Podcast BETFs T1E5 whit Bilal Little at Direxion

SPEAKER_1 (0:00)

ETFs are transforming the way we invest, shaping the present and future of financial markets. Join the movement that is driving the global financial world, and discover with us why ETFs are revolutionizing investment strategies.

Podcast B-ETFs, Information, Vision and Strategy to evolve alongside the markets.

Eduardo Calderón (0:24)

Hi, my name is Eduardo Calderón, Chief Operating Officer at Bolsa Inseccional de Valores, BIVA. We are recording today from New York in our Mexico Investment Week.

This is the new episode of B-ETF Podcast, the instrument moving the financial world now in your ears. In this series, we explore why ETFs are no longer a simple market trend, but an essential part of today's investment landscape. Today, we're focusing on a distinctive segment of the ETF universe, leverage and inverse ETFs. At BIVA, we have seen remarkable growth in these products through the International Quotation System, known as SIC. For example, trading value of Direxion ETFs rose from 5.8 billion pesos to almost 12.4 in June this year. Direxion shares of trading value among those top 15 asset managers also more than doubled in Mexico, increasing from 2.7 to 6.1 percent. Joining us today is Bilal Little. Global ETF Strategist at Direxion. One of the world's lead asset managers specialize in leverage and inverse ETFs. With approximately 61 billion US in asset under management and offering of 134 funds. Direxion has built its reputation of intelligence and precision providing investors with a tactical tool to express high conviction view in fast moving markets. Bilal joined Direxion in May, 2026, bringing nearly two decades of ETF industry expertise.

His provided roles include Director of Exchange Rate Funds at New York Stock Exchange as well as leaders position in BlackRock Harvard Capital Advisors. His current role, his focus on deepening client relation, expanding Direxion market presence and advancing investor education globally. A meaningful mandate at a particular time and moment for ETF industries.

Bilal, welcome to the ETF Podcast. It's a pleasure to have you with us.

Bilal Little (2:25)

Thank you so much for having me. I'm really excited to be here.

Eduardo Calderón (2:28)

Thank you. Direxion is one of the best known names in leverage and inverse ETFs. Products such as SoxL and SoxS rank among the most acclaimed traded ETF of their kind, both globally and through BIVA-SIC. Today, we'll take a wide to narrow approach, beginning with Direxion place in the ETF landscape, and then moving into how these products work, how they are used, and why investors in Mexico love them. Let's begin.

Why Direxion and why is the role to leverage an inverse ETF play in a broader ETF universe?

Bilal Little (3:04)

Yeah. Look, I think as a firm, we really care about innovation, right? That's our hallmark of who we are and how we started.

The other point that I think that's really important for us is education. Because these are very unique investment tools, we want to make sure that the investor, the trader, they understand how these tools actually work, and what the risk as well as the obviously upside and rewards are. So just Direxion as an organization and firm, I think is really important to help level set.

Yes, you mentioned over $60 billion in assets. He topped 15 asset manager globally by AUM when it comes to ETFs. But we really got our start back in 2008 in the ETF space where we were first to actually provide 3X leverage in a market of November of 2008 Just think about that. Some would say that's great timing or others would say it's luck. I think what it did is it showed that we had the commitment and fortitude to lean into precision and offer traders and investors an opportunity to express their views at the most critical time. And I think that's where we are today as well.

Eduardo Calderón (4:10)

Perfect.

And how would you define the leverage and inverse ETFs and how is intended to the user? Where should investors draw the line between these tactical products and traditional buy and hold strategy?

Bilal Little (4:25)

Yeah, so it's a great question. One, I think it's time frame.

When it comes to tactical trading, that typically implies a short-term nature. The other thing that we did is we wanted to name all of our products daily leverage. So they actually understood how these products should either be held and or traded. The other thing that I want to mention is the educational component of this conversation. So when you start thinking about a long-term investor, they don't care about short-term headlines. What do they think about? Well, what am I going to be doing in 25 years? Which means they don't want to care about the day-to-day volatility and fluctuation. They want to put their money into the market and they want to obviously hold for the investor that cares about what's happening with earnings or the Fed or the global rates and they want to express those views. That's where Leverage and Inverse really comes in, because they can then exercise their visions with precision in an ETF vehicle.