Direxion Launches 2X Gold Miner ETFs : Direxion, the Newton, Mass.-based firm specializing in leveraged and inverse exchange-traded funds, launched a bull-and-bear pair of double-exposure ETFs focused on gold miners, jumping into a pocket of the investment universe that has been popular amid concerns that the Federal Reserve’s monetary policy will debase the dollar.The Direxion Daily Gold Miners Bull 2x Shares (NYSEArca: NUGT) and the Direxion Daily Gold Miners Bear 2x Shares (NYSEArca: DUST) are based the NYSE Arca Gold Miners Index and both have annual expense ratios of 0.95 percent, the price it charges on all its inverse and leveraged products.
Gold hit an all-time high this week, with investors buying the precious metal as a safe haven at a time of dollar weakness. The Fed’s recent decision to spend $600 billion over eight months to buy Treasurys to try to stimulate the economy—essentially with borrowed money—has fueled views that gold and other precious metals will hold their value if and when an inflation spike takes shape.
“We felt like it was time to get the gold miners rolling,” Andy O’Rourke, Direxion’s director of marketing, said in a telephone interview. “Traders are wondering whether gold has gone far enough or if it can still go higher, so these tools are arriving at the right time.”
Direxion’s leveraged products are rebalanced daily, meaning return patterns can vary significantly from underlying indexes. For this reason, such products are considered appropriate only for traders and other sophisticated investors. Read More www.indexuniverse.com ... For the latest updates PRESS CTR + D or visit Stock Market news Today
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