.91% |
| Dominion Resources Inc/VA | 7.88% |
| Exelon Corp | 5.38% |
| American Electric Power Co Inc | 5.10% |
| PG&E Corp | 5.07% |
| Sempra Energy | 4.15% |
| Edison International | 3.87% |
| PPL Corp | 3.81% |
Index Sector Weightings (12/30/16):
| Electric Utilities | 61.91% |
| Multi-Utilities | 34.09% |
| Water Utilities | 2.11% |
| Independent Power and Renewable | 1.89% |
Useful Links:
UTLZ Home Page
Category: Equities> Regions> USA> US Sectors/Industries> US Utilities
ETFtrack comment:
Here is a comment from Paul Brigandi, Managing Director at Direxion:
“The Federal Reserve recently raised interest rates and signaled up to three more increases in 2017 due to a strengthening economy, increasing inflation and a multi-year low unemployment rate. Against that backdrop, investors are concerned a rising-rate environment may have a negative impact on their portfolios. The launch of SPLZ and UTLZ is timely, as they both provide inverse exposure to two sectors having historically high sensitivity to rising rates.”