Direxion has launched a pair of leveraged exchange-traded funds tracking the equity performance of mid- and large-capitalisation companies in Europe’s developed markets.
The Direxion Daily FTSE Europe Bull 3X Shares (EURL) seeks to generate daily investment results of 300 per cent of the FTSE Developed Europe Index’s performance, before fees and expenses.
The Direxion Daily FTSE Europe Bear 3X Shares (EURZ) attempts to deliver daily investment results, before fees and expenses, of 300 per cent of the inverse of the same composite’s performance.
The FTSE Developed Europe Index, created and managed by global index provider FTSE, is a free-float-adjusted composite designed to measure the equity market performance of mid- and large-cap segments of developed markets in Europe.
“Now that Europe has exited recession and the global economy is recovering, this is the ideal time to offer active traders an opportunity to gain leveraged exposure to the most liquid stocks in developed European markets,” says Eric Falkeis (pictured), president of Direxion. “By following a reliable benchmark from one of the strongest global index providers, Direxion is trying to give short-term investors the best possible chance of receiving healthy returns and additional diversification, regardless of their regional investment outlook.”
As of 31 December 2013, the FTSE Developed Europe Index consisted of companies with market capitalisations between USD344m and USD236.78bn, and generated total annual return of 26.2 per cent. Also as of that date, the index included companies based in 17 countries — Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the UK.
On 12 December 2013, two of Direxion’s other leveraged ETFs — the Direxion Daily FTSE China Bull 3X Shares (YINN) and Direxion Daily FTSE China Bear 3X Shares (YANG) – began following the FTSE China 25 Index.
“On the heels of their recent move to transition two leveraged ETFs to the FTSE China 25 Index, the decision by Direxion to launch two new leveraged ETFs linked to the FTSE Developed Europe Index reinforces our leading approach to both developed and emerging markets,” says Jonathan Horton, president of FTSE North America and head of FTSE’s exchange-traded product service unit. “The expansion of our relationship with Direxion also serves as another indication that global investor confidence is returning — to the point where there is growing demand for leveraged ETF strategies catering to both bull and bear investors.”