Direxion Shares ETF Trust - Direxion MSCI Defensives Over Cyclicals ETF

RWDC tracks an index of US large-cap stocks with leveraged (1.5x) exposure to five defensive sectors and short (-0.5x) exposure to five cyclical sectors.

The financial crisis over a decade ago certainly put the big hurt on real estate as exorbitant valuations fed into inflated loan-to-value ratios that helped spur the mortgage crisis, particularly when it came to subprime lending.

Will a Faltering Real Estate Sector Spell Doom for Cyclical Equities?

It seems like in today’s raucous markets, there are fewer and fewer places to turn to for safety. Even gold lately has been correlating with the fall in stock prices along with its digital counterpart—Bitcoin.

All the Glitter in Safe Havens Isn’t Always Gold

Direxion Shares ETF Trust - Direxion MSCI Cyclicals Over Defensives ETF

Right now, it’s all about defense–from the coronavirus spreading, March Madness basketball strategies–seems like it’s defense, defense, defense.

Are Investors Paying Too Much for Defense in Today’s Market?

Direxion Russell 1000 Value Over Growth ETF

As Treasury yields fall to new lows, an inverted yield curve, which can indicate that a recession could be forthcoming, is reentering the current financial vernacular once again and sparking fears in the bond markets. This, in turn, could spark a move into more value-oriented equities in addition to the safety of government bonds.

This Recession Signal Could Set Up Trade for Value

Coronavirus fears continue to rack the markets as the Dow Jones Industrial Average took another one on the chin with a second straight losing session, causing investors to dial up the defense with safe haven assets like bonds.

Investors Dial Up the Defense as Coronavirus Fears Persist

With the coronavirus showing its tangible effects on the announcement of Apple struggling to meet its revenue projections for the fiscal second quarter due to weakened sales in China, a sharp shift to value investing might be expected.

Don’t Expect a Sharp Shift to Value Just Yet

In an effort to contain the coronavirus outbreak, the World Health Organization deemed the virus a global health emergency, which comes after the U.S. confirmed its first case of human-to-human transmission. This virus has already killed as many as 170 people in China, and has spread to 18 countries.

Will Investors Get More Defensive After WHO Declares Coronavirus a Global Emergency?

The risk-on that started 2020 took a 180-degree turn following the coronavirus outbreak as of late that has been roiling the markets with volatility.

Will Defense Equities Continue Being Boosted By Coronavirus Outbreaks?

Financial giant J.P. Morgan kicked off earnings season with a bang after it crushed analyst expectations with a strong showing from its trading operations in the fourth quarter.

Is Value the Best Option as Earnings Season is Underway?

A persisting story in the extended bull run is whether growth stocks have performed their swan song and value is ready to take the lead.

Is an Overvaluation in Growth Allowing Opportunities for Value Investors?

Geopolitical risks from a U.S.-Iran conflict can put investors in a state of unease, and when that happens many market experts believe the best strategy to combat uncertainty is to get on the defensive.

Defensive Moves Are the Best Option in a Market of Uncertainty

Direxion Shares ETF Trust - Direxion MSCI Developed Over Emerging Markets ETF

Direxion Msci Emerging Over Developed Markets ETF

Direxion Russell 1000 Growth Over Value ETF

Direxion Shares ETF Trust - Direxion FTSE Russell International Over US ETF

Direxion Russell Small Over Large Cap ETF

Direxion Shares ETF Trust - Direxion FTSE Russell US Over International ETF

The markets, at times, exhibit uneven performances, and investors have been able to capitalize on the disparate returns in varying segments through ETFs that incorporate a relative weight strategy. “It really builds upon common macro themes that investors utilize for a long time – I believe value is going to outperform growth, small-cap is going [.

Relative Weight ETFs Help Investors Better Navigate Macro Themes

Overpriced growth equities could be a risk heading into the final market sessions of 2019, according to global investment firm Morgan Stanley.

Are Growth Equities Too Risky in the Current Market Environment?

WisdomTree Barclays Yield Enhanced U.S. Aggregate Bond Fund

ProShares Short QQQ

VanEck Inflation Allocation ETF

Invesco S&P 500 High Dividend Low Volatility ETF

iShares Edge MSCI Min Vol USA ETF

Invesco S&P SmallCap Low Volatility ETF

Fortunately, that objective is easily met with an array of exchange traded funds (ETFs).

7 of the Best ETFs for Downside Protection

The capital markets typically view defensive equities as a strategy when investors play not to lose as opposed to simply playing to win. The S&P 500 reached a record high in Monday’s trading session, but it’s not growth-oriented, cyclical equities leading the index, but defensive equities.

Defensive Equities Are Leading the S&P 500 to Its Record Highs

A lot of talk in the capital markets is the exodus of growth strategies and the comeback of value, but Goldman Sachs is still touting growth, but with a unique twist–growth via equities that have the propensity for stable earnings.

News for Direxion Shares ETF Trust - Direxion MSCI Defensives Over Cyclicals ETF ETF (RWDC)