Direxion has expanded its lineup of single stock ETFs with four new funds offering leveraged and inverse exposure to Netflix and Taiwan Semiconductor Manufacturing Company (TSM).
According to a Thursday press release, the new funds include the Direxion Daily NFLX Bull 2X Shares (NFXL), Direxion Daily NFLX Bear 1X Shares (NFXS), Direxion Daily TSM Bull 2X Shares (TSMX) and Direxion Daily TSM Bear 1X Shares (TSMZ).
Edward Egilinsky, managing director at Direxion, told etf.com that the company chose these stocks based on their broad appeal and trading activity.
“Netflix and Taiwan Semiconductor Manufacturing are two of the hottest names in the retail space, lending themselves well to tactical trading in response to potential company events and market sentiment,” Egilinsky said in the release.
Direxion’s existing suite of single stock, leveraged and inverse ETFs has amassed over $3 billion in assets since launching two years ago, according to the press release.
Single Stock ETFs for Short-Term Trading
“These are vehicles that need to be monitored on a day-to-day basis,” Egilinsky said, emphasizing that the products are designed for sophisticated, active traders rather than buy-and-hold investors.
The ETFs reset daily, which means they aim to deliver their stated leverage factor on a single-day basis. Egilinsky noted that compounding effects can affect returns over periods longer than one day.
Egilinsky explained that the TSM ETFs offer exposure to a major semiconductor stock beyond Nvidia, which Direxion already covers with both the $563 million Direxion Daily NVDA Bull 2X Shares (NVDU) and the $25.3 million Direxion Daily NVDA Bear 1X Shares (NVDD). For Netflix, he cited the company’s global reach as appealing to both U.S. and international traders.
The new funds join Direxion’s lineup of 14 existing single stock ETFs focused on the “Magnificent Seven” tech giants. Egilinsky said the company aims to focus on liquid, widely traded names.
Egilinsky hinted at potential future funds, stating Direxion will consider adding more single stock ETFs “ if it’s a differentiator in the marketplace, and it’s additive in some way to the current lineup that we have.”
The press release notes that Direxion managed about $48.6 billion in assets as of Sept. 30. Its largest ETF is the $11.3 billion Direxion Daily Semiconductor Bull 3X Shares (SOXL), according to etf.com data.
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