Direxion To Shift To S&P Indexes On 8 ETFs
June 11, 2012
Direxion, the Newton, Mass.-based firm known for its leveraged and inverse funds, plans to change benchmarks on eight of its ETFs to S&P indexes from Russell indexes to shift toward what it called more recognizable exposure. The funds together have more than $1 billion in assets.
The changes, which also involve ticker changes on six of the eight funds, include ETFs that occupy the large-cap, midcap, technology and energy sectors, the company said last week in a press release. The shifts to new S&P benchmarks should be effective as of June 29.
As the indexes provide exposure to the same part of the U.S. equities market, Direxion's switch to S&P indexes appears motivated by the added comfort investors will have in using a highly recognizable index like the ones provided by S&P.
"We feel that these S&P indices provide our investors with the most recognizable exposure to these underlying markets," said Dan O'Neill, Direxion's president and chief investment officer.
The eight funds, along with their ticker changes, are as follows:
*Will be renamed the Direxion Daily S&P 500 Bull Shares
**Will be renamed the Direxion Daily S&P 500 Bear 3X Shares
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