Direxion's New ETFs Let Traders Supercharge Bets On Cisco And Qualcomm, With A Catch

For investors who prefer their tech plays with a dash of adrenaline, Direxion just served up four new ways to catch the waves. The ETF provider launched four new single-stock leveraged and inverse funds on Wednesday, focused on Cisco Systems CSCO and Qualcomm QCOM. But these are no ordinary ETFs, they’re designed for quick trades, quick brains, and even quicker appetites for risk.

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Here’s the new group:

• Direxion Daily CSCO Bull 2X ETF CSCL: Positive 200% bet on Cisco’s daily price performance.
• Direxion Daily CSCO Bear 1X ETF CSCS: Bearish 100% daily exposure in Cisco.
• Direxion Daily QCOM Bull 2X ETF QCMU: 2x daily bullish bet on Qualcomm.
• Direxion Daily QCOM Bear 1X ETF QCMD: 1x daily bearish exposure to Qualcomm.

Each of the ETFs carries an expense ratio of 0.97%.

With these, investors can go long or short on two giants of the digital infrastructure space, enterprises thriving on growth in AI, 5G, and cloud networking.

Douglas Yones, CEO of Direxion, said that these ETFs will “empower traders to capitalize on short-term movements in these pivotal technology stocks, reflecting our commitment to providing targeted tools for dynamic market engagement.” 

But a word of caution: single-stock leveraged ETFs are the fiscal version of a high-speed chase. There’s no diversification buffer, and the daily reset assures compounding will work for or against you.

Even within leveraged products, such ETFs are niche instruments for savvy market players who keep positions under close scrutiny and appreciate the mathematics (and mayhem) of volatility.

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