Direxion also specializes in inverse ETFs - funds that are constructed by using a variety of derivatives with the intention of profiting from a decline in the value of the underlying benchmark. Because this is similar to holding various short positions, inverse ETFs are also called "short ETFs" and "Bear ETFs." Direxion's funds that seek to profit from declines are identified with "Bear" in the fund name; for example, "Direxion Small Cap Bear 3X Shares 2013 Russell 2000" (a fund which happens to be triple-leveraged as well as inverse).
Headquartered in Boston, Massachusetts, Direxion ETFs have expense ratios ranging from 0.35 to 0.95%, with an average of 0.89%.
|Figure 1: Direxion\'s top five largest funds by AUM. Information current as of Feb. 8, 2013.|
Guide To ETF Providers: EG Shares