Direxion Targets Growth Stocks With New Income-Focused ETF Suite

The new suite, dubbed Defined Income Boost, covers six specific companies: Nvidia (NVIB), Tesla (TSIB), Alphabet (GOOGL), Meta (MEIB), Palantir (PLIB), and Micron (MUIB). These funds mark a departure for the firm, which is historically recognized for its leveraged and inverse trading products. Instead of leveraging market moves, this strategy uses a rules-based Cboe index to pursue a consistent income stream derived from derivatives rather than corporate dividends.

Mo Sparks, Chief Product Officer at Direxion, emphasized that the firm is applying its existing derivatives discipline to a non-leveraged framework. The funds intend to distribute payouts twice a month, though these are contingent on the performance of the underlying stock relative to the options sold. Because these are non-diversified funds concentrating on single issuers, they carry distinct risks, including potential loss of principal and performance variance compared to holding the underlying stocks directly.