Industry's First 1.25x Lightly Leveraged ETFs Launched

NEW YORK, Jan. 22, 2015 /PRNewswire/ -- Direxion Investments (http://www.direxioninvestments.com) announces the launch of the asset management industry's first 1.25x exchange-traded funds (ETFs). The four new Lightly Leveraged investment vehicles seek to achieve 125% of the daily performance of their respective benchmarks, and are competitively priced, offering a net expense ratio of 0.50%*.

"Our interaction with clients tells us that there is a significant demand among investors for magnified market exposure at a reasonable cost, yet many of these investors do not have the time or inclination to actively monitor and trade 2x or 3x leveraged ETFs," said Brian Jacobs, President of Direxion Investments. "We strive to educate investors on effective ways to prudently implement leverage into their portfolios, and these new products are excellent tools to help them gain a solid understanding of these concepts."  

Direxion launched the Lightly Leveraged suite of ETFs on January 7, 2015. These ETFs provide an opportunity for experienced investors to target a precise amount of market exposure with less impact from compounding than their higher-leveraged ETF cousins. The Funds rebalance their assets on a daily basis in order to obtain their daily investment objectives, and will therefore be subject to the effects of positive and negative compounding. However, due to the low level of leverage, the impact of compounding is typically much less than that of products with higher leverage points.

"Over the years, many sophisticated investors have employed leveraged ETFs to efficiently overweight certain asset classes or take advantage of perceived market trends," said Mr. Jacobs. "These new products provide an additional method to seek these and similar objectives. We are continuously researching and developing strategies that challenge old standards and strive to provide investors with new ways to achieve their desired investment outcomes."

Like all leveraged ETFs, these Direxion products are 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 the Funds will meet their objectives. 

About Direxion Investments

Direxion Investments offers highly liquid, tactical and strategic institutional-quality ETFs and mutual funds for investors seeking to solve for better investment outcomes. Founded in 1997, the company has approximately $9.0 billion in assets under management as of December 31, 2014. Direxion's diverse suite of products helps investors navigate today's ever-changing markets. For more information, please visit www.direxioninvestments.com.

 * The Net Expense Ratio includes management fees and other operating expenses, but does not include indirect expenses such as Acquired Fund Fees and Expenses, leveraged interest and brokerage commissions. The Fund's advisor, Rafferty Asset Management, LLC ("Rafferty") has entered into an Operating Expense Limitation Agreement with the Fund. Under this agreement, Rafferty has contractually agreed to cap all or a portion of its management fee and/or reimburse the Fund for Other Expenses through September 1, 2016 to the extent that the Fund's Total Annual Fund Operating Expenses exceed 0.50%.

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

For more information on all Direxion ETFs, go to www.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 direxioninvestments.com. The prospectus and summary prospectus should be read carefully before investing.

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 risk that results from the Funds' investments in a particular industry or sector which can increase volatility. The use of derivatives such as futures contracts, forward contracts, options and swaps are subject to market risks that may cause their price to fluctuate over time. The Fund does not attempt to, and should not be expected to; provide returns which are a multiple of the return of the Index for periods other than a single day. For other risks including leverage, correlation, compounding, market volatility and specific risks regarding each sector, please read the prospectus.

Distributor: Foreside Fund Services, LLC.

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SOURCE Direxion Investments

Related Links

http://www.direxioninvestments.com

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