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Direxion Launches World Without Waste ETF

January 13, 2021
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First ETF Focused on Exposure to Circular Economy

NEW YORK—January 14, 2021— Direxion announced today the recent launch of the Direxion World Without Waste ETF (Ticker: WWOW). WWOW invests in 50 companies at the forefront of the move to a circular economy from a linear one. Until recently, the ‘take-make-consume-waste’ of resources within a linear economy has prevailed. Raw material transformed into a product, and after its utility was over, its lifecycle ended and it became waste. Alternatively, the regenerative framework provided by a circular economy affords companies the ability to address environmental and sustainability priorities, drive innovation, and push for competitiveness, while generating growth.

“Investors have embraced ETFs with exposure to renewable and alternative sources of energy, but a circular economy encapsulates a far broader range of companies,” said David Mazza, Managing Director at Direxion. “WWOW is the first US-listed fund providing direct exposure to companies helping to make a world without waste.”

WWOW seeks investment results, before fees and expenses, which track the Indxx US Circular Economy Index. The Indxx US Circular Economy Index tracks the performance of 50 US-listed companies that are representative of the transformative shift from the linear model of economy to a circular one. The index includes five sub-themes central to the circular economy, providing investors access to the shifting paradigm in growing segments such as biofuels, solar power, and waste management, along with collaboration and content sharing platforms. The top 10 companies from each sub-theme, by largest total market capitalization, will form the final index.

The five sub-themes are:

Sustainability of Resources: Provide renewable energy – bio-based or fully recyclable input material – to replace single-lifecycle inputs.

Resource Recovery: Recover useful resources and energy from disposed products or byproducts.

Life Cycle Extension: Extend the working lifecycle of products and components by repairing, upgrading and reselling.

Sharing Platforms: Enable the increased utilization rate of products through shared access, ownership and use.

Product as a Service: Offer product access, and retain ownership, to internalize the benefits of circular resource productivity.

The top holdings in the Indxx US Circular Economy Index represent large, mid, and small cap firms across a mix of unique sub-industries representative of a world without waste. Many of the holdings focus on the Information Technology sector, with further exposure to the Communication Services, Consumer Discretionary and Industrials sectors.

TickerNameCircular Economy Sub-themeTotal Market Cap ($M)Weight (%)
JMIAJumia Technologies AGLife Cycle Extension$3,593.21 8.39%
ENPHEnphase Energy IncSustainability of Resources$22,167.58 6.94%
TSLATesla IncSustainability of Resources$668,905.11 6.76%
ETSYEtsy IncLife Cycle Extension$22,432.84 4.55%
SNAPSnap IncSharing Platforms$74,603.33 3.40%
MELIMercadoLibre IncLife Cycle Extension$83,386.78 3.15%
SHOPShopify IncSharing Platforms$138,093.33 3.03%
SPOTSpotify Technology SASharing Platforms$59,655.18 2.78%
FSLRFirst Solar IncSustainability of Resources$10,483.16 2.49%
OKTAOkta IncProduct as a Service$32,918.05 2.48%

Source: Source: Bloomberg Finance, L.P., Indxx, as of 12.31.2020.

About Direxion:

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, investing in macro themes, or building long-term asset allocation 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 $19.7 billion in assets under management as of December 31, 2020. For more information, please visit www.direxion.com.

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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. The value of stocks of information technology companies and companies that rely heavily on innovation and technology are particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation and competition, both domestically and internationally, including competition from competitors with lower production costs. Innovative technology companies may struggle to capitalize on new technology or may face competition and obsolescence. Additional risks of the Fund include, but are not limited to, Index Correlation/Tracking Risk, Index Strategy Risk, Market Disruption Risk, 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.

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