If you wanted more access to leveraged ETF investing, your dreams are coming true. Direxion announced the addition of two new Direxion Shares "3x ETFs" to its existing line- up of multi-directional leveraged funds. Direxion launched its Direxion Mid Cap Bull 3x Shares (MWJ) and Direxion Mid Cap Bear 3x Shares (MWN) ETFs.
The new ETFs are leveraged bull and bear index funds which seek roughly300% of the directional moves in the Russell Mid-Cap Index, which isthe subset of the Russell 1,000 Index and whose components have anaverage market cap of roughly $5.2 billion.
Direxion Mid Cap Bull 3x Shares (MWJ) is expected to move at roughly 300% of the same direction as the Russell Mid-Cap Index.
Direxion Mid Cap Bear 3x Shares (MWN) is expected to move at roughly 300% of the inverse direction of the Russell Mid-Cap Index.
If you are highly aggressive or need some very rapid access toleverage, then these leveraged ETFs are what you want. But these arenot your grandmother’s cup of tea.
Jon C. Ogg
January 8, 2009