Direxion Launches Three 2X Shares; AdvisorShares Debuts Active Dividend Fund
July 31 2014 - 9:00AM
ETFDB
This week, Wall Street digested the latest U.S. GDP data, which
came in at a seasonally adjusted annual rate of 4.0% in the second
quarter. For the first half of 2014, the economy managed to eke out
positive growth, expanding at a 0.9% pace [see How Well Do
Defensive ETFs Actually Work?].
On the earnings front, Lorillard, Phillips 66, Waste Management,
Reynolds American, and UPS reported worse-than-expected results,
while American Express, Pfizer and Merck managed to beat analyst
expectations.
In ETF news, Direxion launched three new 2x bull funds, while
AdvisorShares rolled out its new actively managed dividend
fund.
Behavioral Finance Behind New Dividend ETF
AdvisorShares debuted its Athena High Dividend ETF (DIVI),
which is actively managed by AthenaInvest Advisors, LLC. The
managers use a behavioral finance approach to identifying
securities for DIVI’s portfolio. Stocks are screened and selected
using the Portfolio Manager’s patented research. The research
measures behavioral factors of active equity fund investment
managers (strategy, consistency and conviction) and identifies
stocks that are held in the top relative weight positions of
their portfolios.The selected securities are then dividend
weighted.
Commenting on the new fund, Noah Hamman, chief executive of
AdvisorShares, stated: “The need for shareholder yield is well
known, however, most equity dividend funds focus on dividends first
and stock selection second. DIVI aims to provide high yield to
investors while taking a patented behavioral approach to stock
selection. We feel many investors are seeking high income with less
exposure to credit and interest rate risk, and DIVI looks to
provide an established investment approach to selecting stocks with
the additional benefits of a high yielding dividend income
strategy. We believe DIVI, with its active ETF structure, is
positioned to present a compelling single investment diversifier
for investors and advisors to consider.”
Three New Bull Shares
Direxion introduced three new 2x leveraged funds:
- Daily 7-10 Year Treasury Bull 2x Shares (SYTL) offers 200%
exposure to the NYSE 7-10 Year Treasury Bond Index, which is a
multiple-security fixed income index that aims to track the total
returns of the intermediate 7 to 10 year maturity range of the U.S.
Treasury bond market. The fund charges 0.60%.
- Small Cap Bull 2x Shares (SMLL) offers 200% exposure to the
Russell 2000 Index, which measures the performance of the
small-cap segment of the U.S. equity universe. The fund charges
0.60%.
- Daily Mid Cap Bull 2x Shares (MDLL) offers 200% exposure to the
S&P Mid Cap 400 Index, which measures the performance of
the mid-cap segment of the U.S. equity universe. The fund charges
an expense ratio of 0.60%.
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Disclosure: No positions at time of
writing.
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