Direxion has launched two leveraged exchange-traded funds tracking the global equity performance of junior gold-mining companies.
The Direxion Daily Junior Gold Miners Index Bull 3X Shares (JNUG) seeks to achieve daily investment results, before fees and expenses, of 300 per cent of the performance of the Market Vectors Junior Gold Miners Index.
The Direxion Daily Junior Gold Miners Index Bear 3X Shares (JDST) seeks daily investment results, before fees and expenses, of 300 per cent of the inverse of the performance of the Market Vectors Junior Gold Miners Index.
The index is a market-capitalisation-weighted total return index. It covers the largest and most liquid small-cap companies that derive at least 50 per cent of their revenue from gold or silver mining, or have properties that do so. The composite includes companies based in the US and other markets, including Australia, Canada and Singapore. As of 15 September 2013, the index had average and median market capitalisations of USD362.46m and USD294.74m, respectively.
“At a time when a growing number of investors are expressing interest in exposure to companies engaged in the exploration and production of gold, we are offering liquid exposure to this sector with the benefit of added leverage,” says Eric Falkeis, president of Direxion. “These two funds are designed for traders that wish to take a bullish or bearish stance on the gold-mining industry.”
