The Funds track indices in the newly launched S&P Dynamic Rebalancing Risk Control Index Series and seeks to better control risk in equity investments.
The Funds follow a rules-based investment approach to determine equity exposure and operate to reduce exposure to equities during periods of higher overall market volatility as well as raising during periods of a more stable market environment.
Each Fund has a target volatility level for its corresponding index. The Funds are structured for quick and frequent adjustments on a daily basis, as per the methodology.
Direxion managing director Ed Egilinsky said that the new Funds allow the equity investors to mitigate risk.
"Periods of higher than average market volatility tend to coincide, with potentially adverse equity markets, while periods of below average market volatility tend to represent a more stable environment and a greater likelihood of favorable equity market conditions," Egilinsky added.
