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ISE ETF Ventures today announced that it has licensed the ISE-REVERE Natural Gas Index (index ticker: FUM) to Direxion Investments for a new exchange-traded fund (ETF) that seeks to achieve 300 percent of the inverse of FUM’s daily performance. The ETF launched on December 3 on NYSE Arca.
“The current global economic climate has forced many investors to closely monitor how different commodities perform on a daily basis,” said Kris Monaco, Head of ISE ETF Ventures. “We are pleased that Direxion has chosen the ISE-REVERE Natural Gas Index to provide investors with another product that helps tailor their exposure to the natural gas sector.”
FUM comprises a basket of twenty-six companies that derive significant revenues from the exploration and production of natural gas. Prospective constituents are ranked based on four separate criteria, which include the stock’s performance over several fundamental indicators and its overall correlation to natural gas spot prices. These scores are added to achieve a final ranking. Chesapeake Energy Corp. (ticker: CHK), Apache Corp. (ticker: APA), Matador Resources Co. (ticker: MTDR), and Swift Energy Co. (ticker: SFY) are four of the index’s holdings.
“We are pleased to expand our partnership with ISE ETF Ventures and to use the ISE-REVERE Natural Gas Index for this natural gas leveraged bear ETF,” said Sylvia Jablonski, Managing Director at Direxion. “Pairing this unique index with a leveraged ETF offers investors an added level of flexibility for managing a well-rounded portfolio.”
Direxion also licenses the ISE Cyber Security® Index (index ticker: HXR) as the underlying for leveraged ETFs covering the growing cyber security sector. For more information about ISE ETF Ventures’ index creation and support in launching new exchange-traded products (ETPs), please visit www.ise.com/etfventures.
