New ETFs Provide Exposure to Consumer Discretionary and Consumer Staples Select Sector Indexes
NEW YORK—November 29, 2018— Direxion has added four ETFs to its Daily Leveraged and Inverse Sector ETF lineup, reflecting recent Global Industry Classification Standard (GICS®) sector changes. These new ETFs offer exposure to the existing Consumer Staples sector and to the Consumer Discretionary sector, updated by S&P Dow Jones in September 2018.
|Fund||Symbol||CUSIP||Benchmark||Gross Expense Ratio||Net Expense Ratio*|
|Direxion Daily Consumer Discretionary Bull 3X Shares||WANT||25459Y801||Consumer Discretionary Select Sector Index||1.02%||1.01%|
|Direxion Daily Consumer Discretionary Bear 3X Shares||PASS||25459Y884||Consumer Discretionary Select Sector Index||0.98%||0.97%|
|Direxion Daily Consumer Staples Bull 3X Shares||NEED||25459Y785||Consumer Staples Select Sector Index||1.02%||1.01%|
|Direxion Daily Consumer Staples Bear 3X Shares||LACK||25459Y702||Consumer Staples Select Sector Index||0.98%||
Under the new GICS structure, the Telecommunication Services sector expanded to include telecommunication companies, and select companies from the Consumer Discretionary and Information Technology sectors, and was renamed Communication Services. Consumer Discretionary, which no longer includes media and entertainment companies, continues to primarily offer exposure to retailers, including Amazon and Home Depot. This sector remains an attractive option for growth investors with its continued exposure to stocks with relatively high expected earnings and sales growth. Consumer Staples, on the other hand, retains a greater-orientation toward value stocks with exposure to companies considered to be more essential to daily living, such as Procter & Gamble and Coca-Cola.
“The retail-oriented WANT and PASS allow traders to take bold positions on consumer discretionary stocks, while NEED and LACK will do the same for those looking for leveraged trades on today’s consumer staples stocks,” said David Mazza, Managing Director and Head of Product at Direxion.
Like all leveraged and inverse ETFs, these Direxion products are intended only for investors with an in-depth understanding of the risks associated with seeking leveraged and inverse investment results, and who plan to actively monitor and manage their positions. There is no guarantee that the Funds will meet their objective.Press Release (pdf)
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 $13.4 billion in assets under management as of September 30, 2018. 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 investment 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.
* The Net Expense Ratio includes management fees, other operating expenses and Acquired Fund Fees and Expenses. If Acquired Fund Fees and Expenses were excluded, the Net Expense Ratio would be 0.95%. The Funds’ adviser, Rafferty Asset Management, LLC (“Rafferty”), has entered into an Operating Expense Limitation Agreement with each Fund. Under the Operating Expense Limitation Agreement, Rafferty has contractually agreed to waive all or a portion of its management fee and/or reimburse each Fund for Other Expenses through September 1, 2019, to the extent that the Fund’s Total Annual Fund Operating Expenses exceed 0.95% of the Fund’s average daily net assets (excluding, as applicable, among other expenses, taxes, swap financing and related costs, acquired fund fees and expenses, dividends or interest on short positions, other interest expenses, brokerage commissions and extraordinary expenses). If these expenses were included, the expense ratio would be higher.
An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 646-798-9337 or visit our website at direxioninvestments.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.
Direxion Shares Risks – An investment in each Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with the Funds’ concentrating their investments in a particular industry, sector, or geographic region which can result in increased volatility. The use of derivatives such as futures contracts and swaps are subject to market risks that may cause their price to fluctuate over time. Each Fund does not attempt to, and should not be expected to, provide returns which are three times the return of their underlying index for periods other than a single day.
Direxion Daily Consumer Discretionary Bull & Bear 3X Shares – Risks of each Fund include Effects of Compounding and Market Volatility Risk, Leverage Risk, Counterparty Risk, Intra-Day Investment Risk, risks specific to the Consumer Discretionary Sector, for the Direxion Daily Consumer Discretionary Bull 3X Shares, Daily Index Correlation/Tracking Risk and Other Investment Companies (including ETFs) Risk, and for the Direxion Daily Consumer Discretionary Bear 3X Shares, Daily Inverse Index Correlation/Tracking Risk, and risks related to Shorting and Cash Transactions. The success of companies in the consumer discretionary sector is tied closely to the performance of the overall domestic and international economy, interest rates, competition and consumer confidence, and may be subject to severe competition, which may have an adverse impact on a company’s profitability. Please see the summary and full prospectuses for a more complete description of these and other risks of each Fund.
Direxion Daily Consumer Staples Bull & Bear 3X Shares – Risks of each Fund include Effects of Compounding and Market Volatility Risk, Leverage Risk, Counterparty Risk, Intra-Day Investment Risk, risks specific to the Consumer Staples Sector, for the Direxion Daily Consumer Staples Bull 3X Shares, Daily Index Correlation/Tracking Risk and Other Investment Companies (including ETFs) Risk, and for the Direxion Daily Consumer Staples Bear 3X Shares, Daily Inverse Index Correlation/Tracking Risk, and risks related to Shorting and Cash Transactions. Consumer staples companies are subject to government regulation affecting their products which may negatively impact such companies’ performance. The consumer staples sector may also be adversely affected by changes or trends in commodity prices, which may be influenced or characterized by unpredictable factors. Please see the summary and full prospectuses for a more complete description of these and other risks of each Fund.
Distributor: Foreside Fund Services, LLC.