Direxion Shares Launches 3x Leveraged Treasury ETFs

Direxion Funds is announcing the addition of four more 3x leveraged ETFs which will focus on Treasuries.  The bull and bear 3x Treasury ETFs will seek to return 300% the daily performance (or in the inverse for the bear ETFs) of the 10 and 30 Yr Treasury Indexes.  Just like all the Direxion ETF funds I’d expect these to be very popular with short term traders for hedging and leveraged day trading.

“We will continue to further expand and enhance our ETF lineup with such unique products,” said Direxion President Dan O’Neill. “This strategic move to offer leveraged Treasury ETFs is another example of our commitment to developing tools designed to help meet the demand of the tactically minded investor attempting to mitigate portfolio risk and opportunity.”

Here are the ETFs being offered:

– 10 yr Treasury Bull 3x (TYD) 300% leverage
– 10 yr Treasury Bear 3x (TYO) – 300% leverage
– 30 yr Treasury Bull 3x (TMF) 300% leverage
– 30 yr Treasury Bear 3x (TMV) -300% leverage

It should also be noted that Direxion will immediately add the word “Daily” to all its ETF names to reflect the fact the funds seek daily investment goals and should only be used for very short term trading.  There has been much discussion about erosion in performance over the longer haul in leveraged ETFs, so this is probably in response to that. 

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