Direxion Launches 3X Leveraged and Inverse ETFs on New GICS® Communication Services Sector

New ETFs Provide 300% Exposure to Newly Transformed Index

NEW YORK—January 14, 2019— Direxion has added two ETFs to complete its synchronization with the Global Industry Classification Standard (GICS®) sector changes implemented by S&P Dow Jones in September 2018. These new ETFs offer exposure to the newly expanded and renamed Communication Services Select Sector Index.

Fund Symbol CUSIP Benchmark Gross Expense Ratio* Net Expense Ratio*
Direxion Daily Communication Services Index Bull 3X Shares TAWK 25460E497 Communication Services Select Sector Index 1.11% 1.01%
Direxion Daily Communication Services Index Bear 3X Shares MUTE 25460E489 Communication Services Select Sector Index 1.08% 1.07%

The Communication Services sector now reflects today’s modern means of facilitating communications and delivering information, broadened to include not just telecom titans such as AT&T, but major internet and IT industry players such as Netflix and Facebook. The new composition means the sector will offer potentially more growth-oriented exposure than the old value-oriented telecommunication services sector, as well as become more cyclical than defensive.

“The new Communication Services sector reflects what communications means in the 21st century, transforming what was once a defensive area of the market into one that is global, cyclical and growth-oriented,” said David Mazza, Managing Director and Head of Product at Direxion. “TAWK and MUTE allow traders to take bold positions on the next evolution of media and communications.”

Like all leveraged and inverse ETFs, these Direxion products are intended only for investors with an in-depth understanding of the risks associated with seeking leveraged and inverse investment results, and who plan to actively monitor and manage their positions. There is no guarantee that the Funds will meet their objective.

Press Release (pdf)

 

About Direxion:

Direxion builds bold products for investors who want more than the status quo. Our index-based products deliver directional options, magnified exposure, and long-term, rules-based strategies. Founded in 1997, the company has approximately $11.5 billion in assets under management as of December 31, 2018. Direxion’s diverse suite of products helps investors navigate today’s ever-changing markets. For more information, please visit www.direxion.com.

 

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There is no guarantee that the Funds will achieve their investment objectives.

For more information on all Direxion Shares daily leveraged ETFs, go to direxioninvestments.com, or call us at 866.476.7523.

The 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. Due to the daily nature of the leveraged and inverse investment strategies employed, there is no guarantee of long-term inverse returns. Past performance is not indicative of future results.

*  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 0.95%. The Funds’ adviser, Rafferty Asset Management, LLC (“Rafferty”), has entered into an Operating Expense Limitation Agreement with each Fund. Under the Operating Expense Limitation Agreement, Rafferty has contractually agreed to waive all or a portion of its management fee and/or reimburse each Fund for Other Expenses through September 1, 2020, to the extent that the Fund’s Total Annual Fund Operating Expenses exceed 0.95% of the Fund’s average daily 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.

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 646-798-9337 or visit our website at direxioninvestments.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.

Direxion Shares Risks – An investment in each Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with the Funds’ concentrating their investments in a particular industry, sector, or geographic region which can result in increased volatility. The use of derivatives such as futures contracts and swaps are subject to market risks that may cause their price to fluctuate over time. Each Fund does not attempt to, and should not be expected to, provide returns which are three times the return of their underlying index for periods other than a single day. 

Risks of each Fund include Effects of Compounding and Market Volatility Risk, Leverage Risk, Counterparty Risk, Intra-Day Investment Risk, risks specific to the Communication Services Sector, for the Direxion Daily Communication Services Index Bull 3X Shares, Daily Index Correlation/Tracking Risk and Other Investment Companies (including ETFs) Risk, and for the Direxion Daily Communication Services Index Bear 3X Shares, Daily Inverse Index Correlation/Tracking Risk, and risks related to Shorting and Cash Transactions.  The success of companies in the Communication Services Sector is tied closely to the performance of the overall domestic and international economy, interest rates, competition and consumer confidence, and may be subject to severe competition, which may have an adverse impact on a company’s profitability.  Please see the summary and full prospectuses for a more complete description of these and other risks of each Fund.

Distributor: Foreside Fund Services, LLC.