Leveraged Cybersecurity ETFs Are Debuting At A Dangerous Time

Summary

Direxion launched two leveraged cybersecurity ETFs this past week.

These ETFs may be debuting at a time when the popularity of cybersecurity stocks has already cooled and valuations are still very high.

History has taught us the dangers of investors choosing to chase past performance or chasing “hot” stocks.

It was probably just a matter of time before Direxion – one of the primary issuer of leveraged and inverse ETFs – jumped on the popularity of cybersecurity stocks. This past week, Direxion launched the Direxion Daily Cyber Security Bull 2X Shares ETF (NYSEARCA:HAKK) and the Direxion Daily Cyber Security Bear 2x Shares ETF (NYSEARCA:HAKD) options on the cybersecurity sector. But like many products that get launched after the initial popularity soars, the timing often proves to be a dangerous investor trap.

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