The ETFs are non-diversified and include risks associated with concentration that results from an ETF's investments in a particular industry or sector which can increase volatility. A Fund's prospectus and summary prospectus should be read carefully before investing.ĭirexion Shares Risks - An investment in the ETFs involves risk, including the possible loss of principal. To obtain a Fund's prospectus and summary prospectus call 86 or visit our website at. A Fund's prospectus and summary prospectus contain this and other information about the Direxion Shares. Past performance is not indicative of future results.Īn investor should carefully consider a Fund's investment objective, risks, charges, and expenses before investing.
Due to the daily nature of the leveraged and inverse investment strategies employed, there is no guarantee of long-term inverse returns. Leveraged ETFs are not suitable for all investors and should be utilized only by investors who understand the risks associated with seeking daily leveraged and inverse investment results, and intend to actively monitor and manage their investments. For more information, please visit There is no guarantee that the Funds will achieve their investment objectives.įor more information on all Direxion Shares daily leveraged ETFs, go to, or call us at 866.301.9214. Founded in 1997, the company has approximately $30.8 billion in assets under management as of December 31, 2021. Direxion's reputation is founded on developing products that precisely express market perspectives and allow investors to manage their risk exposure. These solutions are available for a broad spectrum of investors, whether executing short-term tactical trades, or investing in thematic strategies. DTC is the registered owner of the Funds' shares and maintains a record of the Funds' record owners.ĭirexion equips investors who are driven by conviction with ETF solutions built for purpose and fine-tuned for precision. The Trust's transfer agent will notify the Depository Trust Company ("DTC") of the splits and instruct DTC to adjust each shareholder's investment(s) accordingly. No transaction fee will be imposed on shareholders for such redemption.Īlso as a result of the reverse splits, a Fund may have outstanding one aggregation of less than 50,000 shares to make a creation unit, or an "odd lot unit." Thus, a Fund will provide one authorized participant with a one-time opportunity to redeem the odd lot unit at the split-adjusted NAV or the NAV on such date the authorized participant seeks to redeem the odd lot unit.
Otherwise, the reverse splits will not result in a taxable transaction for holders of Fund shares. Such redemption may have tax implications for those shareholders and a shareholder could recognize a gain or loss in connection with the redemption of the shareholder's fractional shares. Thus, a Fund will redeem for cash a shareholder's fractional shares at the Fund's split-adjusted NAV after the close of the markets on March 25, 2022. However, fractional shares cannot trade on the NYSE Arca. Redemption of Fractional Shares and Tax Consequences of the Reverse SplitĪs a result of the reverse splits, a shareholder of a Fund's shares potentially could hold a fractional share. The table below illustrates the effect of a hypothetical one-for-ten reverse split anticipated for the Funds as described above: The next day's opening market value of the Funds' issued and outstanding shares, and thus a shareholder's investment value, will not be affected by the reverse split.
(the "NYSE Arca") on a split-adjusted basis on March 28, 2022. Shares of the Funds will begin trading on the NYSE Arca, Inc. In addition, the per share net asset value ("NAV") and next day's opening market price will be approximately ten-times higher for the Funds. Accordingly, the total number of the issued and outstanding shares for a Fund will decrease by the approximate percentage indicated above. Bear 2X Sharesĭirexion Daily Semiconductor Bear 3X SharesĪs a result of these reverse splits, every ten shares of a Fund will be exchanged for one share as indicated in the table above.
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