Direxion launches ETFs offering 200% bullish and bearish exposure to TIPS

Direxion has launched two new ETFs offering 200% bullish and bearish exposure to TIPS.

the Direxion Daily TIPS Bull 2X Stock (IPL) and the Direxion Daily TIPS Bear 2X Stocks (TIPD) listed on the NYSE on April 7, each with an expense ratio of 107 basis points.

According to a company statement.

TIPS are securities issued by the US Treasury that are designed to provide inflation protection to investors. TIPS are income-generating instruments whose interest and principal payments are adjusted for inflation, making them very attractive in the current environment.

“After decades of virtually non-existent inflation, the prices of everything from cars to computers have surged in recent months,” David Mazza, managing director and chief product officer at Direxion, said in a statement.

“TIPL and TIPD allow traders to take amplified bullish or bearish positions in the US TIPS market,” Mazza added.

Like all leveraged ETFs, these new ETFs offered by Direxion are intended only for investors with a thorough understanding of the risks associated with seeking leveraged investment results and who plan to actively monitor and manage their positions, according to a statement from the firm.

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