NEW YORK, Jan. 5, 2017 /PRNewswire/ -- Direxion
announced today it has added two inverse ETFs to its expanding
lineup. The Direxion Daily Consumer Staples Bear 1X Shares (Ticker:
SPLZ) seeks daily investment results, before fees and expenses, of
100% of the inverse (or opposite) of the performance of the
Consumer Staples Select Sector Index. The Direxion Daily Utilities
Bear 1X Shares (Ticker: UTLZ) seeks daily investment results,
before fees and expenses, of 100% of the inverse (or opposite) of
the Utilities Select Sector Index.
Fund
|
Symbol
|
CUSIP
|
Benchmark
|
Daily
Target
|
Gross
Expense
Ratio
|
Net
Expense
Ratio*
|
Direxion Daily
Consumer
Staples Bear
1X Shares
|
SPLZ
|
25460E604
|
Consumer
Staples Select
Sector Index
|
-100%
|
0.56%
|
0.45%
|
Direxion Daily
Utilities Bear
1X Shares
|
UTLZ
|
25460E703
|
Utilities Select
Sector Index
|
-100%
|
0.56%
|
0.45%
|
"The Federal Reserve recently raised interest rates and signaled
up to three more increases in 2017 due to a strengthening economy,
increasing inflation and a multi-year low unemployment rate.
Against that backdrop, investors are concerned a rising-rate
environment may have a negative impact on their portfolios," said
Paul Brigandi, Managing Director
at Direxion. "The launch of SPLZ and UTLZ is timely, as they
both provide inverse exposure to two sectors having historically
high sensitivity to rising rates."
Like all inverse ETFs, these Direxion products are intended only
for investors with an in-depth understanding of the risks
associated with seeking inverse investment results, and who plan to
actively monitor and manage their positions. There is no guarantee
that these Funds will meet their objectives.
About Direxion:
Direxion builds bold products for investors who want more than
the status quo. Our index-based products deliver directional
options, magnified exposure, and long-term, rules-based strategies.
Founded in 1997, the company has approximately $11.2 billion in assets under management as of
December 31, 2016. Direxion's diverse
suite of products helps investors navigate today's ever-changing
markets. For more information, please visit
www.direxioninvestments.com.
###
There is no guarantee that the Funds will achieve their
objectives.
For more information on all Direxion Shares daily leveraged
ETFs, go to direxioninvestments.com, or call us at
866.476.7523.
The ETFs are not suitable for all investors and should be
utilized only by investors who understand the risks associated with
seeking daily leveraged and inverse investment results, and intend
to actively monitor and manage their investments. Due to the daily
nature of the leveraged and inverse investment strategies employed,
there is no guarantee of long-term inverse returns. Past
performance is not indicative of future results.
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.
* Rafferty Asset Management, LLC ("Rafferty" or the "Adviser")
has entered into an Operating Expense Limitation Agreement with the
Fund. Under the Operating Expense Limitation 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, 2017, to the extent that
the Fund's Total Annual Fund Operating Expenses exceed 0.45% of the
Fund's daily net assets (excluding, as applicable, among other
expenses, management fees, Rule 12b-1 distribution and/or service
fees, Management Services Fees, any front-end or contingent
deferred sales loads, taxes, swap financing and related costs,
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 or other expenses outside
the typical day-to-day operations of the Fund).
Risks:
The utilities sector is subject to significant government
regulation and oversight. Companies in the utilities sector may be
adversely affected due to increases in fuel and operating costs,
rising costs of financing capital construction and the cost of
complying with U.S. federal and state regulations, among other
factors.
The consumer staples sector may be affected by the
permissibility of using various food additives and production
methods, changing consumer tastes, marketing campaigns and other
factors affecting consumer demand. In particular, tobacco companies
may be adversely affected by new laws, regulations and
litigation.
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 Funds do 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 correlation, compounding,
market volatility and specific risks regarding each sector, please
read the prospectus.
Distributor: Foreside Fund Services, LLC.
CONTACT:
|
James
Doyle
|
|
JConnelly
|
|
973.850.7308
|
|
jdoyle@jconnelly.com
|
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SOURCE Direxion