Direxion Unveils Berkshire Hathaway and Palantir Single Stock Leveraged and Inverse ETFs
BRKU, BRKD, PLTU and PLTD Join Existing Suite of 22 Single Stock Leveraged and Inverse ETFs
NEW YORK, Dec. 11, 2024 /PRNewswire/ -- Direxion, a leading provider of tradeable ETFs, today announced bringing two additional pairs of Single Stock Leveraged and Inverse ETFs to market. The four new funds allow active traders to obtain magnified, or inverse, exposure to the daily performance of the common stock of Berkshire Hathaway Inc., or Palantir Technologies Inc., through either the Direxion Daily BRKB Bull 2X Shares (Ticker: BRKU) and Direxion Daily BRKB Bear 1X Shares (Ticker: BRKD), or the Direxion Daily PLTR Bull 2X Shares (Ticker: PLTU) and Direxion Daily PLTR Bear 1X Shares (Ticker: PLTD).
Direxion is offering the first leveraged and inverse single stock funds on Berkshire Hathaway, allowing traders to react to Warren Buffet's guidance and sentiments. Furthermore, Palantir is one of the top-performing retail stocks in the market, as it continues to scale its business through partnerships, government contracts, and a growing commercial sector.
"Direxion's commitment to continuous innovation in the ETF industry is one of the many reasons I joined the team," said Direxion CEO, Douglas Yones. "I'm excited to see today's launches build on that legacy as we continue creating fresh, impactful ETF solutions for short-term traders."
As ground-breaking products built for active traders, Direxion's pairs of single stock leveraged and inverse ETFs are meant to be used for short-term trading purposes. Leveraged and inverse single stock ETFs should not be viewed as buy and hold investments, but rather trading tools for traders with a high-risk tolerance. In addition, unlike traditional ETFs, or even other levered and/or inverse ETFs, these ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification.
All Direxion leveraged and inverse ETFs are intended only for investors with an in-depth understanding of the risks associated with seeking leveraged investment results, and who plan to actively monitor and manage their positions. There is no guarantee these ETFs will meet their objective. Please visit the Direxion Leveraged and Inverse ETF Education Center, where you will find educational brochures, videos, and a self-paced online course to help you understand if leveraged and inverse ETFs – including single stock ETFs – are right for you.
About Direxion:
Direxion equips investors who are driven by conviction with ETF solutions built for purpose and fine-tuned for precision. These solutions are available for a broad spectrum of investors, whether executing short-term tactical trades, or investing in thematic strategies. Direxion's reputation is founded on developing products that precisely express market perspectives and allow investors to manage their risk exposure. Founded in 1997, the company has approximately $48.6 billion in assets under management as of September 30, 2024. For more information, please visit www.direxion.com.
There is no guarantee that the Funds will achieve their investment objectives.
For more information on all Direxion Shares ETFs, go to www.direxion.com, or call us at 866.301.9214.
An investor should carefully consider a Fund's investment objective, risks, charges, and expenses before investing. A Fund's prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a prospectus and summary prospectus call 866.476.7523 or visit our website at direxion.com. A Fund's prospectus and summary prospectus should be read carefully before investing.
Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock's performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock's performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock's performance increases, and the Bear Fund will lose money even if the underlying stock's performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in BRK/B or PLTR.
Financials Sector Risk — Financial companies may be materially impacted by many factors, including but not limited to, government regulations, economic conditions, credit rating downgrades, changes in interest rates and decreased liquidity in credit markets. Profitability of these companies is largely dependent on the availability and cost of capital and can fluctuate significantly when interest rates change.
Information Technology Sector Risk — The value of stocks of information technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation, and competition, both domestically and internationally, including competition from competitors with lower production cost.
Berkshire Hathaway Inc. Investing Risk — Issuer-specific attributes may cause an investment held by the Fund to be more volatile than the market generally. Berkshire Hathaway Inc. faces risks associated with: terrorism impacting its operating businesses; cybersecurity events; geopolitical events that cause loses to its business and the value of securities it owns; dependence on a few key people for investment and capital allocation decisions; among other risks.
Palantir Technologies Inc. Investing Risk — Issuer-specific attributes may cause an investment held by the Fund to be more volatile than the market generally. Palantir Technologies Inc. faces risks associated with: a limited number of customer accounts for a substantial portion of its revenue; the development and deployment of new technologies; reliance on or capability with third-party products and services; the ability to hire, retain, train and motivate qualified personnel and senior management; sales and operations; intense competition; among other risks.
Direxion Shares Risks – An investment in each Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund's investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund's other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning. Risks of the Funds include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Broadcom Inc. or Micron Technology, Inc. Investing Risk, Market Risk, Industry Concentration Risk, Cash Transaction Risk, Indirect Investment Risk, and risks specific to the technology sector and semiconductor industry. Additional risks include, for the Direxion Daily BRKB Bull 2X Shares and Direxion Daily PLTR Bull 2X Shares, Leverage Risk and Daily Correlation Risk, and for the Direxion Daily BRKB Bear 1X Shares and Direxion Daily PLTR Bear 1X Shares, Shorting or Inverse Risk as well as Daily Inverse Correlation Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of the Funds.
Distributor: ALPS Distributors, Inc.
CONTACT: Danielle Black, AD
Ditto Public Relations
direxion@dittopr.co
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