Direxion rolled out four new ETFs yesterday (5/25/11) providing +3x and -3x leveraged exposure to existing ETF offerings from Van Eck Market Vectors. This is not the first time Direxion has taken this path, having added leverage to the Market Vectors Gold Miners ETF (GDX) last December.On the joys of shorting ETF pairs:
Direxion Daily Agribusiness Bull 3x Shares (COWL) and Direxion Daily Agribusiness Bear 3x Shares (COWS) track the same DAXglobal Agribusiness Index as the unleveraged
MarketVectors Agribusiness ETF (MOO) (MOO overview). COWL provides +300% the daily return while COWS provides -300% (three times the inverse) the daily return. The new ETFs hold swaps on the performance of MOO and have their expense ratios capped at 0.95%.
The underlying index has current sector exposures of Materials 48.0%, Consumer Staples 35.0%, and Industrials 17.0%. Country weightings include U.S. 47.9%, Singapore 10.5%, Canada 10.0%, Switzerland 7.5%, and Germany 4.4%. The COWL/COWS combined fact sheet (pdf) provides additional background on the funds, while the COWL overview and COWS overview contain links to other material....MORE
Direxion 3x Financial ETFs Go Certifiably Crazy (FAS; FAZ etc.)
...One approach is to short both of them, in effect writing an option. Ooops, have I said too much?
FAS and FAZ: A Short Seller's Dream?
Shorting Leveraged ETF Pairs (FAS, FAZ: SPXU, UPRO)
UPDATED: "Shorting Leveraged ETF Pairs (FAS, FAZ: SPXU, UPRO)"
"Shorting Leveraged ETF Pairs" (FAS; FAZ; QLD; QID)