TSMC Gets Single-Stock ETF as Direxion Funds Allow Leverage Bets

Direxion Funds has launched two exchange-traded products that focus on a single emerging-market stock — Taiwan Semiconductor Manufacturing Co. — allowing investors to make outsized bullish bets on it or take positions against the direction of the market.

The Direxion Daily TSM Bull 2X Shares will enable traders to magnify the moves in TSMC, the artificial-intelligence behemoth and the stock with the biggest weight in the EM benchmark, by 200% on a daily basis. The Bear 1X Shares ETF will seek to achieve inverse of the share’s daily change. Both funds open Thursday, according to Direxion.

“The stock is a major bellwether to both the Taiwan stock market and the broader emerging-market landscape,” said Ed Egilinsky, managing director at Direxion. “With our new ETFs tied to TSM, active traders will have the opportunity to take a short-term magnified bullish view or a non-leveraged bearish position.”

Single-stock ETFs are a recent but growing industry in the US ETF market but have largely been focused on the so-called Magnificent Seven including Apple Inc. and Nvidia Corp. But as the industry expands, emerging markets are becoming a viable hunting ground for short-term traders looking to ride on hot but volatile technology trends.

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