Big changes are coming to the Direxion Shares ETF lineup: The company’s Board of Trustees approved realignment to the names and investment strategies for 10 leveraged funds.
The funds' new investment objectives will seek daily results, before fees and expenses, of 300% leverage or 300% inverse performance of the fund's target index. The funds previously sought daily results of 200% or 200% inverse.
The increase in daily leverage took place on December 1 and apply to the Direxion funds outlined in the accompanying chart.
On its website, Direxion shares the possible performance scenarios of its ETFs online and explains that the funds "are designed as short-term trading vehicles for investors who intend to actively monitor and manage their portfolios."
The funds are "not intended to be used by, and are not appropriate for, investors who do not intend to actively monitor and manage their portfolios," according to Direxion.
The Boston-based investment firm manages around $7.5 billion in ETF assets.