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Direxion Files Plans to Introduce Another Bearish Bank ETF (FAZ, FAS, XLF)


Direxion, the firm behind the behind the infamous yet highly popular Direxion Daily Financial Bear 3X Shares (NYSE: FAZ), is looking to add its lineup of non-leveraged products and has filed plans with the SEC to possibly introduce the Direxion Daily Financial Bear 1X Shares.

The Direxion Daily Financial Bear 1X Shares would not be a direct equivalent to FAZ because the new ETF, assuming it comes to market, will seek daily inverse investment results that correspond to the Financial Select Sector Index, the same index tracked by the Financial Select Sector SPDR (NYSE: XLF).

FAZ and its bullish equivalent, the Direxion Daily Financial Bull 3X Shares (NYSE: FAS), track the Russell 1000 Financial Services Index. Direxion's filing didn't include a ticker for the new fund, but the firm did say the fund will trade on the New York Stock Exchange and have an expense ratio of 0.65%.

That's 30 basis points lower than what FAS and FAZ charge. The new Direxion fund could be a rival to the ProShares Short Financials (NYSE: SEF), which is an inverse, non-leveraged product. ProShares, the largest issuer of inverse and leveraged ETFs, also issues the ProShares Short KBW Regional Banking (NYSE: KRS), which is also a bearish, non-leveraged ETF.

Direxion, the second-largest sponsor of inverse and leveraged funds, has been looking to expand its non-leveraged offerings. The firm has introduced the the NASDAQ-100 Equal Weighted Index ETF (NYSE: QQQE) and the Direxion All Cap Insider Sentiment Shares (NYSE: KNOW), among others in the past year.


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