Direxion’s 2x ETFs Becoming 3x ETFs
Direxion, one of the largest issuers of leveraged exchange-traded funds, will make significant changes to ten of its products next week. Effective December 1, the Direxion ETFs currently offering 2x and -2x exposure to their underlying index will begin seeking to deliver daily results that correspond to 3x or -3x of the related benchmark. That change will obviously increase the volatility of these products, and will also have an impact on margin requirements for investors with positions in these funds. Read more.
