Direxion, the Massachusetts-based ETF issuer best known for its suite of leveraged funds, has filed plans with the Securities and Exchange Commission to possibly introduce four pairs of triple-leveraged bullish and bearish ETF tracking international markets.
The firm has filed plans for the Direxion Daily Chile Bull 3x Shares and the Direxion Daily Chile Bear 3x Shares. Those funds will track the daily performance of the MSCI Chile IMI 25/50 Index, the same index followed by the $589.9 million iShares MSCI Chile Capped Investable Market Index Fund (NYSE:ECH).
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Direxion, the second-largest issuer of leveraged ETFs, has also filed plans for the Direxion Daily Hong Kong Bull 3x Shares and the Direxion Daily Hong Kong Bear 3x Shares. Those ETFs will follow the MSCI Hong Kong Index, the underlying index for the $3.49 billion iShares MSCI Hong Kong Index Fund (NYSE:EWH).
The Direxion Daily Japan Bull 3x Shares and the Direxion Daily Japan Bear 3x Shares have also been added to Direxion's regulatory pipeline. Those funds will follow the MSCI Japan Index, the same index used by the iShares MSCI Japan Index Fund (NYSE:EWJ), the largest Japan ETF.
Investors could get their first taste of triple-leveraged Mexico exposure if the Direxion Daily Mexico Bull 3x Shares and the Direxion Daily Mexico Bear 3x Shares come to life. Those ETFs will follow the MSCI Mexico IMI 25/50 Index, the underlying index for the $3 billion iShares MSCI Mexico Capped Investable Market Index Fund (NYSE:EWW).
Direxion's Chile and Mexico leveraged funds will have expense ratios of 1.1 percent per year, according to the filing. The Hong Kong and Japan ETFs will have annual fees of 1.08 percent.
The Chile and Hong Kong offerings, assuming they come to market, would currently face no competition. However, Direxion rival ProShares issues the double-leveraged ProShares UltraShort MSCI Japan (NYSE:EWV) and the ProShares Ultra MSCI Japan (NYSE:EZJ). ProShares also sponsors two double-leveraged plays on Mexico, the ProShares UltraShort MSCI Mexico Capped IMI (NYSE:SMK) and the ProShares Ultra MSCI Mexico Capped IMI (NYSE:UMX).
Direxion introduced two new ETFs on Wednesday, the Direxion Daily South Korea 3X Bull Shares (NYSE: KORU) and the Direxion Daily Brazil Bull 3X Shares (NYSE: BRZU).
Direxion currently has three other leveraged country-specific bullish emerging markets ETFs trading. Those are the Direxion Daily Russia Bull 3X Shares (NYSE:RUSL), the Direxion Daily China Bull 3X Shares (NYSE:YINN) and the Direxion Daily India Bull 3X Shares (NYSE:INDZ).
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