Direxion unveils Breakfast Commodities Strategy ETF (BRKY)
June 4 - 2022
Coffee Geography Magazine
Direxion, a leading provider of leveraged & inverse and thematic ETFs, today announced the launch of the Direxion Breakfast Commodities Strategy ETF (Ticker: BRKY), a first-of-its kind exchange-traded fund offering exposure to the commodities that comprise the most important meal of the day.
BRKY tracks the S&P GSCI Dynamic Roll Breakfast (OJ 5% Capped) Index, which includes a basket of six commodities—corn, coffee, lean hogs (bacon), orange juice concentrate, sugar, and wheat. As the first ETF comprised of these breakfast commodity futures, BRKY provides access to commodities whose prices are increasing due to supply chain pressures, geopolitical tensions, and weather-related issues. In a period of persistent inflation, this basket of commodities may offer strong diversification characteristics, due to their non-correlated returns in comparison to stocks and bonds.
"2022 has been one of the most challenging environments for traditional portfolios in decades," said Direxion Managing Director and Head of Product David Mazza. "Investors can no longer rely on only stocks and bonds to meet their financial goals. Breakfast commodities can play an important role in providing diversification, as well as a hedge against the inflation we are all feeling in our wallets."
David Mazza, Managing Director Direxion
The global food supply chain is more interconnected than ever, and unfortunately is facing pricing pressures from the conflict in Ukraine, droughts in countries such as Brazil, and more countries like India restricting food exports. In fact, food prices hit their highest levels ever in April 2022, according the Food and Agriculture Organization of the United Nations (FAO). Year-over-year, they increased 30%, highlighting the extreme nature of these challenges. "Everyone is feeling the impact of inflation," said Mazza. "Even the price of a cup of coffee, or a bowl of cereal, has skyrocketed. But there is an opportunity to take advantage of these rising prices in your portfolio by investing in these commodity staples with BRKY."
Direxion equips investors who are driven by conviction with ETF solutions built for purpose and fine-tuned for precision. These solutions are available for a broad spectrum of investors, whether executing short-term tactical trades, or investing in thematic strategies. Direxion's reputation is founded on developing products that precisely express market perspectives and allow investors to manage their risk exposure. Founded in 1997, the company has approximately $28.6 billion in assets under management as of March 31, 2022.