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Dice from Direxion

Picture of Bernie Thurston

USA

More gambling instruments from Direxion

Leveraged and inverse specialist Direxion is pumping out four more items.

  • Direxion Daily S&P 500 High Beta Bull 3x Shares ETF (HIBL) – 1.12%
  • Direxion Daily S&P 500 High Beta Bear 3X Shares (HIBS) – 1.07%
  • Direxion Daily Dow Jones Internet Bull 3X Shares (WEBL) – 1.17%
  • Direxion Daily Dow Jones Internet Bear 3X Shares (WEBS) – 1.07%

They all use swaps to achieve 3x the daily movement of their various indices. As always, potential investors should understand these funds only give 3x the performance on a daily basis. Because of the compounding of the daily reset function, the funds go to zero over the long term and the +/- products don’t hedge against each other.

 

Analysis – sick of self-righteousness over L&I ETFs?

Leveraged and inverse ETFs provoke a lot of self-righteous sanctimony. They seem to be one of those things that you can criticise, like smoking breaks, in a corporate setting without having to go out on a limb and face career risk. 

 

Besides being entirely uninteresting, the L&I smug cloud is also somewhat hypocritical. Do the people criticising L&I ETFs throw the same pies at CFDs or spread betting, which are worse? Do they criticise margin trading, which is again worse as you can lose more money than you have? No of course not. Next.

 

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Bernie Thurston

Bernie Thurston is the founder and CEO of Ultumus, a leading provider of ETF and index data, calculation, and workflow solutions. With over 20 years of experience in financial technology, Bernie has been at the forefront of index and ETF innovation since 2003.

His finance career began at Markit, where as Managing Director for Equities he designed and developed products for index and ETF composition and dividend forecasting from 2003 to 2011. He then founded and led DeltaOne Solutions as Managing Director, building it into a global provider of index and ETF trading data and technology services. The company managed over 100,000 multi-asset class products before being acquired by Markit in 2015.

Following the acquisition, while working for an ETF issuer, Bernie identified fundamental issues in how index and ETF data was represented across the industry. This led him to found Ultumus in 2016, building solutions for ETF primary market operations. Under his leadership, Ultumus has grown into a market leader serving major financial institutions globally, with its ETF Order Management System (OMS) supporting create and redeem workflows worldwide and its PCF platform calculating and distributing portfolio composition files for ETF issuers across every major market.

Bernie sold Ultumus to SIX Group in 2021, where it continues to expand across Europe, North America, and Asia-Pacific. Known for building lasting teams and leveraging cutting-edge technology, Bernie is focused on establishing Ultumus as the backbone of the global index and ETF industry through standardisation and automation.

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