Leveraged ETF Educational Literature

The literature page contains a growing library of in depth educational materials regarding the nature of leveraged ETF’s and the many benefits they can provide. In addition, you will find strategies and applications to assist you as you endeavor to utilize leveraged ETFs.

Understanding Leveraged Exchange-Traded Funds >
Leveraged ETFs are unique and potentially volatile investments that should be understood clearly before investing. This brochure provides insight into Direxion Shares’ fund composition and management process and discusses the risks associated with them.

Volatility Matters >
Direxion's leveraged ETFs seek daily goals, which means that the returns of the ETFs over time should not be expected to be a multiple of the cumulative return off the benchmark for the longer period. This piece illustrates how different volatility levels of a fund's benchmark index can impact the returns of leveraged ETFs for periods greater than a day.

Understanding Impact of Changing Market Exposure of Leveraged ETFs >
Leveraged ETFs performance can be significantly affected both positively and negatively by fluctuating market exposure. This piece provides a clear understanding of how market exposure can affect performance of these investments over time.

An Example of Daily Investment Results >
The return of a benchmark index for a given period tells you little about what that Direxion Shares ETF will return for that same period. The path a benchmark takes to obtain that return can be of much greater consequence. This piece is an actual example of how recent market volatility can affect the investment results of a long and short leveraged ETF pair.

Leveraged ETFs: Pursuing Daily Targets in Volatile Markets >
Intraday exposure levels in Daily 3x ETFs could vary significantly on days when the value of the benchmark Index fluctuates significantly. In this paper we review the characteristics of intraday changes, their associated risks and how to manage them.

Understanding Taxable Distributions >
In relation to traditional ETFs, leveraged index ETFs are generally less tax efficient due to inherent need for daily rebalancing in response to daily market movements. However, most leveraged ETF investors do not think about distributions the same way investors with a long-term 'buy-and-hold' mindset do. More...

An investor should consider the investment objectives, risks, charges, and expenses of Direxion Shares carefully before investing. The prospectus and summary prospectus contain this and other information about Direxion Shares. Click here to obtain a prospectus and summary prospectus. The prospectus and summary prospectus should be read carefully before investing.

The Funds are designed to be utilized only by sophisticated investors, such as traders and active investors employing dynamic strategies. Such investors are expected to monitor and manage their portfolios frequently. Investors in the Funds should (a) understand the consequences of seeking daily investment results, (b) understand the risk of shorting, and (c) intend to actively monitor and manage their investments.

An investment in the Funds involve risk, including the possible loss of principal. The Funds 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 correlation, leverage, compounding, market volatility and specific risks regarding each sector, please read the prospectus.

Distributor: Foreside Fund Services, LLC.