More New ETFs: Direxion's Leveraged Ag ETFs

Direxion will expand its lineup of leveraged and inverse ETFs on Wednesday May 25 with the introduction of the Direxion Daily Agribusiness Bull 3x Shares ETF COWL and its bearish cousin, the Direxion Daily Agribusiness Bear 3x Shares ETF COWS. COWL will seek to provide 300% of the DAILY price performance of the DAX Global Agribusiness Index while COWS while attempt to provide 300% of the DAILY inverse performance of the index. Both ETFs will have expense ratios of 0.95%. As of February 2, 2011, the companies included in the Index have an average market capitalization of $10.14 billion and a median market capitalization of $4.22 billion, according to ETF Daily News. At first glance, it appears that COWL and COWS are the leveraged and inverse equivalents to the Market Vectors Agribusiness ETF MOO, the dominant equity-based ETF offering exposure to farm plays such as Deere DE, Agrium AGU and Potash POT. Nearly four years old, MOO has over $4.5 billion in assets under management. Direxion will also introduce the Direxion Daily Russia Bull 3x Shares ETF RUSL and the Direxion Daily Russia Bear 3x Shares ETF RUSS on Wednesday, expanding its current lineup by almost 10% in a single day. At the end of April, Direxion had 42 ETFs on the market with $6.5 billion in assets under management, making the firm the eleventh-largest U.S. ETF issuer.