Russell Indexes Bolster New ETFs Based on Sectors, Commodities
Direxion's Launch of Leveraged Bull and Bear Funds Marks a First for Russell Global Sectors
Last update: 5:12 p.m. EST Nov. 7, 2008
TACOMA, Wash., Nov 07, 2008 (BUSINESS WIRE) -- Direxion Funds' launch of eight exchange-traded funds (ETFs) based on Russell Indexes this week introduced for the first time funds specifically tracking Russell's sector methodology. Direxion's announcement parallels a similar launch by ETF Securities on the London Stock Exchange and Irish Stock Exchange that for the first time employ Russell's commodity industry indexes for long exposure to world commodity markets.
"Both launches showcase the growing demand for a widening array of products based on our benchmarks," said Ron Bundy, managing director for Russell Indexes. "For similar reasons, these new ETF products rely on the same objective index methodology used for more than $4 trillion in benchmarked funds."
Direxion Funds, a pioneer in providing alternative investment strategies to sophisticated investors, now offers several Direxion Shares 3x ETFs -- leveraged Bull and Bear index funds that seek 300% of the daily performance, or 300% of the inverse of the daily performance (before fees and expenses) of four separate Russell Indexes. The list includes the large-cap Russell 1000(R) Energy Index as the benchmark for the Direxion Energy Bull 3x Shares fund and the Direxion Energy Bear 3x Shares fund. Similar funds were launched based on the Russell 1000 Index, Russell 2000(R) Index, and the Russell 1000 Financial Services Index.
Earlier this fall, ETF Securities, the global pioneer and market leader in Exchange Traded Commodities, launched its first platform of ETFs tracking equity indexes, including the Russell 1000 and Russell 2000 as well as the newly unveiled Russell Global Coal, Russell Global Gold, Russell Global Steel Large Cap, and Russell Global Shipping Large Cap indexes. The initial launch on the Irish Stock Exchange was followed this week with a complementary launch on the London Stock Exchange.
"Both of these innovative investment strategies clearly demonstrate Russell's ability to segment our comprehensive index design to great depth and with consistent precision," said Bundy.
Bundy noted that both ETF products show the industry's growing acceptance of Russell's index methodology. This growth includes the launch last year of global indexes which already have attracted nearly 200 subscribing clients including more than 100 investment managers.
These new funds are based on the sectors and industry groupings available with Russell Global Sectors (RGS), which features nine sectors and spans more than 10,000 stocks, 163 industries and 70 countries.
About Russell
Russell Investments is a global investment company with $180billion in assets under management as of September 30, 2008. Russell serves individual, institutional and advisor clients in more than 40 countries and provides investment solutions including mutual funds, retirement investments, institutional asset management, implementation services and global stock market indexes. Russell is world-renowned for its depth of manager research, quality of manager selection and access to some of the world's leading investment managers. It helps investors of all sizes put this access to work in corporate defined benefit and defined contribution plans, and in the life savings of individual investors.
With approximately 2,200 associates in more than 20 offices around the world, Russell provides financial services in major financial centers. Founded in 1936, Russell is a subsidiary of Northwestern Mutual Life Insurance Company and is headquartered in Tacoma. Russell operates principal offices in Amsterdam, Auckland, Johannesburg, London, Melbourne, New York, Paris, San Francisco, Seoul, Singapore, Sydney, Tokyo and Toronto.
About Direxion
Direxion Shares and Direxion Funds, managed by Rafferty Asset Management, LLC, offer leveraged index funds, ETFs and alternative-class fund products for investment advisors and sophisticated investors who seek to effectively manage risk and return in both bull and bear markets. Founded in 1997, the company has approximately $1.6 billion in assets under management. The company's business model is built on continuous product innovation, exceptional customer service and a commitment to building strategic relationships with distribution partners. For more information, please visit www.direxionfunds.com or www.direxionshares.com. To request more information on Direxion Shares 3x ETFs or to speak to a member of the Direxion team, contact Carol Graumann at 973-732-3521 or carol@jcpublicrelations.com.
About ETF Securities
ETF Securities Ltd is an issuer of Exchange Traded Commodities (ETCs) and Exchange Traded Funds (ETFs). ETF Securities is independently owned and is the European market leader in ETCs. The management of ETF Securities pioneered the development ETCs, with the world's first listing of an ETC, Gold Bullion Securities in Australia and London in 2003 and then the world's first entire ETC platform which was listed on the London Stock Exchange in 2006. Since then, ETF Securities has listed its ETCs on Europe's major exchanges (Frankfurt, Paris, Amsterdam and Italy) with each exchange creating a separate ETC segment. ETF Securities has most recently launched the largest platform of commodity sector ETFs in Europe providing exposure to European firsts such as Coal, Steel, Shipping and Nuclear Power. For more information visit www.etfseurities.com.
Russell Investments, a Washington, USA corporation, operates through subsidiaries worldwide.
Russell Investments is the owner of the trademarks, service marks and copyrights related to its indexes.
SOURCE: Russell Investments
Russell Investments
Steve Claiborne, 253-439-1858
newsroom@russell.com
www.russell.com
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