Direxion Expedites Change in Investment Objectives, Strategies of 10 ETFs

The investment objective and strategy of each fund in the table below is currently to seek daily leveraged, or daily inverse leveraged, investment results, before fees and expenses, of 300% or -300%, as applicable, of the performance of its underlying index.

Effective after market close on March 31, 2020 each fund’s investment objective and strategy will change to seek daily leveraged, or daily inverse leveraged, investment results, before fees and expenses, of 200% or -200%, as applicable, of the performance of its underlying index, as shown below:

In addition, the “3X” in each fund’s name will be replaced with “2X” as follows:

Direxion said each fund had previously disclosed its plan to make these changes effective May 19, 2020.

“Due to recent market volatility and related developments, these changes will now occur on the earlier date stated above,” Direxion said in a release. “For these same reasons and the need to transition each fund’s portfolio to its new investment objective and strategy; it is likely that some or all of the funds will not achieve their current investment objectives of seeking daily leveraged, or daily inverse leveraged, investment results, before fees and expenses, of 300% or -300%, as applicable, of the performance of their underlying index.”

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