Direxion Files for Leveraged Dow ETFs

Direxion, the second-largest issuer of inverse and leveraged ETFs, has filed plans with the Securities and Exchange Commission to (possibly) introduce six new leveraged funds. The news comes less than two weeks after the firm announced it will shutter nine of its funds because those products have failed to attract sufficient assets. Direxion has filed plans for four geared Dow Jones Industrial Average ETFs. The funds are the Direxion Daily Dow 30 Bull 2X Shares, the Direxion Daily Dow 30 Bear 2X Shares, the Direxion Daily Dow 30 Bull 3X Shares and the Direxion Daily Dow 30 Bear 3X Shares. The firm has also filed plans for the Direxion Daily European Equity Bull 3X Shares and the Direxion Daily European Equity Bear 3X Shares. Direxion's European funds will compete with the ProShares UltraShort MSCI Europe EPV and the ProShares Ultra MSCI Europe UPV. The new Dow funds from Direxion would compete with the ProShares UltraPro Short Dow30 SDOW and the ProShares Ultra Dow30 DDM. Direxion's new funds would charge 0.75 percent per year, according to IndexUniverse. That might give the firm an advantage over ProShares, which charges 0.95 percent for DDM and SDOW.