what are direxion funds

What is Direxion leveraged ETFs? All you need to know about

Potomac Funds, a mutual fund provider, was created by Direxion in 1997. The name came from the Potomac River, close to the company’s first location in Alexandria, Virginia.  

Potomac Funds was the second company to offer an inverse mutual fund in November 1997, after Rydex Investments did so in 1994.

In 2006, the corporation adopted the Direxion moniker.  

The use of the word “X” in the new name was to call attention to the company’s leveraged index products. The business was the first to offer 3X leveraged ETFs in November 2008. 

The company has Assets Under Management of approximately $ 30.8 billion as of 31 December 2021. Direxion provides investors with products like ETFs and mutual funds.  

The company provides strategic and thematic ETFs and advanced ETFs like leveraged ETFs and inverse ETFs. Direxion offers non-traditional investments to accommodate various market cycles. 

For financial advisors, individual investors, institutions, and active traders, Direxion specializes in providing solutions that deliver 
  • A means of seeking broader diversification dampened volatility and income or excess returns 
  • Efficient access to non-correlated asset classes and strategies 
  • Flexibility to position portfolios opportunistically for near- and long-term market trends 
  • Liquid, cost-effective access to sophisticated strategies

Strategic & Thematic ETFs help buy-and-hold investors achieve long-term outperformance when compared to passive indexes while seeking more specific objectives such as: 

  • Higher-income 
  • Enhanced diversification 
  • Reduced volatility 
  • Excess returns and more  
Strategic funds provided by the company are in the form of the following:
Fund NameTickerUnderlying indexExpense ratio
Direxion Auspice Broad Commodity Strategy ETFCOMAuspice Broad Commodity ER Index0.70
Direxion NASDAQ-100 Equal Weighted Index SharesQQQENASDAQ-1000.35
Direxion Russell 1000® Value Over Growth ETFRWVGRussell 10000.63
Direxion Low Priced Stock ETFLOPXSolactive Two Bucks Index0.50
Thematic funds provided by the company are in the form of
Fund NameTickerUnderlying indexExpense ratio
Direxion Hydrogen ETFHJENIndxx Hydrogen Economy Index0.45
Direxion Moonshot Innovators ETFMOONS&P Kensho Moonshots Index0.65
Direxion Work From Home ETFWFHSolactive Remote Work Index0.45
Direxion mRNA ETFMSGRMessenger RNA Technology Index 0.65
Leveraged and Inverse ETFs provide opportunities for investors to: 
  1. Magnify short-term perspectives with daily 3X and 2X leverage 
  2. Utilize bull and bear funds for both sides of the trade. 
  3. Trade through rapidly changing markets 

Direxion leveraged ETFs have provided investors with several options based on investor tastes and preferences.  

The firm provides Daily Bull and Bear 3X ETFs  
  • These ETFs provide a daily 3X leverage to whatever the investor invests to boost the returns.  
  • These ETFs include sectoral ETFs, which may focus on aerospace, Internet, Financials, etc. The company also offers fixed income ETFs with a 3X leverage which may follow the bull or the bear trend. 
  • Market Cap-based ETFs are also on offer, which may track large, mid, and small-cap stocks on the exchange. A leverage-based approach is also available in this arena.  

Worldwide exposure can be achieved by investing in various ETFs which invest in emerging markets of likes as China and Mexico. The firm also offers a variety of MSCI-based ETFs.  

A 1X and 2X leveraged ETF choice is also available.  

Some examples of such funds are 
  • Aerospace & Defense Bull 3X Shares,  
  • Financial Bear 3X Shares,  
  • 20+ Year Treasury Bull 3X Shares,  
  • Small-Cap Bear 3X Shares,  
  • MSCI Mexico Bull 3X Shares,  
  • 5G Communications Bull 2X Shares,  
  • CSI 300 China A Share Bear 1X Shares. 

Along with ETFs, Direxion also provides mutual funds to investors. These are either actively managed or passively managed.  

Examples of some mutual funds offered by the company 
  • Hilton Tactical Income Fund,
  • Monthly 7-10 Year Treasury Bear 2X Fund,
  • Monthly NASDAQ-100 Bull 1.25X Fund, etc., are

According to the company, ‘Our role is to complement your core investment strategies, not replace them. Our funds allow you to seek opportunities in all market conditions, offering new solutions to challenge old standards.

At Direxion, we are focused on your success.  

We continuously strive to provide you with innovative products, consistent performance, and on-the-ground support to help you take advantage of opportunities, execute your strategies, deliver for your clients, and grow your business—regardless of market conditions.’  

Thus, Direxion leveraged ETFs need to be taken care of while investing in the ETF world or even the mutual fund world.

Consult our ETF expert advisor to discuss the right plan for you

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