Direxion Shares added two new leveraged exchange-traded funds (ETFs), targeting stocks in emerging markets (EM).
The Direxion Daily Brazil Bull 3x Shares (NYSEARCA:BRZU) and Direxion Daily South Korea Bull 3x Shares (NYSEARCA:KORU) debuted this week on the NYSE Arca exchange.
BRZU aims for daily investment results, before fees and expenses, of 300% of the performance of the MSCI Brazil 25/50 Index. The MSCI Brazil 25/50 Index measures the equity market performance of mid- and large-cap Brazilian companies.
KORU seeks daily investment results, before fees and expenses, of 300% of the performance of the MSCI South Korea 25/50 Index. The MSCI South Korea 25/50 Index measures the equity market performance of mid- and large-cap South Korean companies. (Watch: How ETFs inside 401(k) Plans are Changing the Retirement Planning Landscape)
"We conduct market analysis and reviews on a constant basis in order to identify new opportunities in various regions and sectors for sophisticated investors who actively manage their trading positions," said Eric Falkeis, President of Direxion. "Brazil and South Korea are emerging markets with many successful commodity, technology and automobile companies. Direxion is allowing investors to not only obtain more surgical exposure to these booming economies, but also to leverage their performance through innovative investment products."
The ETFs do not attempt to achieve their investment objectives over periods longer than one day.
Direxion Funds and Direxion Shares, managed by Rafferty Asset Management, LLC oversees around $6.5 billion in assets.
Other New ETFs VelocityShares launched three ETFs linked to US listed ADRs and LSE-traded GDRs.
The VelocityShares Emerging Market DR ETF (NASDAQ:EMDR), the VelocityShares Emerging Asia DR ETF (NASDAQ:ASDR), and the VelocityShares Russia Select DR ETF (NASDAQ:RUDR). Each of the funds charges annual expenses of 0.65% and follows stock benchmarks from BNY Mellon.
Depositary receipts are issued by a bank that purchases shares of a non-U.S. company and issues shares based on the foreign holdings.
ADRs are depositary receipts that trade on a U.S. exchange and thus are subject to registration and disclosure requirements under the Securities Acts of 1933 and Securities Exchange Act of 1934, each as amended. GDRs are similar to ADRs, but may be issued in bearer form and are typically offered for sale globally and held by a foreign branch of an international bank.
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