Direxion Expedites Change in Investment Objectives, Strategies of 10 ETFs

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Direxion announced Friday that it was expediting the change in objectives and strategies of 10 daily leveraged and daily inverse leveraged funds.

The investment objective and strategy of each fund in the table below is currently to seek daily leveraged, or daily inverse leveraged, investment results, before fees and expenses, of 300% or -300%, as applicable, of the performance of its underlying index.

Effective after market close on March 31, 2020 each fund’s investment objective and strategy will change to seek daily leveraged, or daily inverse leveraged, investment results, before fees and expenses, of 200% or -200%, as applicable, of the performance of its underlying index, as shown below:

TickerFundUnderlying IndexNew Daily Leveraged Investment Objective

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(before fees and expenses)

BRZUDirexion Daily Brazil Bull 3X SharesMSCI Brazil 25/50 Index200%RUSLDirexion Daily Bull 3X SharesMVIS Index200%NUGTDirexion Daily Miners Index Bull 3X SharesNYSE Arca Miners Index200%DUSTDirexion Daily Miners Index Bear 3X Shares-200%JNUGDirexion Daily Junior Miners Index Bull 3X SharesMVIS Global Junior Miners Index200%JDSTDirexion Daily Junior Miners Index Bear 3X Shares-200%ERXDirexion Daily Bull 3X SharesEnergy Select Sector Index200%ERYDirexion Daily Bear 3X Shares-200%GUSHDirexion Daily S&P Exp. & Prod. Bull 3X SharesS&P & Production Select Industry Index200%DRIPDirexion Daily S&P Exp. & Prod. Bear 3X Shares-200%

 

In addition, the “3X” in each fund’s name will be replaced with “2X” as follows:

TickerCurrent Fund NameNew Fund NameBRZUDirexion Daily MSCI Brazil Bull 3X SharesDirexion Daily MSCI Brazil Bull 2X SharesRUSLDirexion Daily Russia Bull 3X SharesDirexion Daily Russia Bull 2X SharesNUGTDirexion Daily Gold Miners Index Bull 3X SharesDirexion Daily Gold Miners Index Bull 2X SharesDUSTDirexion Daily Gold Miners Index Bear 3X SharesDirexion Daily Gold Miners Index Bear 2X SharesJNUGDirexion Daily Junior Gold Miners Index Bull 3X SharesDirexion Daily Junior Gold Miners Index Bull 2X SharesJDSTDirexion Daily Junior Gold Miners Index Bear 3X SharesDirexion Daily Junior Gold Miners Index Bear 2X SharesERXDirexion Daily Energy Bull 3X SharesDirexion Daily Energy Bull 2X SharesERYDirexion Daily Energy Bear 3X SharesDirexion Daily Energy Bear 2X SharesGUSHDirexion Daily S&P & Exp. & Prod. Bull 3X SharesDirexion Daily S&P & Gas Exp. & Prod. Bull 2X SharesDRIPDirexion Daily S&P & Gas Exp. & Prod. Bear 3X SharesDirexion Daily S&P & Gas Exp. & Prod. Bear 2X Shares

 

Direxion said each fund had previously disclosed its plan to make these changes effective May 19, 2020.

“Due to recent market and related developments, these changes will now occur on the earlier date stated above,” Direxion said in a release. “For these same reasons and the need to transition each fund’s portfolio to its new investment objective and strategy; it is likely that some or all of the funds will not achieve their current investment objectives of seeking daily leveraged, or daily inverse leveraged, investment results, before fees and expenses, of 300% or -300%, as applicable, of the performance of their underlying index.”

For more leveraged news and strategy, visit our Leveraged & Inverse ETF Channel.

Source: Investing.com

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