ETFs

Lightly leveraged ETFs still cause concerns

Some analysts and regulators worry that Direxion’s new funds could burn some investors

Ben Johnson, Morningstar
Ben Johnson, Morningstar

Like a brewer selling a light beer, Direxion Investments is hoping its lightly leveraged exchange-traded funds will appeal to a wider audience than its more intense versions.

But the Financial Industry Regulatory Authority, Wall Street's self-regulator, and investment research firm Morningstar still view the funds as complex instruments that could trip up some investors.

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