Fund provider Direxion announced recently that it will soon offer five new exchange-traded funds (ETFs), with two of them becoming available in December and the others becoming available in January.
Direxion All Cap Insider Sentiment Shares ETF and Direxion Large Cap Insider Sentiment Shares ETF, which are both based around stocks chosen from different Standard & Poor’s indices, will start trading in December, according to Reuters.
Andy O’Rourke, director of marketing at Direxion, informed the media outlet that both of the funds that will start trading in December will take long positions in stocks being purchased by fund insiders and short stocks being sold by these same officials.
The fund provider will then offer three ETFs in January which are based on reacting to volatility. The new financial instruments will increase their allocation to cash when the volatility in the underlying indexes surpasses a threshold level and put more money back into equities after falling below this threshold level, the media outlet reports.
ETFs can benefit investors by giving them easy access to diversification with low fees. Young investors planning for events such as retirement can benefit form researching these financial instruments.