Direxion Investments has launched two new leveraged exchange-traded funds (ETFs), the company’s first currency hedged 2x leveraged ETFs.
The Direxion Daily MSCI Europe Currency Hedged Bull 2x Shares and the (HEGE) seeks to achieve 200 per cent of the daily performance of the MSCI Europe US Dollar Hedged Index. The index represents a close estimation of the performance that can be achieved by hedging the currency exposures of its parent index, the MSCI Europe Index, to the US dollar, the "home" currency for the hedged index.
The Direxion Daily MSCI Japan Currency Hedged Bull 2x Shares (HEGJ) seeks to achieve 200 per cent of the daily performance of the MSCI Japan US Dollar Hedged Index. The index represents a close estimation of the performance that can be achieved by hedging the currency exposures of its parent index, the MSCI Japan Index, to the US dollar, the "home" currency for the hedged index.
"Our interaction with clients tells us that there is a significant demand for magnified market exposure to currency-hedging equity strategies," says Brian Jacobs, President of Direxion Investments. "With the US dollar continuing to demonstrate strength against rival developed-market currencies, mitigating currency risk is a key concern for traders focused on international markets."
