Direxion Launches the First Pair Of 3x Leveraged ETFs Tracking the Price of Gold

New Funds Offer Exclusive Leveraged Long and Short Exposure to Gold Prices…  

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Direxion announced today the launch of two new 3X exchange-traded funds (ETFs) to its existing lineup of leveraged funds. The new ETFs, the Direxion Daily Gold Bull 3X Shares (GLDL) and the Direxion Daily Gold Bear 3X Shares (GLDS), are leveraged funds with the investment objective to seek 300 percent of the daily performance, or 300 percent of the inverse of the daily performance, (before fees and expenses) of Comex Gold Futures (“the benchmark”).

The benchmark for the ETFs is the daily last sale price value occurring on or before 4 p.m. E.S.T. of a standard gold futures contract for the current active month for 100 troy ounces of gold. This is the first pair of leveraged ETFs to track the price of gold and gold futures.

“Direxion’s leveraged ETFs are aggressive, athletic trading tools designed to provide sophisticated traders with vehicles to take advantage of market opportunities in either direction. By providing exposure to select markets on the long and short side, we help traders respond to short-term price movement as part of their overall active investment strategies,” said Dan O’Neill, CEO of Direxion.

Gold and gold futures are often considered a play on economic, political, or currency events. Many investors think the decline in gold prices that started last year will continue, and that gold may be susceptible to a severe drawdown similar to the period from 1988 to 1999. There’s sentiment from others that gold has bottomed, and it’s time to buy low.

“With 3X exposure in either direction, GLDL and GLDS provide the boldest way to seek returns from an ETF, whether gold prices rise or fall. Of course, traders have to get the direction right,” said Mr. O’Neill.

As with all leveraged ETFs, these Direxion ETFs are intended for use only by investors who understand the risks associated with seeking daily leveraged investment results and plan to actively manage their positions in the funds. There is no guarantee that the funds will achieve their objective.

Additional information about the two new Direxion ETFs is below:

Many sophisticated, active traders are using Direxion ETFs to hedge positions in their current portfolios, while others are using the funds in an attempt to take advantage of the volatility found in today’s markets.

“Our commitment to innovation continues as we expand the Direxion family of 3X leveraged ETFs in a focused manner as new opportunities arise,” Mr. O’Neill said. “We’re dedicated to developing funds that enable magnified exposure to a wide range of well-known broad indexes and targeted sectors, helping traders counter market and sector volatility with flexibility in their portfolios.”

Source: ETFWorld – Direxion