NEW YORK—March 02, 2018— The Board of Trustees of the Direxion Shares ETF Trust has decided to liquidate and close the Direxion iBillionaire Index ETF (IBLN) (“the Fund”) based on the recommendation of Rafferty Asset Management, LLC, the Fund’s adviser. The Fund will cease trading on the NYSE Arca, Inc. (“NYSE”) and will be closed to purchase by investors as of the close of regular trading on the NYSE on April 6, 2018 (the “Closing Date”). The Fund will not accept purchase orders after the Closing Date.
Due to the Fund’s inability to attract sufficient investment assets, Rafferty believes they cannot continue to operate the Fund in an economically efficient manner. As a result, the Board concluded that liquidating and closing the Fund would be in the best interest of the Fund and its shareholders.
Shareholders may sell their holdings in the Fund prior to the Closing Date and customary brokerage charges may apply to these transactions. However, from April 6, 2018 through April 13, 2018 (the “Liquidation Date”) shareholders may only be able to sell their shares to certain broker-dealers and there is no assurance that there will be a market for the Fund’s shares during this time period. Between the Closing Date and the Liquidation Date, the Fund will be in the process of closing down and liquidating its portfolio. This process will result in the Fund increasing its cash holdings and, as a consequence, not tracking its underlying index, which is inconsistent with the Fund’s investment objective and strategy.
On or about the Liquidation Date, the Fund will liquidate its assets and distribute cash pro rata to all shareholders who have not previously redeemed or sold their shares. These distributions are taxable events. In addition, these payments to shareholders may include accrued capital gains and dividends. As calculated on the Liquidation Date, the Fund’s net asset value will reflect the costs of closing the Fund. Once the distributions are complete, the Fund will terminate.Press Release (pdf)
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 $13.4 billion in assets under management as of December 31, 2017. Direxion’s diverse suite of products helps investors navigate today’s ever-changing markets. For more information, please visit www.direxion.com.
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.
An investor should consider the investment objectives, risks, charges, and expenses of Direxion ETFs carefully before investing. The prospectus and summary prospectus contains this and other information about Direxion ETFs. Download a prospectus and summary prospectus at direxioninvestments.com. The prospectus and summary prospectus should be read carefully before investing.
Direxion Shares Risks – An investment in the Fund involves risk, including the possible loss of principal. The Fund is non-diversified and includes risks associated with concentration that results from the Fund’s investments in a limited number of securities. The Fund is subject to Form 13F Data Risk. Form 13F provides information on holdings as of the end of a calendar quarter. Because information contained in these forms is a snapshot of investment positions at quarter’s end on up to a 45 day delay, the actual investment portfolios of the Form 13F fliers could diverge significantly from the publicly reported positions during the course of the year. Risks of the Fund include: iBillionaire Index Risk, Index Correlation/Tracking Risk, Replication Strategy Risk and risks specific to investment in an industry or sector and risks associated with the market capitalizations of the securities in which the Fund may invest. Please see the summary and full prospectuses for a more complete description of these and other risks of the Fund.
Distributor: Foreside Fund Services, LLC.