Direxion Launches New Daily 2X Leveraged Metals and Mining ETF (MNM)

Rhea-AI Summary

Direxion has launched the Daily Metal Miners Bull 2X Shares ETF (Ticker: MNM), aiming for 200% of the daily performance of the S&P Metals and Mining Select Industry Index. This index includes U.S. companies involved in metal extraction such as aluminum, copper, and gold. With a recent $973 billion infrastructure plan, the metals and mining industry is poised for growth. As of August 31, 2021, the index constituents had a median market cap of $8 billion. Investors are warned of the risks associated with leveraged ETFs.

Positive

• Launch of the Daily Metal Miners Bull 2X Shares ETF, providing 200% daily exposure to the metals and mining sector.
• Potential for growth in the metals and mining industry due to a massive $973 billion infrastructure plan.

Negative

• High volatility and risks associated with leveraged ETFs which may lead to potential losses.
• Concentration risk due to investments in a single sector can increase overall volatility.

NEW YORK, Dec. 16, 2021 /PRNewswire/ -- Direxion announced today the launch of the Direxion Daily Metal Miners Bull 2X Shares (Ticker: MNM). The Fund seeks to achieve 200% of the daily performance of the S&P Metals and Mining Select Industry Index.

The S&P Metals and Mining Select Industry Index provides exposure to U.S. companies engaged in the extraction of metals and other natural resources. The metals and mining industry includes companies in the following sub-industries: aluminum; coal & consumable fuels; copper; diversified metals & mining; gold; precious metals & minerals; silver; and steel.

"The 5-year, $973B infrastructure plan provides a massive boost to government development. This includes transportation, roads, bridges, passenger and freight rail, public transit, EVs, the electricity grid, broadband and clean water," said David Mazza, Managing Director, Head of Product at Direxion. "As this development continues to evolve, along with an uptick in volatility, the metals and mining industry is one traders may want to consider."

Traders seeking to gain 200% daily exposure to metals and mining stocks, can access companies such as Freeport-McMoRan Inc (FCX), Nucor Corp (NUE), Alcoa Corp (AA) and Steel Dynamics Inc (STLD) and others through this leveraged metals and mining ETF ($MNM). For additional metals and mining stocks, see the table below.

As of August 31, 2021, the 29 constituents had a median total market capitalization of $8 billion, total market capitalizations ranging from $528 million to $53.3 billion, and were concentrated in the metals and mining industry, which is included in the materials sector. Top ten index holdings are as follows:

2X Metals and Mining ETF (Ticker: MNM) Index Holdings

Name	Ticker	Weight (%)
MP Materials Corp	MP	6.31
Freeport-McMoRan Inc	FCX	5.12
Reliance Steel & Aluminum Co	RS	4.90
Commercial Metals Co	CMC	4.89
Newmont Corp	NEM	4.72
Nucor Corp	NUE	4.64
Alcoa Corp	AA	4.60
Royal Gold Inc	RGLD	4.51
Hecla Mining Co	HL	4.49
Steel Dynamics Inc	STLD	4.45

Source: Source: Bloomberg Finance, L.P., S&P, as of 11.30.2021.

Like all leveraged ETFs, this Direxion ETF is 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 that this Fund will meet its objective.

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 $25.1 billion in assets under management as of September 30, 2021. 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 daily leveraged ETFs, go to www.direxion.com, or call us at 866.301.9214.

Leveraged ETFs are not suitable for all investors and should be utilized only by investors who understand the risks associated with seeking daily leveraged and inverse investment results, and intend to actively monitor and manage their investments. Due to the daily nature of the leveraged and inverse investment strategies employed, there is no guarantee of long-term inverse returns. Past performance is not indicative of future results.

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 Fund's prospectus and summary prospectus call 866-716-0735 or visit our website at direxion.com. A Fund's prospectus and summary prospectus should be read carefully before investing.

Direxion Shares Risks - An investment in the ETFs involves risk, including the possible loss of principal. The ETFs are non-diversified and include risks associated with concentration that results from an ETF's investments in a particular industry or sector which can increase volatility. The use of derivatives such as futures contracts and swaps are subject to market risks that may cause their price to fluctuate over time. The ETFs do not attempt to, and should not be expected to, provide returns which are a multiple of the return of their respective index for periods other than a single day. For other risks including leverage, correlation, daily compounding, market volatility and risks specific to an industry or sector, please read the prospectus.

Mining and metal companies can be significantly affected by international political and economic developments, energy conservation, the success of exploration projects, commodity prices, taxes and government regulations.

Distributor: Foreside Fund Services, LLC.

CONTACT:	James Doyle
	JConnelly
	973.850.7308
	jdoyle@jconnelly.com

 

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SOURCE Direxion

FAQ

What is the purpose of the <b>MNM</b> ETF launched by Direxion?

The MNM ETF aims to achieve 200% of the daily performance of the S&P Metals and Mining Select Industry Index.

What companies are included in the <b>MNM</b> ETF?

The MNM ETF includes companies such as Freeport-McMoRan Inc (FCX), Nucor Corp (NUE), and Alcoa Corp (AA).

When was the <b>MNM</b> ETF launched?

The MNM ETF was launched on December 16, 2021.

What is the median market capitalization of the <b>MNM</b> ETF's constituents?

As of August 31, 2021, the median market capitalization was $8 billion.

What risks are associated with investing in the <b>MNM</b> ETF?

Investing in the MNM ETF involves risks including potential loss of principal, high volatility, and sector concentration risks.