Direxion to Roll Out 3 New Volatility ETFs on Wednesday

Direxion, the second-largest U.S. issuer of inverse and leveraged ETFs, will add to its non-leveraged lineup on Wednesday January 11, 2012 when the firm rolls out three new volatility ETFs. The new funds are as follows: The S&P 1500 RC Volatility Response Shares VSPR, the Direxion S&P 500 RC Volatility Response Shares VSPY and the Direxion S&P Latin America 40 RC Volatility Response Shares VLAT. All three funds will feature expense ratios of 0.45%. The Direxion S&P 500 RC Volatility Response Shares will track the S&P 500 Risk Control Index, which is comprised of bonds and S&P 500 stocks. The index has a volatility target that adjusts based on the S&P 500's exponentially-weighted historic volatility. The S&P 1500 RC Volatility Response Shares will track the S&P Composite 1500 Dynamic Rebalancing Risk Control Index which also has a volatility target that adjusts based on the S&P 1500's exponentially-weighted historic volatility. The Latin America ETF will track the S&P Latin America 40 Dynamic Rebalancing Risk Control Index, an index that is designed to be the volatility answer to the S&P Latin America 40 Index. That index is used for the iShares S&P Latin America 40 ETF ILF. The new Direxion LatAm play will track stocks from Brazil, Chile, Mexico and Peru. ILF has exposure to Colombia in addition to Brazil, Chile, Mexico and Peru. In December, Direxion re-entered the non-leveraged/inverse ETF arena by rolling out the Direxion Large Cap Insider Sentiment Shares INSD and the Direxion All Cap Insider Sentiment Shares KNOW. Both funds have over $3.9 million in assets under management. At the end of 2011, Direxion had 52 ETFs with almost $6.7 billion in AUM.