Steve's Place

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3X Leveraged ETFs November 10, 2008
BGU / BGZ / ERX / ERY / FAS / FAZ / SSO / TNA / TZA

Contrary to expectations (including mine), the Direxion 300% leveraged and inverse ETFs are rapidly gaining traction in the marketplace.

The company launched eight super-leveraged ETFS last week:

Fund
Ticker
Index

Large Cap Bull 3x Shares
BGU
Russell 1000 (300%)

Large Cap Bear 3x Shares
BGZ
Russell 1000 (-300%)

Small Call Bull 3x Shares
TNA
Russell 200 (300%)

Small Cap Bear 3x Shares
TZA
Russell 2000 (-300%)

Energy Bull 3x Shares
ERX
Russell 1000 Energy (300%)

Energy Bear 3x Shares
ERY
Russell 1000 Energy (-300%)

Financial Bull 3x Shares
FAS
Russell 1000 Financial Services (300%)

Financial Bear 3x Shares
FAZ
Russell 1000 Financial Services (-300%)


The funds are designed to deliver 300% and -300% of the daily return of their benchmark indexes, and follow in the success of the wildly successful ProShares ETFs, which provide 200% and -200% exposure to the market.