Offers Exposure to Stocks Neglected by Wall Street
NEW YORK—July 22, 2021— Direxion announced today the launch of the Direxion Low Priced Stock ETF (Ticker: LOPX). LOPX invests in 50 companies trading at share prices between $2 and $5 at the time of purchase. Low priced stocks tend to be in the small-to-mid cap range of the market, with higher return potential on average, coupled with higher volatility.
“Investors and traders are increasingly interested in gaining exposure to stocks outside of traditional indexes,” said David Mazza, Managing Director, Head of Product at Direxion. “On average, low priced stocks have four times fewer analyst recommendations than mega caps, highlighting their lack of coverage by investment banks. LOPX provides a way for Main Street investors to take advantage of stocks neglected by Wall Street research, which may be ripe for potential outperformance.”
LOPX seeks investment results, before fees and expenses, of the Solactive Two Bucks Index. The Solactive Two Bucks Index tracks the performance of 50 U.S.-listed companies trading between $2 and $5 at the time of annual reconstitution. The companies will remain unless share prices decline below $1.25, or increase beyond $10, at quarterly rebalance.
As of June 30, 2021, the 50 constituents had a median total market capitalization of $1.3 billion, with total market capitalizations ranging from $60 million to $29 billion, and was concentrated in the energy and health care sectors. Top ten holdings are as follows:
|Ticker||Name||GICS Sub-Industry||Market Cap ($M)||Weight (%)|
|AMC||AMC Entertainment Holdings Inc||Movies & Entertainment||$23,136||7.64%|
|TELL||Tellurian Inc||Oil & Gas Exploration & Production||$1,684||3.64%|
|CDEV||Centennial Resource Development Inc/DE||Oil & Gas Exploration & Production||$1,809||2.75%|
|AR||Antero Resources Corp||Oil & Gas Exploration & Production||$4,221||2.69%|
|MGI||MoneyGram International Inc||Data Processing & Outsourced Services||$802||2.67%|
|ENLC||EnLink Midstream LLC||Oil & Gas Storage & Transportation||$2,965||2.45%|
|RIG||Transocean Ltd||Oil & Gas Drilling||$2,778||2.34%|
|PTEN||Patterson-UTI Energy Inc||Oil & Gas Drilling||$1,684||2.25%|
|WTI||W&T Offshore Inc||Oil & Gas Exploration & Production||$632||2.20%|
Source: Source: Bloomberg Finance, L.P., Solactive, as of 07.08.2021.
Direxion equips investors who are driven by conviction with ETF solutions built for purpose and fine-tuned for precision. These solutions are available for a broad spectrum of investors, whether executing short-term tactical trades, or investing in thematic strategies. Direxion’s reputation is founded on developing products that precisely express market perspectives and allow investors to manage their risk exposure. Founded in 1997, the company has approximately $26.6 billion in assets under management as of June 30, 2021. For more information, please visit www.direxion.com.
For more information on all Direxion Shares daily leveraged ETFs, go to direxion.com, or call us at 866.476.7523.
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 866-716-0735 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.
Direxion Shares Risks – Investing involves risk including possible loss of principal. There is no guarantee the investment strategy will be successful. Stocks with a low trading price may be subject to short-term price movements and higher volatility. Further, low price securities may have limited liquidity and trade volume which may affect the Fund’s ability to purchase or sell a position at the time of reconstitution, or to purchase or sell the security without effecting the price of the security. Companies with low trading volume and/or low security prices may be seen to have a deteriorating company reputation comparted to those companies with greater market capitalization. Additional risks of the Fund include, but are not limited to, Index Correlation/Tracking Risk, Index Strategy Risk, Natural Disaster/ Epidemic and Market Disruption Risk, and risks associated with the market capitalizations and sectors 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.
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