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Top Portfolio Products: Direxion Rolls Out Leveraged Bear, Bull ETFs

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New products and changes introduced over the last week include leveraged bull and bear ETFs from Direxion, a trust from Hennion & Walsh and a hedge fund from Wharton GC.

In addition, Gemini announced the launch of a centralized managed account platform and New York Life unveiled a chronic care rider for new whole life policies.

Here are the latest developments of interest to advisors:

1) Direxion Launches 3X Leveraged Bull and Bear ETFs

Direxion announced Tuesday the launch of its Direxion Daily FTSE Europe Bull 3X Shares (EURL) and Direxion Daily FTSE Europe Bear 3X Shares (EURZ). Both ETFs track the FTSE Developed Europe Index, created and managed by global index provider FTSE, which is a free-float-adjusted composite designed to measure the equity market performance of mid- and large-cap segments of developed markets in Europe.

EURL seeks to generate daily investment results of 300% of the index’s performance, before fees and expenses. EURZ attempts to deliver daily investment results, before fees and expenses, of 300% of the inverse of the same composite’s performance.

2) Hennion & Walsh Launches Trust

Hennion & Walsh has announced the launch of its SmartTrust NASDAQ International Dividend Achievers Index Trust, Series 1. The two-year trust seeks to pursue its objective by investing in a portfolio consisting of the publicly traded foreign securities making up the NASDAQ International Dividend Achievers Index. The objective of the index is to track the performance of certain foreign securities with at least five consecutive years of increasing regular dividend payments.

The security types eligible for the index include American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), limited partnership interests, ordinary shares and shares of limited liability companies.

3) Wharton GC Launches New Hedge Fund Oracle of Investing Fund LP

Wharton GC announced Monday that that it will launch a new hedge fund this year, and had sold another minority equity stake in the firm to an unidentified buyer to help ensure its long-term viability. The firm described its new fund, Oracle of Investing Fund LP, as a variation of its long-short and global macro strategies that seeks to perform in any economic environment.

The firm said in a report that Oracle of Investing Fund LP would help ensure that Oracle Fund doesn’t grow to such an extent that could hurt its returns. The report did not specify how much Wharton GC planned to raise for the new Oracle of Investing Fund LP, or whether it would take money only from existing investors.

4) Guardian Announces New Investment Option

The Guardian Insurance & Annuity Company, Inc. (GIAC), a wholly owned subsidiary of The Guardian Life Insurance Company ofAmerica (Guardian), announced Monday the addition of Federated Investors Inc.’s Capital Preservation Fund to the Guardian Choice and Guardian Advantage fund lineups.

Federated’s Capital Preservation Fund is a stable value fund aimed at preserving principal and generating high current income by investing in guaranteed investment contracts, money market mutual funds, and other stable value products.

5) Gemini Announces Launch of Centralized Managed Account Platform

Gemini Fund Services, LLC announced Monday that its parent company, NorthStar Financial Services Group LLC, has launched a new subsidiary, Gemini Alternative Funds, LLC (Gemini Alt), which serves as a centralized platform for delivering a wide range of operational services to the alternative investment community. David Young serves as Gemini Alt’s president as well as president of Gemini Hedge Fund Services, LLC.

The platform offers transparency, risk management and monitoring, distribution, fund structuring, liquidity enhancement and uniform operational set-up services. It also performs due diligence on all participating funds and managers, and its customizable portfolio and risk management technology provides near real-time data.

6) New York Life Announces Chronic Care Rider

New York Life has announced a chronic care rider for its whole life policies that offers policyholders the option of accelerating their policy’s face amount to help pay for chronic care needs. The rider is available on newly issued New York Life Whole Life and Custom Whole Life insurance policies.

The rider, with a premium guaranteed to stay level, can be used to pay for at-home care, a nursing home stay, or to help supplement the needs of family members who are spending time providing care. If a policyholder does not need to use their benefits for chronic care, those funds remain intact as life insurance benefits for heirs or as cash value.

Read the Jan. 17 Portfolio Products Roundup at ThinkAdvisor.


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