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Feelling Lucky? Try These New ETFs

You would think risk appetite would be declining right now, but fund company Direxion has just launched a new series of Exchange Traded Funds (ETFs) that allow you to bet three times the performance or three times the inverse of major sectors of the market.

Here's the funds:

Tied to Russell 1000 (large cap index)

Large Cap Bull (BGU), 3x performance

Large Cap Bear (BGZ), 3x inverse performance

Tied to Russell 2000 (small cap index):

Small Cap Bull (TNA), 3x performance

Small Cap Bear (TZA), 3x inverse performance

So if, for example, the Russell 1000 was up 2 percent, and you owned the Large Cap Bull, your profit would be 6 percent. Conversely, if the Russell 1000 was down 2 percent, and you owned the same fund, you lose 6 percent.

It works the same for the Bears in reverse. If the Russell 1000 was down 2 percent, and you owned the Large Cap Bear, you make 6 percent. But if the Russell 1000 was up 2 percent and you owned the same fund, you would lose 6 percent.

This is the first time a 3x performance ETF has been launched; there are already several 2x performance.

They have also announced that they will be launching Energy and Financial Bull and Bear ETFs, that will also allow you to bet three times the performance or three times the inverse of the Russell 1000 Energy and Financial Services sectors.

Feel like making a big bet?

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