Direxion to Shutter 10 ETFs in April
The firm is closing and liquidating ETFs meant for sophisticated traders, with many of the funds focused on shorting individual stocks.
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The first day of spring isn’t until Friday, but one firm is already doing some seasonal cleaning.
Direxion is closing and liquidating 10 exchange-traded funds that just didn’t catch on. That might seem like a lot, but the company launched 25 ETFs last year and is currently prepping more. Product development has ramped up in the industry to what has become a ridiculous pace, as companies test out products for nearly anything and everything, including funds focused on single stocks, leverage or income. Choose your metaphor: there’s the classic spaghetti thrown at a wall; a handful of darts aimed at a dartboard; or fecundity across the animal kingdom.
Sorry to be a bummer here, but only one in 10,000 sea turtles that hatch are likely to make it to adulthood. Maybe ETF survival rates don’t look so bad.
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Last year, asset managers launched more than 1,000 US ETFs, nearly double the 584 that debuted in 2024, per a report from Morningstar. Of last year’s class, all but 150 ETFs were actively managed. Here’s a look at the biggest issuers of 2025:
- GraniteShares launched more than any other issuer at 71 ETFs.
- Themes was second at 63.
- Defiance was not far behind at 59.
Direxion, with its 25 new ETFs, clocked in at 10th. Meanwhile, 146 ETFs closed last year. The Direxion funds are scheduled to liquidate around April 17.
Not Enough Lifeboats: With the extreme pace of ETF launches across the industry, it seems all but certain that more will end up like Leonardo DiCaprio’s Jack Dawson at the end of Titanic (sorry if that’s a spoiler, but y’all have had 29 years to watch it). For Direxion’s part, the firm constantly evaluates its products to reflect what ETF traders need, chief product officer Mo Sparks. “The decision to close 10 ETFs is part of that ongoing review process and represents a small portion of our overall lineup,” he told ETF Upside in a statement from the company. “We remain focused on providing sophisticated traders with the right tools to navigate evolving market opportunities.”
