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.
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 seeks to deliver 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
Documents & Downloads
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 %
|American Electric Power||4.82|
|Public Service Ent||3.43|
Asset Class Weightings %
|US 20+ Year Treasury Bonds||51.96|
|US Large & Mid Cap Utilities||25.55|
Source: Bloomberg. Index and Sector weightings are net and as of 12/31/2020 and subject to change.
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
Asset Classes with Lower Volatility are Assigned Greater Weights in the Portfolio
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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Pricing & Performance
NAV and Market Price information as of Invalid date. Line chart shows pricing trend over the last 30 days. The Primary Listing Exchange is the NYSE Arca, Inc.