Direxion Files for El Niño and La Niña Prediction-Market ETFs

Direxion has filed for two actively managed ETFs using prediction markets to trade weather and climate outcomes associated with El Niño and La Niña. The Direxion El Niño ETF would emphasize events linked to warmer conditions and heavy rainfall, while the Direxion La Niña ETF would focus on drier conditions and increased Atlantic hurricane activity. Both would gain exposure to event contracts covering rainfall, snowfall, hurricanes, temperature records, droughts and wildfires, primarily through total return swaps. Contracts would be rolled as events approach settlement, with certain exposure available through Cayman subsidiaries capped at 25% of assets.