Direxion looks to ride SpaceX wave with bear ETF
The new offering joins Direxion’s SpaceX bull ETF in the provider’s lineup.
Direxion has launched its Daily SpaceX Bear 2X ETF (Ticker: LOFD) Thursday, as the ETF provider looks to build out its offerings themed around Elon Musk’s space exploration company.
The launch of LOFD follows the launch of Direxion’s Daily SpaceX Bull 2X ETF (Ticker: LOFF) on June 15, just a few days after SpaceX’s much-hyped and eagerly-anticipated IPO.
The LOFD ETF seeks daily investment results, before fees and expenses, of 200% of the inverse (or -200%) of the daily performance of SpaceX, according to Direxion.
“A complete toolkit enables traders to act on conviction in either direction,” said Mo Sparks, chief product officer at Direxion, in a statement. “LOFF gave them a way to express the bull case on SpaceX. LOFD adds the bear side, and a way to hedge, arriving as the stock heads into a stretch of closely watched catalysts.”
Direxion also offers bull and bear ETF themed around Elon Musk’s electric vehicle giant Tesla – the Daily TSLA Bull 2X Shares (Ticker: TSLL) and the Daily TSLA Bear 1X Shares (Ticker: TSLS).
SpaceX’s much-hyped and eagerly-anticipated public offering was the biggest IPO of all time and the company’s valuation at the end of its first day of trading on June 12 was over $2 trillion. The mega-IPO sparked a flurry of activity in the ETF industry, with the company being fast-tracked for inclusion onto the Nasdaq 100 and other major equity indices.
The space exploration company reported its first earnings as a public company earlier this week, posting impressive topline numbers. SpaceX’s massive spending on AI, however, weighed heavily on its stock in the wake of its earnings report. However, the stock rallied to end Thursday’s session up more than 6%. SpaceX shares are down more than 23% since the company’s IPO.
