Direxion Changes Name Of S&P 500® Volatility Response ETF

NEW YORK, Aug. 6, 2014 /PRNewswire/ -- Direxion Investments, an ally for strategic and tactical investors who seek better investment outcomes, has changed the name of the Direxion S&P 500® DRRC Index Volatility Response Shares, to the Direxion S&P 500® Volatility Response Shares. The name change reflects the underlying index change to the S&P 500® Volatility Response Index.

The Direxion S&P 500® Volatility Response Shares ETF (NYSE: VSPY) began following its new index on August 1, 2014.  "VSPY is a strategic way for investors to seek a smoother ride for their S&P 500 core holdings," said Brian Jacobs, President of Direxion Investments. "Periods of high volatility often coincide with adverse equity markets, while periods of low volatility tend to represent a greater likelihood of favorable market conditions. By tracking the S&P 500® Volatility Response Index, which uses volatility to dictate overall equity exposure, VSPY allows investors to gain exposure to large- and mid-cap stocks, with a strategic way to manage risk. We're pleased with the fund's performance since inception, and we anticipate that this index change will allow for continued risk management for investors." 

The S&P 500® Volatility Response Index, designed to respond to volatility, is composed of S&P 500 equity securities and U.S. Treasury Bills. The Index responds to volatility by establishing a volatility target which may be set at 12.5%, 15%, or 17.5%, and is determined based on the recent levels of CBOE Volatility Index (VIX®). The Index then reviews several volatility factors of the S&P 500 Index. The volatility factors of the S&P 500 Index are exponentially weighted with more emphasis placed on the most recent historical periods. Those volatility factors, along with the target volatility levels, determine the Index's exposure to the equity component and the Treasury Bill component. The percentage exposure to the equity component is expected to range between 10% and 100%, and will not exceed 100%. Exposure to the Treasury Bills component is expected to range between 0% and 90%.

The following tables provide example exposure levels to the Stock Component that the Fund would have at target volatility levels of 12.5%, 15% and 17.5% based on hypothetical volatility calculations. As reflected in the tables below, the Fund can generally be expected to have greater exposure to the Stock Component at lower levels of S&P 500® Index volatility, and the Index's target volatility can further increase or decrease this exposure.

The charts above are hypothetical and not representative of Fund holdings.  There is no guarantee the fund will meet the stated objective.

For more information about Direxion, please contact James Doyle at 973-850-7308 or [email protected].

About Direxion Investments:

Direxion Investments managed by Rafferty Asset Management, LLC, offers highly liquid, tactical and strategic institutional-style ETFs and Mutual Funds for investors seeking to solve for better investment outcomes. The firm provides a wide range of index-based products that offer directional options, magnified exposure and long-term, rules-based strategies. Founded in 1997, the company has approximately $8.4 billion in assets under management as of June 30, 2014. Our diverse suite of products helps traders and investors stay nimble in the short term—and pursue strategies for the long term—as they navigate today's ever-changing markets. For more information, please visit www.direxioninvestments.com.

* Rafferty has contractually agreed to waive all or a portion of its fees and/or reimburse the fund for expenses through September 1, 2015, to the extent that the funds net annual operating expenses exceed 0.45% (excluding, as applicable, among other expenses, taxes, leverage interest, acquired fund fees and expenses, dividends or interest on short positions, other interest expenses, brokerage commissions, expenses incurred in connection with any merger or reorganization and extraordinary expenses such as litigation).

There is no guarantee that the funds will achieve their objectives.

For more information on all Direxion ETFs, go to direxioninvestments.com, or call us at 866.476.7523.

An investor should consider the investment objectives, risks, charges, and expenses of Direxion ETFs carefully before investing. The prospectus and summary prospectus contains this and other information about Direxion ETFs. Download a prospectus and summary prospectus at www.direxioninvestments.com. The prospectus and summary prospectus should be read carefully before  investing.

Risks:
Investing in the funds may be more volatile than investing in broadly diversified funds. There is no assurance that the Funds will achieve their objectives and an investment in a Fund could lose money. No single Fund is a complete investment program. One cannot invest directly in an index. An investment in the Fund involves risk, including the possible loss of principal. 

Distributor: Foreside Fund Services, LLC.

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SOURCE Direxion Investments

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