Direxion Offers ETFs With 300% Leverage

With the volatility of the stock market seemingly ever on the rise, perhaps now is a perfect time for the launch of 300% leveraged exchange-traded funds from Direxion, both on the long and the short side.

However, as Dow Jones notes, while they have the potential to deliver tremendous returns, they have an equal shot at big losses.

Certainly, the bets the Direxion funds will be taking are considerably larger than those by funds at Rydex Investments and ProShares, which offer ETFs with 200% leverage.

Direxion’s funds, which began trading on NYSE Arca on Wednesday, are linked to the Russell 1000 Index, the Russell 2000 Index, the Russell 1000 Energy Index and the Russell 1000 Financial Services Index.

Because people are having such a hard time obtaining credit today, noted Direxion Marketing Director Andy O’Rourke, the firm is hoping the funds will attract investors’ interest.