Business · Markets · 1 day ago
Direxion launches ETF combining S&P 500 and futures trend strategy
US investment firm Direxion launched the US 500 Plus ETF, ticker SPXP, on the New York Stock Exchange on October 7.
The fund puts its investment money into S&P 500 futures to track the index, while using futures markets in commodities, currencies and global bonds for a second strategy.
That strategy buys markets rising in price and sells markets falling in price, following set rules rather than judging why prices are moving.
Because futures trading requires only a deposit, the fund can run both strategies at once with the same investment money.
Their returns are added together, so the second strategy could reduce losses if stocks fall, though it does not guarantee a gain.
The annual fee is 0.92%.
The approach has drawn attention because US stocks are near record highs and bond prices have fallen as US Treasury yields have risen, making some investors seek other ways to diversify.
No further steps or plans for the fund are specified.
Direxion listed the US 500 Plus ETF, ticker SPXP, on the New York Stock Exchange on October 7.
The fund combines exposure to the S&P 500 with a trend-following managed-futures strategy.
It invests the full amount of its capital in S&P 500 futures while using the same capital to run the additional strategy across 21 futures markets.
The strategy buys assets with rising prices and sells assets with falling prices, including in commodities, currencies and global bonds.
The fund’s annual expense ratio is 0.92%.
- Who
- Direxion, a US asset manager, launched the ETF.
- What
- It launched the US 500 Plus ETF, ticker SPXP, combining S&P 500 exposure with a managed-futures strategy.
- When
- October 7, local time.
- Where
- The New York Stock Exchange.
- Why
- Direxion said the fund packages a complex strategy in one ETF for individual investors. The article says demand has grown for an alternative source of returns as stocks appear highly valued and bonds have struggled to diversify risk.
This story does not have two clearly opposing sides.
Individual investors can now access in one ETF a strategy that was complicated for them to use directly.
Direxion listed the US 500 Plus ETF on the New York Stock Exchange.
Hankyung reported the listing.
Hankyung published its article about the fund.
- Fund
- Direxion US 500 Plus ETF (SPXP)
- Listing date
- October 7, local time
- Additional strategy
- Trend-following across 21 futures markets
- Annual expense ratio
- 0.92%
Sources
Related news
SK chief says Honam chip project can start before power and water arrive
20 outage-prone financial firms spent less than 70% of security budgets
South Korea introduces smartphone checks for counterfeit K-brand products
Coupang to compensate customers, riders and restaurants after system outage
More than half of KDB small-business funding went to Seoul region
Samsung may cut smartphone production as rising memory costs erase profits
South Korean ship completes trial voyage through Arctic route
Energy leaders meet in Riyadh amid supply and shipping risks
South Korean freighter completes Arctic route test to Europe and back
South Korean freighter returns from Europe via Arctic route
South Korean container ship completes Northern Sea Route round trip
