Direxion Investments has launched the Direxion iBillionaire Index ETF (IBLN), an exchange-traded fund (ETF) that tracks the iBillionaire Index.
The fund seeks to outperform the S&P 500 Index by tapping into the investment strategies of Wall Street’s top billionaire investors, including many hedge fund managers.
The fund does not use leverage.
“This strategic beta ETF allows investors to have unprecedented access to the strategies successfully deployed by well-known billionaires, in a way that’s transparent, liquid and cost-efficient,” says Brian Jacobs, president of Direxion Investments. “We look forward to continuing to harness our index-replication expertise to further democratise Wall Street – providing greater access to opportunities and data previously only available to the wealthiest and most sophisticated investors.”
The iBillionaire Index, introduced in November 2013, consists of the 30 leading US stocks in which a pool of up to 10 billionaires has invested the most assets. All billionaires in the pool must meet several criteria, including a portfolio turnover rate of less than 50 per cent and a demonstrated long-term investment strategy.
The index gives investors access to the financial data and investment choices of the most consistently successful US investment billionaires. iBillionaire creates the index using information culled from Securities and Exchange Commission 13F filings, and rebalances the composite on a quarterly basis.