Direxion, currently the only outfit offering 3X daily return ETFs, is launching 4 new ETFs with the following ticker symbols already registered:
- Daily China Bull 3X Shares (CZM)
- Direxion Daily China Bear 3X Shares (CZI)
- Direxion Daily Latin America Bull 3X Shares (LBJ)
- Direxion Daily Latin America Bear 3X Shares (LHB)
In addition to these, Direxion has also registered the following with tickers yet to be assigned:
- Direxion Daily S&P 500 Bull 3x Shares
- Direxion Daily Semiconductor Bull 3x Shares
- Direxion Daily S&P 500 Bear 3x Shares
- Direxion Daily Semiconductor Bear 3x Shares
A few things to consider before investing in these ETFs:
- Primarily, these ETFs are often poorly understood by retail investors. Due to the nature of daily rebalancing and volatility, the overall value of these instruments tend to decline over time (i.e. you can lose money on these even in a flat market) – see this article for a visual explanation.
- Also consider that FINRA recently imposed new margin requirements which makes it a bit more of a hassle to trade with these.
- Several other 2x and 3x ETFs exist – see this Leveraged ETF List for more details.