On Wednesday, Direxion’s library of thematic ETFs expanded with the release of the Direxion Daily META Bull 2X Shares (METU) and Direxion Daily META Bear 1X Shares (METD). These funds are the last additions to Direxion’s suite of leveraged and inverse ETFs for the “Magnificent Seven.”
“Although Meta has been around for over two decades, the company continues to evolve and innovate, cementing itself as a lasting leader in the tech space,” noted Edward Egilinsky, Direxion’s managing director. “But that’s not without periods of short-term ebbs and flows, of which traders look to take advantage.”
Bullish on Meta
As the bullish investment option, METU aims to provide investors with 200% of daily performance results of the common shares of Meta Platforms Inc. (META). To do so, the fund invests in a mix of META securities. It also invests in instruments such as swap agreements and options.
Bearish Options
Meanwhile, investors bearish on Meta’s performance may opt to look at METD. The fund uses swap agreements and options to give investors inverse results to Meta’s daily performance. Both funds have a net expense ratio of 1.07%.
METU and METD both intend to pursue their investment objectives regardless of the overall market momentum META may be experiencing. When the markets close, both funds will see their portfolios rebalanced to closer position toward the overall investment strategy.
Each fund can be uniquely beneficial to experienced investors who are confident in their understanding of Meta’s performance highs and lows. Direxion notes that investing within METU or METD is not equivalent to direct investment in Meta’s stock.
“With the launch of METU and METD, Direxion is the only provider to offer single-stock ETF pairs for all of the Magnificent Seven,” Egilinsky added. “Traders may respond tactically to headline news, earnings reports, and market sentiment for the Magnificent Seven on an individual basis via our single-stock suite, or collectively with our recently launched QQQU and QQQD.”
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