Direxion prop up leveraged ETF (FAS,FAZ) by reverse split.

Direxion Funds leading provider of leveraged Exchange Trade Funds (ETF’s) that intend to provide performance of 300% of underlying index that they track both on the long & short side, today “reverse split” two of its popular, 3 X financial ETF - FAS & FAZ.

FAS provides 3 X performance of Russell 1000 financial service index , where as FAZ provides inverse of 300% inverse/opposite of the same. At the peak of financial market crisis FAS traded as low as $ 2.39 and FAZ as high as 201.86 , these trading instruments were actively used by traders to bet on either side (buy/sell) of financial companies health without betting out an single stock/financial institution.

As these instruments became popular , they became one of the heavily traded entities in NYSE , in order to reduce the volatility in instruments , Dirxeion funds have adopted to prop up the price of these ETF’s by the way of “Reverse split”.

Today, both of these funds are trading in reverse split prices, FAZ underwent 1 for 10 & FAS 1 for 5. For detailed list of other Direxion’s 3 X leveraged ETFs visit : http://www.direxionshares.com/etfs

These instruments are only for active traders not for the faint of the heart, owning them for the long term would result in net loss. And fund objective clearly states “There is no guarantee the fund will meet its stated investment objective.”