Direxion has released three-times leveraged short-term Treasury funds to its line up of ETFs on NYSE Arca in the US.
The two DirexionShares ETFs provide leveraged bull and bear exposure to the NYSE Arca Current 2-Year US Treasury index and are designed to return 300% of the benchmark's daily performance.
The firm says these funds are the only 3x daily leveraged ETFs that provide single-security exposure to the current 2-Year US Treasury note.
However, Direxion highlights the ETFs are intended for use by sophisticated investors who are able to actively monitor and manage their positions.
For example, advisers and institutional investors use these types of funds to hedge positions in their current portfolios, while others use the funds to take advantage of volatility in the market.
The firm adds there is no guarantee the funds will achieve their objective of delivering three times the performance, or inverse return, of the underlying benchmark.
DirexionShares president Dan O'Neill says: "The yield on the 2-Year Treasury is historically highly correlated to the Federal funds rate, which many sophisticated investors are currently anticipating movement in due to changing inflation expectations."
He adds these two ETFs therefore provide tools for investors as they prepare for the Federal Reserve to act.
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