Direxion Files Plans For Three Quantum-ISE ETFs

Fresh off news that the firm has filed plans to introduced nine India-specific ETFs, Direxion, the eleventh-largest U.S. ETF issuer, has filed plans with the SEC to introduce three new ETFs based on Quantum-ISE market strategies. The Quantum-ISE Enhanced Broad Market Shares ETF track the Quantum-ISE Enhanced Broad Market Return Index, which is made up of 200 stocks from all three value caps (large, mid and small). Selection and weighting of component securities is based on proprietary research. The research first examines the historical relationships between certain corporate factors and the performance of the related stocks; and then applies the knowledge of such relationships in attempting to identify and select the 200 stocks that have the best chance of generating enhanced alpha, according to the filing. The Quantum-ISE Enhanced Large-Cap Shares ETF will take a similar approach with 100 domestic large-cap equities while the Quantum-ISE Enhanced Small-Cap Shares ETF will be the small-cap equivalent and also track 100 stocks. Expense ratios for all three funds will be 0.85% and no tickers were disclosed in the filings. Direxion has made a name for itself in the ETF business by becoming one of the top providers of leveraged and inverse funds, but with the Quantum-ISE funds and the India offerings, it is clear Direxion is trying to expand its non-leveraged lineup as well. Currently, Direxion offers just one plain-vanilla ETF, the Direxion Airline Shares FLYX, which debuted in December. Direxion had 42 ETFs with almost $6.5 billion in assets under management at the end of April.