The latest batch covers four names across three market segments – semiconductors (ASML, Marvell), Chinese e-commerce (Alibaba), and digital finance (SoFi) – all loosely unified under what Direxion calls “the digital economy.” Let's take them one by one.
ASML (ASMU) offers 2X daily bull exposure to the Dutch lithography giant that is, by most accounts, the single most critical bottleneck in the global semiconductor supply chain. If you believe the AI capex cycle still has legs and that advanced chip fabrication is destiny, ASMU gives you a way to express that view with maximum conviction (and maximum risk). It's worth noting that Leverage Shares already had a 2X Long ASML Daily ETF (ASMG) on the market, so Direxion is playing catch-up here rather than breaking new ground.
Alibaba (BABU) provides leveraged exposure to China's e-commerce titan, a stock that has been a rollercoaster for investors navigating regulatory crackdowns, geopolitical tensions, and periodic bouts of AI-driven optimism. For traders who want to make a directional bet on Chinese tech sentiment, BABU is the instrument. The ticker is quite something too: it reads like a term of endearment, which is arguably the last thing you should feel toward a 2X leveraged product on a Chinese ADR.
Marvell Technology (MRVU) targets the semiconductor and data infrastructure company that has positioned itself as a key player in custom silicon for data centres and AI networking. Marvell has carved out a niche alongside Broadcom in the custom chip space, and MRVU gives traders a high-octane way to bet on that thesis.
SoFi Technologies (SOFA) rounds out the quartet with leveraged exposure to the digital finance platform. The ticker, SOFA, is a masterclass in ETF naming. Nothing says “high-conviction fintech trade” quite like naming your product after a piece of furniture.
Mo Sparks, Direxion's Chief Product Officer, framed the launches in predictably bullish terms: “These companies sit at the core of the digital economy, from the chips and networks powering AI and cloud computing, to the platforms enabling global e-commerce and digital finance.”
Fair enough. But the real story here isn't about any individual product; it's about the trajectory of the single-stock leveraged ETF category itself. When Direxion and its competitors first started rolling these out, they were curiosities. Now, with 55 products in Direxion's range alone, they've become a full-blown ecosystem spanning technology, energy, aerospace, automotive, online commerce, and crypto-adjacent businesses.
The demand clearly exists. Retail traders and short-term speculators want surgical, amplified exposure to individual names without the complexity of options or the margin requirements of leveraged positions in the underlying stocks. These ETFs deliver that in a wrapper that trades like any other equity.
As always with leveraged single-stock products, the fine print matters. These are designed for daily holding periods. The compounding effect of daily rebalancing means that returns over periods longer than a single day can diverge significantly from 2X the underlying stock's return, particularly in volatile markets. They are trading instruments, not investments. Direxion says as much in its own materials.
For sophisticated traders with strong convictions and tight risk management, these products serve a purpose. For anyone else, they remain the financial equivalent of handing car keys to someone who just passed their driving test and saying, “Here, try the Lamborghini.”
The leveraged single-stock ETF machine keeps humming along. At 55 funds and counting, the question is no longer whether the category has staying power. It's which stock gets the 2X treatment next.