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Direxion

Direxion 3x Leverage ETFs Launch

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For you risk takers out there who like a bigger bang for your buck, Direxion Funds has launched several ETFs that offer 3x leverage in small caps, large caps, energy and financials.  There is no way I’d begin trading these in this kind of market unless I’m day trading for a few hours. .. and certainly I’d want to see liquidity of a few hundred thousand shares before getting in.  The small and large cap Direxion ETFs which began trading late last week are already proving to be very popular.  The Direxion Bullish Large Cap 3x ETF (BGU) traded nearly 500K shares today while the Direxion Bearish Large Cap 3x ETF (BGZ) traded nearly 250K shares today.

Here is the list 300% leveraged ETFs currently trading from Direxion Funds:

Direxion Large Cap Bull 3x ETF (BGU) (482K shares traded today)
Direxion Large Cap Bear 3x ETF (BGZ) (242K shares traded today)
Direxion Small Cap Bull 3x ETF (TNA) (209K shares traded today)
Direxion Small Cap Bear 3x ETF (TZA) (132K shares traded  today)
Direxion Energy Bull 3x ETF (ERX) (38K shares traded today)
Direxion Energy Bear 3x ETF (ERY) (28K shares traded today)
Direxion Financials Bull 3x ETF (FAS) (30K shares traded today)
Direxion Financials Bear 3x ETF (FAZ) (14K shares traded today)

The energy and financial ETF’s are way too illiquid right now but I’d imagine in a few weeks they will be liquid enough to trade as well.

You can get an analysis of FAZ or any of the other Direxion Funds below

direxion_3x_FAZ

Transportation

PowerShares Global Progressive Transportation ETF (PTRP) Launches

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Invesco PowerShares is making a name for itself as the number one provider of niche ETF’s and last week it launched another green ETF, this time in the transportation sector.  The PowerShares Global Progressive Transporation Portfolio ETF (PTRP) is a diversified way to play the transition toward cleaner, less costly and more efficient means of transportation. It’s based on the Wilder Nasdaq OMX Global Energy Efficient Transport Index (which has performed remarkably well in a tough  trading environment here in 2008 – up nearly 17% YTD through June 30) and includes companies that:

– improve energy efficiency
– reduce fuel costs
– harness renewable energy
– enrich energy conservation
– upgrade information systems

The fund is well diversified with no single holding more than 4% and along with green companies such as Clean Energy Fuels (CLNE) and Fuel Systems Solutions (FSYS) also includes shipping and rail companies.  Strangely enough, the largest holding is a Mexican airport operator..

Top 10 Holdings as of June 30 2008:

– Grupo Aero del Sureste (ticker: ASR) 3.92%
– Piaggio 3.57%
– Overseas Shipping (ticker: OSG) 3.53%
– Hamburger Hafenund 3.51%
– OceanFreight (ticker: OCNF) 3.49%
– Shimano Inc 3.44%
– Fuel Systems Solutions (ticker: FSYS) 3.43%
– Clean Energy Fuels (ticker: CLNE) 3.40%
– Enbridge (ticker: ENB) 3.36%
– Kirby (ticker: KEX) 3.18%