Direxion, a leading $100 billion derivatives-based Exchange-Traded Fund (ETF) provider, has filed for over 70 new funds simultaneously, aiming to capitalize on a potential market rebound despite concerns over industry saturation and investor fatigue.
The New York-based firm submitted documents to the U.S. Securities and Exchange Commission (SEC) to introduce a series of inverse and leveraged ETFs—the largest filing ever made by an asset manager.
This record-breaking submission comes as bullish day traders suffer losses following the S&P 500’s correction phase. Assets under management (AUM) for leveraged ETF issuers have dropped by 18% since the market peak in February.
Although Direxion may not launch all the proposed products, the extensive filings allow the company to gauge investor interest. Derivatives-based ETFs have grown significantly since 2019 when U.S. regulators eased restrictions on launching new funds.
While retail interest in less popular stocks is uncertain, leveraged ETFs have amassed nearly $106 billion in the U.S. and attracted around $17 billion in inflows over the past year. However, these products also carry high risks, as they can amplify losses during market downturns.
