Dice from Direxion

USA

More gambling instruments from Direxion

Leveraged and inverse specialist Direxion is pumping out four more items.

  • Direxion Daily S&P 500 High Beta Bull 3x Shares ETF (HIBL) – 1.12%
  • Direxion Daily S&P 500 High Beta Bear 3X Shares (HIBS) – 1.07%
  • Direxion Daily Dow Jones Internet Bull 3X Shares (WEBL) – 1.17%
  • Direxion Daily Dow Jones Internet Bear 3X Shares (WEBS) – 1.07%

They all use swaps to achieve 3x the daily movement of their various indices. As always, potential investors should understand these funds only give 3x the performance on a daily basis. Because of the compounding of the daily reset function, the funds go to zero over the long term and the +/- products don’t hedge against each other.

Analysis – sick of self-righteousness over L&I ETFs?

Leveraged and inverse ETFs provoke a lot of self-righteous sanctimony. They seem to be one of those things that you can criticise, like smoking breaks, in a corporate setting without having to go out on a limb and face career risk. 

Besides being entirely uninteresting, the L&I smug cloud is also somewhat hypocritical. Do the people criticising L&I ETFs throw the same pies at CFDs or spread betting, which are worse? Do they criticise margin trading, which is again worse as you can lose more money than you have? No of course not. Next.