Direxion, the company best known for its suite of leveraged and inverse ETFs, began the process of shutting down one of its few non-leveraged funds, the Airlines Shares ETF (FLYX) earlier this week, citing a lack of assets as the main culprit for the fund’s demise. The fund stopped trading on October 10th and over the next week the product will liquidate its portfolio of airline stocks before paying out to investors after that. The fund never really caught on with investors as the product had assets of less than $3 million and saw volume of roughly 800 shares a day over the past three months. Furthermore, at a 0.55% expense ratio, the product only generated a meager $16,500 for the company in fees, hardly enough to turn a profit for the ETF issuer. Thanks to this move, Direxion doesn’t have a single non-leveraged or inverse product in its lineup, suggesting [...] Click here to read the original article on ETFdb.com. Related Posts: Time To Buy The Airline ETFs? Checking In On The Airline ETFs: FAA vs. FLYX Direxion Launches Three New ETFs Tuesday’s ETF To Watch: Guggenheim Airline ETF (FAA) Three ETFs To Monitor As Hurricane Irene Wreaks Havoc
Direxion, the company best known for its suite of leveraged and inverse ETFs, began the process of shutting down one of its few non-leveraged funds, the Airlines Shares ETF (FLYX) earlier this week, citing a lack of assets as the main culprit for the fund’s demise. The fund stopped trading on October 10th and over the next week the product will liquidate its portfolio of airline stocks before paying out to investors after that. The fund never really caught on with investors as the product had assets of less than $3 million and saw volume of roughly 800 shares a day over the past three months. Furthermore, at a 0.55% expense ratio, the product only generated a meager $16,500 for the company in fees, hardly enough to turn a profit for the ETF issuer. Thanks to this move, Direxion doesn’t have a single non-leveraged or inverse product in its lineup, suggesting [...]
Click here to read the original article on ETFdb.com.
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