ETF Headlines
For an intro into Alternative ETF Strategies, Jules Staniewicz writes an informative article which can be found here.
Direxion, a leader in alternative investment solutions, is making modifications to their lineup of “buy and hold” alternative strategies, effective February 1, 2012, including changing the benchmark index for their commodity fund to the Auspice Broad Commodity Index, as a way to improve the Fund’s risk/return profile.
This long/flat, rules-based commodity index is designed to provide investors with the opportunity to take advantage of rising prices on certain commodities, while simultaneously assuming a flat position (cash) in other commodities that are experiencing a downward trend.
The Auspice Broad Commodity Index has a number of attributes that differentiate it from other commodity index strategies including; the ability to adjust positions intra-month, a monthly rebalance process that assesses volatility levels as a means to control risk, and a focus on shorter term trends to be more responsive. It also incorporates a smart contract roll process that takes into account contago and backwardation.
To reflect the change in its index and strategy, the Fund has been renamed the Direxion Indexed Commodity Strategy Fund. Also effective February 1, 2012, the Fund’s annual incurred expenses will decrease.
Also effective February 1st, a number of other modifications will be made to Direxion’s lineup of alternative “buy and hold” mutual funds, including name changes, fee reductions and share class restructuring. The following table illustrates the name and fee changes:
