Direxion Flight to Safety Strategy ETF

  • FUND SYMBOL

    FLYT

  • INTRA-DAY INDICATIVE VALUE

    FLYT.IV

  • BLOOMBERG INDEX

    SOLFTS

  • CUSIP

    25460G203

  • EXPENSE RATIO (GROSS/NET %)

    0.40 / 0.40*

  • INCEPTION DATE

    Feb 05, 2020

Overview

The Direxion Flight to Safety Strategy ETF aims to deliver a simple, yet robust, approach to portfolio risk mitigation from equity market drawdowns while also providing long-term appreciation potential. By combining long-term U.S. treasury bonds, utility stocks, and gold bullion, the ETF may act as a diversified ballast for portfolios while also acting as a source of uncorrelated returns.

  • A strategy that delivers attractive total return potential with defensive equity characteristics
  • A way to introduce portfolio risk mitigation that does not require precision in timing and ongoing carry costs
  • An ETF with a low correlation to equities and stable volatility can help deliver added diversification to portfolios

Investment Objective

The Direxion Flight to Safety Strategy ETF seeks to provide total returns that exceed the total return of the Solactive Flight to Safety Index over a complete market cycle. There is no guarantee that the fund will achieve its stated investment objective.

Fund Exposure

Asset Classes with Lower Volatility are Assigned Greater Weights in the Portfolio


Source: Bloomberg.

Volatility is a statistical measure of the dispersion of returns for a given security or market index. In most cases, the higher the volatility, the riskier the security.

 

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Target Index

The Solactive Flight to Safety Index (the "Index") measures the performance of a volatility-weighted basket of gold, U.S. listed large-capitalization utility stocks, and U.S. treasury bonds with remaining maturities of greater than 20 years. The Index rebalances on a quarterly basis such that the weight of each component (U.S. treasury bonds, utility stocks, and gold) will be based on the contribution of the volatility of each component to the overall Index. The least volatile component of the Index, based on each component's trailing 5 year volatility measure, will receive the largest weighting. The gold component will be limited to 22.5% of the Index and its volatility will be based on the volatility of the spot price of gold. One cannot directly invest in an index.

Index Holdings and Weightings

Top 10 Holdings %

Gold Bullion 22.50
NextEra Energy  4.02
Dominion Energy  2.04
Duke Energy Corp 2.02
United States Treasury Bond (Nov 2048) 1.98
Southern Co 1.94
United States Treasury Bond (Feb 2049) 1.91
United States Treasury Bond (May 2049) 1.87
United States Treasury Bond (Aug 2048) 1.79
United States Treasury Bond (May 2048) 1.72

Asset Class Weightings %

US 20+ Year Treasury Bonds 51.65
US Large & Mid Cap Utilities 25.85
Gold Bullion 22.50

Source: Bloomberg. Index and Sector weightings are net and as of 3/31/2020 and subject to change.

 

Index Construction

The Solactive Flight to Safety Index combines long-term U.S. treasury bonds, utility stocks, and gold to provide multi-asset defensive exposures.

  • Asset classes were selected for their defensive characteristics
  • Asset classes were selected for their low-to-negative correlations to each other
  • Risk-weighted approach based on trailing volatility

Pricing and Performance

NAV and Market Price information as of May 22, 2020. Line chart shows pricing trend over the last 30 days.

fund symbol

FLYT

  • Net asset value (NAV)

    • 51.48
    • 0.35
    • 0.68
  • market price closing

    • 51.50
    • 0.25
    • 0.49
  • Premium / Discount

    • 0.02

* 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 0.30%. Rafferty Asset Management, LLC ("Rafferty") has entered into an Operating Services Agreement with the Fund. Under this Operating Services Agreement, Rafferty has contractually agreed to pay all expenses of the Fund through September 1, 2021 other than the following: management fees, Rule 12b-1 distribution and/or service fees, taxes, swap financing and related costs, dividends or interest on short positions, other interest expenses, brokerage commissions, expenses incurred in connection with any merger or reorganization, acquired fund fees and expenses, 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. For the most recent month-end performance please visit the fund's website at www.direxion.com.

Short-term performance, in particular, is not a good indication of the fund's future performance, and an investment should not be made based solely on returns. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes. For additional information, see the fund's prospectus.

Distributions

  • FLYT
  • Direxion Flight to Safety Strategy ETF
Record Date Ex Date Pay Date Income Dividend Short-Term Capital Gain Long-Term Capital Gain
03/25/2020 03/24/2020 03/31/2020 0.12087