Rafferty Asset Management to Close the Direxion Daily 2-Year Treasury ETFs

NEWTON, Mass., Nov. 12, 2010 /PRNewswire/ -- The Board of Trustees of the Direxion Shares ETF Trust, based upon the recommendation of Rafferty Asset Management, LLC, the Trust's adviser, has determined to close the Direxion Daily 2-Year Treasury Bull 3X Shares (TWOL) and the Direxion Daily 2-Year Treasury Bear 3X Shares (TWOZ).

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Due to the Funds' low level of assets, Rafferty determined that the Funds could not continue operations in an economically efficient manner.  As such, the Board concluded that it would be in the best interests of each Fund and its shareholders to liquidate and terminate the Funds.  The shares of the Funds will cease trading on the NYSE Arca, Inc. and close to new investors as of the close of regular trading on Nov. 30, 2010. Customary brokerage charges may apply to any transactions prior to that time.

"Direxion is focused on only offering solutions that provide exposure to tradable sectors and markets," said Dan O'Neill, President and CIO. "We believe in delivering products that directly meet the demands of sophisticated investors who seek to capitalize on changing market conditions. While interest in 2-Year Treasuries has fallen, investors are displaying ongoing interest in our longer-term Treasury 3x ETFs for transparent and magnified exposure to the Treasury markets."

Between the close of trading on Nov. 30, 2010 and Dec. 7, 2010, the Funds will be in the process of liquidating their portfolio assets.  Shares of the Funds will not trade on the NYSE Arca, Inc. during this time.  Following the close of trading on Nov. 30, 2010 through Dec. 7, 2010, shareholders only may be able to sell their shares to certain broker-dealers and there is no assurance that there will be a market for the Funds during this time period.  In addition, the planned liquidation of the Funds will result in the Funds not tracking their underlying indexes and their cash holdings increasing, which may not be consistent with the Funds' investment objectives and strategies.

Shareholders retaining Fund shares on Dec. 7, 2010 will have their Fund shares redeemed automatically at that time and will receive cash in an amount equal to the net asset value of their shares as of 4:00 p.m. Eastern Time on Dec. 7, 2010. Payments to shareholders will include accrued capital gains and dividends, if any. The net asset value as calculated will reflect the costs of closing the applicable Fund.

For more information, please contact the Funds at (800) 851-0511.

To request more information on Direxion Shares 3x ETFs, or to speak to a member of the Direxion team, please contact Jaime Doyle at (973) 400-1341 or [email protected].

About Direxion

Direxion Funds and Direxion Shares, managed by Rafferty Asset Management, LLC, offer leveraged index funds, ETFs and alternative-class fund products for investment advisors and sophisticated investors who seek to effectively manage risk and return in both bull and bear markets. Founded in 1997, the company has approximately $7.9 billion in assets under management as of 09/30/10. The company's business model is built on continuous product innovation, exceptional customer service and a commitment to building strategic relationships with distribution partners. For more information, please visit www.direxionshares.com.

Disclosure:

An investor should consider the investment objectives, risks, charges, and expenses of Direxion Shares carefully before investing. The prospectus contains this and other information about Direxion Shares. To obtain a prospectus, please visit www.direxionshares.com. The prospectus should be read carefully before investing.

Investing in index funds may be more volatile than investing in broadly diversified funds. The use of leverage by a fund increases the risk to the fund. The more a fund invests in leveraged instruments the more the leverage will magnify gains or losses on those investments. The Funds are not designed to track the underlying index over a longer period of time.

The risks associated with the funds are detailed in the prospectus which include adverse market condition risk, adviser's investment strategy risk, aggressive investment techniques risk, concentration risk, counterparty risk, credit and lower-quality debt securities risk, equity securities risk, currency exchange risk, daily correlation risk, daily rebalancing and market volatility risk, depository receipt risk, foreign and emerging markets securities risk, sector securities risk, interest rate risk, inverse correlation risk, leverage risk, market risk, non-diversification risk, shorting risk, small and mid cap company risk, tracking error risk, and special risks of exchange-traded funds.

Distributor: Foreside Fund Services, LLC.

SOURCE Direxion

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