Direxion Announces Reverse Splits For 6 ETFs

By Tom Lydon: The recent market volatility has given traders a chance to profit from market swings with leveraged and inverse exchange traded funds. However, these high-octane ETFs can magnify losses as well, which is why they’re designed for day traders rather than buy-and-hold investors.

By Tom Lydon: In a break from its normal product line, Direxion, an exchange traded fund provider known for its leveraged and inverse products, recently launched two new “smart-beta” insider sentiment ETFs.

By Tom Lydon: Moving into emerging market equities space, VelocityShares, an exchange traded note provider known for its inverse and leveraged futures-related products, launched three exchange traded funds that track developing economies.

Ron Rowland submits:EDZ Reverse Split: The Direxion Daily Emerging Markets Bear 3x Shares (EDZ) (launch article) will have a 1:10 reverse split as of today’s close with trading at the post-split price to commence on Thursday (3/4/10).

Dan Pritch submits: I couldn’t help but notice the press release yesterday on the reverse splits announced for 4 more leveraged ETFs:

By Tom Lydon: ProShares, an alternative exchange traded fund provider known for its inverse and leveraged products, launched a new geared long-term Treasury ETF, extending its current line of inverse Treasury funds as the investments attract greater attention on the heels of rising interest rates.

By Tom Lydon: Direxion, a prolific leveraged and inverse exchange traded fund provider, has filed to introduce seven equities-based ETFs based on quantitative strategies and changes in market volatility. The ETFs further the trend toward move “active” strategies in some of the new ETFs, rather than passive, index-based approaches. Each fund will have an expense ratio of 0.65%. According to the filed paperwork, the new funds include:

By Tom Lydon: Rounding out its line of leveraged exposure to Brazilian and South Korean markets, Direxion has launched two inverse exchange traded funds to help traders capitalize on any downside movements.