Direxion Files Plans For IndiaShares Energy ETF

Direxion, the eleventh-largest U.S. ETF issuer and the firm most known for its double- and tripled-leveraged funds, has filed plans with the SEC to introduce the IndiaShares Energy & Utilities Shares ETF. The filing did not include a ticker or expense ratio for the new ETF. The ETF will track an index comprised of 30 India-based energy firms such as coal miners, refiners and oil exploration and production firms. The companies are all listed on the the Bombay Stock Exchange or the National Stock Exchange. The index will be rebalanced on a quarterly basis. It should be noted that the new Direxion ETF will not invest in equities, but “intends to invest in swaps and other types of derivative instruments that have economic characteristics that are substantially identical to the economic characteristics of the securities that comprise the Index, including swaps on the Index and/or the securities that comprise the Index. The Fund also may invest in swaps on funds that seek to replicate the performance of the Index or directly in securities of such funds,” according to the filing. At the end of April, Direxion issued 42 ETFs with almost $6.5 billion in assets under management. The firm currently issues two India-specific ETFs, the Direxion Daily India 2X Bull Shares

and the Direxion Daily India 2X Bear Shares

.