Understanding Leveraged Exchange-Traded Funds

Direxion Shares Leveraged Exchange-Traded Funds (ETFs) are daily funds that provide 300% leverage and the ability for investors to navigate changing markets with bull and bear flexibility.

Each Direxion Daily Leveraged ETF is designed to seek daily investment results, before fees and expenses, of 300% of the performance (or 300% of the inverse of the performance, in the case of a bear fund), of its benchmark. There is no guarantee that the funds will achieve their objective.

These funds are intended for use only by sophisticated investors who:

  • Understand and accept substantial losses in short periods of time;
  • Understand the unique nature and performance characteristics of funds which seek leveraged daily investment results; and
  • Have time to manage positions frequently to respond to changing market conditions and fund performance

Direxion Shares are investment vehicles for active, sophisticated investors who are looking to gain magnified exposure to the markets. This brochure has provided a detailed explanation as to how these funds operate, as well as a description of certain risks that must be understood before investment is made. It is also important to remember that, particularly in volatile markets, these funds must be monitored closely to ensure that one’s exposure levels are in line with their desired objectives.

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