Direxion Introduces 3 New ETFs, Including One The Robinhood Crowd Ought To Love

ETF Professor
·2 min read

As part of its ongoing efforts to increase its offerings of non-leveraged exchange-traded funds, Direxion is introducing three ETFs today, including one that dip buyers, including the Robinhood crowd, ought to love.

What Happened

The Direxion Fallen Knives ETF (NYSE: NIFE) is one of the new additions from Direxion. That rookie fund follows the Indxx US Fallen Knives Index, a benchmark designed to identify stocks that have fallen precipitously but could be primed for big rebounds.

“Fallen knives may offer the opportunity for outperformance within an equity allocation. A systematic approach brings a concentrated basket of the prospective securities within the US stock market,” according to Direxion. “Screening for eligible names that have recently experienced substantial negative returns helps identify differentiated exposure.”

As is to be expected, NIFE's sector weights will change over time. The new fund debuts with nearly 50 holdings, more than half of which hail from the healthcare sector and a quarter of which are technology names.

NIFE charges 0.50% per year, or $50 on a $10,000 investment.

Why It's Important

Another new Direxion ETF – the Direxion Dynamic Hedge ETF (NYSE: DYHG) – is being launched in partnership with Salt Financial. That's the issuer behind the Salt High truBeta US Market ETF (CBOE: SLT) and the Salt Low truBeta US Market ETF (CBOE: SLT) – two products that bring fresh approaches to high and low beta investing.

DYHG follows the Salt truVol US Large Cap Dynamic Hedge Index. That benchmark is designed to measure near-term volatility, using short futures contracts to manage risk. In volatile market environments, DYHG will increase short exposure to S&P 500 futures while moving to long exposure in those contracts in more sanguine climates.

The new ETF charges 0.57% per year.

What's Next

The Direxion High Growth ETF (NYSE: HIPR) is the other fund joining Direxion's roster and could be a real treat for growth investors as the rookie ETF tracks the Russell 1000 Hyper Growth Index. That index blends traditional growth metrics, such as revenue, earnings, and cash flow growth, with the momentum and quality factors.

As an example of how “hyper growth” is defined here, HIPR allocates 24% of its weight to Apple (NASDAQ: AAPL) and Facebook (NASDAQ: FB), but that duo combine for just 11% of the traditional Russell 1000 Growth Index.

HIPR's annual fee is 0.40%.

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