ETFs
Direxion META single-stock ETFs envelop the Mag-7 range
The Magnificent Seven – Issue 7
Directionwhich manages more than $40.1 billion across 85 ETFs, has launched a pair of funds offering leveraged long and short exposure to Meta Platforms Inc., complementing its Magnificent Seven single-stock lineup.
THE Direxion Daily META Bull 2X Shares ETF (METU) and the Direxion META Bear 1X Equity ETF (METD) complement Direxion’s Mag Seven single-stock ETF lineup that launched in August 2022 with exchange-traded funds offering leveraged and short exposure to Apple Inc. and Tesla Inc. New York-based Direxion , added single-stock ETF exposure to Alphabet Inc., Amazon.com Inc. and Microsoft Corp. in September 2022 and Nvidia Corp. one year later.
The deliberate pace of the rollout, which began shortly after the Securities and Exchange Commission began allowing single-stock ETFs, was tied to anticipated investor appetite, according to Ed Egilinsky, chief executive of Direxion, based in New York.
“We wanted to see how the single-stock ETFs would be received, and we thought some of the other single stocks might be more easily traded,” he said.
Complete list of Direxion Mag Seven ETFs
Because the Single Stock ETF When you make long or short bets and the price resets daily, stock price volatility is an important factor in attracting active investors and day traders.
“Single-stock ETFs have exploded in popularity recently,” said Sumit Roy, senior ETF analyst at etf.com, who cited the success of GraniteShares 2X Long NVDA Daily ETF (NVDL)which rose to $3 billion.
Another example of category appeal is the Direxion Daily TSLA Bull 2X Stocks ETF (TSLL) to 1 billion dollars.
“These are numbers that many people would not have believed when single-stock ETFs were launched less than two years ago,” added Roy.
Leverage on six Mag Seven single-stock ETFs launched by Direxion ahead of the META releases was each changed from 1.5x leverage to 2x leverage in April to reach the maximum leverage allowed for single-stock ETFs.
In Direxion’s ETF lineup, Egilinsky said three of the top 10 funds in terms of inflows this year are single-stock ETFs.
As trading vehicles, leveraged and inverse ETFs can experience wild moves in terms of entries and exits, Egilinsky said.
“As the market has recovered, we have seen significant inflows into our bear products,” he said.
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