The Direxion MSCI Developed Over Emerging Markets ETF (RWDE) offers a unique approach to equity investing by tracking the MSCI EAFE IMI - Emerging Markets IMI 150/50 Return Spread Index. With approximately $0.01 billion in assets under management and an expense ratio of 0.53%, RWDE seeks to capture the performance of a portfolio that is 150% long in developed markets (MSCI EAFE IMI Index) and 50% short in emerging markets. This ETF provides investors with a tool to express a view on the relative performance of developed versus emerging market equities.
Direxion MSCI Developed Over Emerging Markets ETF (RWDE) ETF — Price, Holdings & Analysis
The Direxion MSCI Developed Over Emerging Markets ETF (RWDE) offers a unique approach to equity investing by tracking the MSCI EAFE IMI - Emerging Markets IMI 150/50 Return Spread Index. With approximately $0.01 billion in assets under management and an expense ratio of 0.53%, RWDE seeks to capture the performance of a portfolio that is 150% long in developed markets (MSCI EAFE IMI Index) and 50% short in emerging markets. This ETF provides investors with a tool to express a view on the relative performance of developed versus emerging market equities.
ETF Overview
The investment seeks investment results, before fees and expenses, that track the MSCI EAFE IMI - Emerging Markets IMI 150/50 Return Spread Index (the "index"). The fund, under normal circumstances, invests at least 80% of its net assets (plus borrowing for investment purposes) in securities that comprise the Long Component of the index or shares of exchange-traded funds ("ETFs") on the Long Component of the index. The index measures the performance of a portfolio that has 150% long exposure to the MSCI EAFE IMI Index (the "Long Component") and 50% short exposure to the MSCI Emerging Markets IMI Index (the "Short Component"). The fund is non-diversified.
RWDE aims to provide investment results, before fees and expenses, that correlate to the MSCI EAFE IMI - Emerging Markets IMI 150/50 Return Spread Index. The fund achieves this by investing at least 80% of its net assets in securities that comprise the Long Component of the index (MSCI EAFE IMI Index) or shares of ETFs on the Long Component. RWDE effectively implements a strategy that overweights developed markets relative to emerging markets. The ETF's top holding is the iShares Core MSCI EAFE ETF (IEFA) at 96.29%, indicating a strong reliance on this ETF to achieve its long exposure. Sector allocation is diversified across Financial Services (17.4%), Industrials (16.0%), Healthcare (11.8%), and other sectors, reflecting the composition of the MSCI EAFE IMI Index. This ETF is designed for investors who believe developed markets will outperform emerging markets and are seeking a potentially higher return profile through leveraged exposure.
Risk Metrics
RWDE's structure introduces specific risks. The 150/50 long/short strategy can amplify both gains and losses, making it more volatile than a simple long-only equity ETF. The fund's non-diversified status means it may be more susceptible to concentration risk, although its primary holding in IEFA provides some diversification. Sector risk is also present, with significant allocations to Financial Services and Industrials, meaning the fund's performance is tied to the performance of these sectors. The expense ratio of 0.53% will create a drag on performance, especially relevant for a fund with a relatively small AUM of $0.01 billion. Investors should carefully consider their risk tolerance and investment horizon before investing in RWDE, and understand that past performance does not guarantee future results.
The Direxion MSCI Developed Over Emerging Markets ETF (RWDE) is an exchange-traded fund that seeks to track the MSCI EAFE IMI - Emerging Markets IMI 150/50 Return Spread Index. This index measures the performance of a portfolio with 150% long exposure to the MSCI EAFE IMI Index (developed markets) and 50% short exposure to the MSCI Emerging Markets IMI Index. RWDE provides investors with a tool to potentially profit from the outperformance of developed markets relative to emerging markets. The fund invests primarily in securities that comprise the long component of the index, with its largest holding being the iShares Core MSCI EAFE ETF (IEFA).
What is the expense ratio for RWDE?
The expense ratio for RWDE is 0.53%. This means that for every $10,000 invested in the fund, $53 is deducted annually to cover operating expenses. While this is a factor to consider, expense ratios vary across different ETFs and investment strategies. Investors should compare RWDE's expense ratio to those of similar ETFs with comparable investment objectives to assess its cost-effectiveness. The expense ratio will impact overall returns, and investors should factor this into their investment decisions.
What are the top holdings in RWDE?
As of 2026-03-15, the top holding in RWDE is the iShares Core MSCI EAFE ETF (IEFA), comprising 96.29% of the fund's portfolio. This significant allocation indicates that RWDE primarily gains its long exposure to developed markets through this ETF. The iShares Core MSCI EAFE ETF (IEFA) provides broad exposure to developed market equities outside of the United States and Canada. The remaining portion of the fund's assets may be allocated to other securities or used for managing the short exposure to emerging markets.
Is RWDE a good long-term investment?
Whether RWDE is a suitable long-term investment depends on an investor's individual circumstances, risk tolerance, and investment objectives. RWDE's strategy of being long developed markets and short emerging markets can lead to periods of outperformance and underperformance depending on the relative economic conditions and market sentiment. The fund's expense ratio of 0.53% and its non-diversified nature are also factors to consider. Investors should carefully evaluate RWDE's investment strategy, risk profile, and historical performance in the context of their overall portfolio before making a decision. Past performance does not guarantee future results.
How does RWDE compare to similar ETFs?
RWDE stands out due to its unique long/short strategy focusing on the relative performance of developed versus emerging markets. Many ETFs offer broad exposure to either developed or emerging markets, but few combine them in a 150/50 long/short structure. With AUM of $0.01 billion, RWDE is relatively small compared to more established broad market ETFs. Its expense ratio of 0.53% is also a factor to consider when comparing it to other ETFs, as some broad market ETFs may have lower expense ratios. Investors should compare RWDE's performance and risk characteristics to those of other ETFs with similar investment objectives to determine its suitability for their portfolios.
Does RWDE pay dividends?
Yes, RWDE does pay dividends. The current dividend yield for RWDE is 2.32%. This means that investors can expect to receive approximately 2.32% of their investment in the fund as dividend income on an annual basis, although this can fluctuate. The dividend yield is influenced by the dividend payments of the underlying holdings within the MSCI EAFE IMI Index and the fund's overall performance. Dividend payments are typically made on a regular basis, providing investors with a source of income.