3 New ETFs For The Timid Investor
Direxion, one of the largest issuers of leveraged and inverse ETFs, has added three new products to its lineup.
All three ETFs track indexes created by independent research firm Value Line. The ETFs will use Value Line's well-known price stability, timeliness, financial strength and safety ranks to identify high dividend stocks in small-, mid- and large-cap sectors.
Value Line's unique and time-tested research, coupled with Direxion's ETF platform, offers investors access to top tier strategies in an easy to understand ETFs.
According to Brian Jacobs, president of Direxion Investments: "These three ETFs give conservative and income-oriented investors the ability to utilize Value Line's popular ranking systems to potentially improve their risk-adjusted returns."
Highlighted below are the new ETFs from Direxion:
The Direxion Value Line Mid and Large Cap High Dividend ETF (NYSE: VLML), which is made up of 50 mid- and large-cap securities selected based on Value Line ratings.
The portfolio is distributed across 10 sectors with materials at 17 percent and financials at 16 percent the most heavily weighted. The top individual holdings include HollyFrontier Corp (NYSE: HFC) with a 2.3 percent holding, Domtar Corp (NYSE: UFS) making up 2.28 percent and Tupperware Brands Corp (NYSE: TUP) at 2.26 percent.
The ETF began trading on March 11 at $25/share, and has an expense ratio of 0.58 percent.
The Direxion Value Line Small and Mid Cap High Dividend ETF (NYSE: VLSM) is composed of 50 small- and mid-cap companies across 10 sectors, with financials at 44 percent and materials at 13 percent of the portfolio.
The top individual holdings include CVR Partners LP (NYSE: UAN) at 2.7 percent, UFS at 2.3 percent and TUP totaling 2.3 percent. VLSM also began trading on March 11 at the $25 area, and has an expense ratio of 0.58 percent.
The Direxion Value Line Conservative ETF (NYSE: VLLV) provides investors exposure to 140 companies, which Value Line has identified as having a high safety rank and will weather an economic downturn better than their peers.
The portfolio is diversified across 10 sectors, with health care at 19 percent and consumer staples at 17 percent. The top individual holdings include International Flavors & Fragrances Inc. (NYSE: IFF) with a 0.84 percent holding, Cognizant Technology Solutions Corp (NYSE: CTSH) making up 0.83 percent and Apple Inc. (NASDAQ: AAPL) with 0.82 percent.
The ETF opened for trading on March 11 and has an expense ratio of 0.58 percent.
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