Direxion is stepping beyond its usual leveraged and inverse ETFs with a new lineup of six Defined Income Boost ETFs. These non-leveraged funds aim to generate income by writing call options on some of the market's most volatile stocks.
The new funds include:
- Direxion NVDA Defined Income Boost ETF (NVIB), tied to Nvidia Corp (NVDA)
- TSLA Defined Income Boost ETF (TSIB), tied to Tesla, Inc (TSLA)
- GOOGL Defined Income Boost ETF (GOIB), tied to Alphabet, Inc (GOOGL)
- META Defined Income Boost ETF (MEIB), tied to Meta Platforms, Inc (META)
- PLTR Defined Income Boost ETF (PLIB), tied to Palantir Technologies, Inc (PLTR)
- MU Defined Income Boost ETF (MUIB), tied to Micron Technology, Inc (MU)
Each fund tracks a published, rules-based Cboe index that aims to deliver a defined income stream while maintaining closer alignment with its underlying stock than traditional covered-call strategies.
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The launch reflects growing demand for income strategies tied to high-growth tech stocks that pay little or no dividends. Instead of relying on dividend distributions, these ETFs generate cash flow by systematically selling call options on stocks like Nvidia, Tesla, Alphabet, Meta, Palantir, and Micron.
The products also mark a strategic expansion for Direxion, which has traditionally been known for leveraged and inverse ETFs. According to the firm, the Defined Income Boost lineup applies the same derivatives expertise in a non-leveraged format, targeting investors who want exposure to some of the market's most closely followed growth stocks while potentially earning regular option premium income. Direxion said the six ETFs represent the first phase of what it expects to become a broader family of income-focused products.
