New ETFs Provide 200% Bull & Bear Exposure to TIPS
NEW YORK—April 7, 2022—Direxion launched the Direxion Daily TIPS Bull 2X Shares (Ticker: TIPL) and the Direxion Daily TIPS Bear 2X Shares (Ticker: TIPD). The Funds seek to achieve 200%, or 200% of the inverse (or opposite), of the daily performance of the Solactive TIPS ETF Index.
The Solactive TIPS ETF Index provides exposure to inflation-protected U.S Treasury bonds, commonly known as “TIPS.” TIPS are securities issued by the U.S. Treasury that are designed to provide inflation protection to investors. TIPS are income-generating instruments whose interest and principal payments are adjusted for inflation. Inflation is a sustained increase in prices that erodes the purchasing power of money.
|Fund||Symbol||CUSIP||Benchmark||Gross Expense Ratio||Net Expense Ratio*|
|Direxion Daily TIPS Bull 2X Shares||TIPL||25460G310||Solactive TIPS ETF Index||1.09%||1.07%|
|Direxion Daily TIPS Bear 2X Shares||TIPD||25460G294||Solactive TIPS ETF Index||1.09%||1.07%|
“Following decades when inflation was all but non-existent, the prices of everything from cars to computers have jumped in recent months,” said David Mazza, Managing Director, Head of Product at Direxion. “TIPL and TIPD allow traders to take amplified bullish or bearish positions on the US TIPS market.”
Like all leveraged ETFs, this Direxion product is intended only for investors with an in-depth understanding of the risks associated with seeking leveraged investment results, and who plan to actively monitor and manage their positions. There is no guarantee that this Fund will meet its objective.
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 $28.6 billion in assets under management as of March 31, 2022. For more information, please visit www.direxion.com.
There is no guarantee that the Funds will achieve their investment objectives.
Leveraged 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 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 - An investment in the ETFs involves risk, including the possible loss of principal. The ETFs are non-diversified and include risks associated with concentration that results from an ETF’s investments in a particular industry or sector which can increase 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. The ETFs do not attempt to, and should not be expected to, provide returns which are a multiple of the return of their respective index for periods other than a single day. For other risks including leverage, correlation, daily compounding, market volatility and risks specific to an industry or sector, please read the prospectus.
The value of inflation protected securities, including TIPS, generally will fluctuate in response to changes in “real” interest rates, generally decreasing when real interest rates rise and increasing when real interest rates fall. Real interest rates represent nominal (or stated) interest rates reduced by the expected impact of inflation. In addition, interest payments on inflation indexed securities will generally vary up or down along with the rate of inflation.
Distributor: Foreside Fund Services, LLC