Why KNOW? Why now?
Since inception, the Direxion All Cap Insider Sentiment Shares ETF (Ticker: KNOW) has outperfomed the major U.S. stock indexes including the: S&P 500, S&P MidCap 400, S&P SmallCap 600 and S&P1500 (source: Morningstar Direct).
It makes sense. Corporate insiders− top officers, boards of directors, and major shareholders − have a natural edge over retail investors, and even financial analysts, because they typically know their businesses and industries better than anyone. That’s why, no matter how much research you do, or how much financial news you consume, you’re always a step behind those “in the know”.
The Direxion All Cap Insider Sentiment Shares (KNOW) is designed to help long term-investors pursue better portfolio outcomes by using insider sentiment to seek alpha relative to S&P 500® Index.
With a net expense ratio of just 0.59%*, this strategic index-based ETF provides investors with cost-effective access to stocks that corporate officers, directors, and shareholders who own more than 5% of each company’s stock, are accumulating.
This insider sentiment selection uses a screening methodology based on public-company filings and positive earnings analysis that provides the basis for the funds’ quantitatively-weighted indexes. The ETF is comprised of 100 companies selected from the S&P 1500 Index.
* The Net Expense Ratio includes management fees, other operating expenses and Acquired Fund Fees and Expenses. If Acquired Fund Fees and Expenses were excluded, the Net Expense Ratio would be 0.59%. The Fund’s adviser, Rafferty Asset Management, LLC (“Rafferty”) has entered into an Operating Expense Limitation Agreement with the Fund. Under the Operating Expense Limitation Agreement, Rafferty has contractually agreed to waive all or a portion of its management fees and/or reimburse the Fund for Other Expenses through September 1, 2019, to the extent that the Fund’s Total Annual Fund Operating Expenses exceed 0.59% of the Fund’s daily average net assets (excluding, as applicable, among other expenses, taxes, swap financing and related costs, acquired fund fees and expenses, dividends or interest on short positions, other interest expenses, brokerage commissions and extraordinary expenses). If these expenses were included, the expense ratio would be higher.
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate. An investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Returns for performance under one year are cumulative, not annualized.
The potential benefits of Direxion’s All Cap Insider Sentiment Shares ETF
- Allows investors to identify and participate in stocks that corporate insiders are accumulating
- Offers access to a rules-based index approach to equity investing
- Focuses on insider transactions and analyst ratings to determine weightings within the Index
- Allocations to sectors within the index can vary significantly from traditional cap-weighted equity benchmark weightings