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. Click here to obtain a Fund’s prospectus and summary prospectus or call 866-476-7523. A Fund’s prospectus and summary prospectus should be read carefully before investing.
Leveraged and Inverse ETFs pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying index over periods longer than one day. They are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk and who actively manage their investments.
Direxion Funds Risks — An investment in the Funds involves risk, including the possible loss of principal. The Funds are non-diversified and include risks associated with concentration risk which results from the Funds’ investments in a particular industry or sector and can increase volatility over time. Active and frequent trading associated with a regular rebalance of a fund can cause the price to fluctuate, therefore impacting its performance compared to other investment vehicles. For other risks including correlation, compounding, market volatility and risks specific to an industry or sector, please read the prospectus.
Direxion Shares ETF Risks — An investment in the ETFs involves risk, including the possible loss of principal. The ETFs are non-diversified and include risks associated with concentration that results from an ETF’s investments in a particular industry, sector or company, which can increase volatility. The leveraged and inverse ETF utilize derivatives, such as futures contracts and swaps which are subject to market risks that may cause their price to fluctuate over time. The leveraged and inverse ETFs do not attempt to, and should not be expected to, provide returns which are a multiple of the return of their respective index or underlying security for periods other than a single day. The leveraged and inverse ETFs may also subject to leverage, correlation, daily compounding, market volatility and risks specific to an industry, sector or company. The non-leveraged ETFs are subject to certain risks, including imperfect index correlation and market price variance, which may decrease performance. The non-leveraged ETFs may invest in a relatively small number of issuers and, as a result, be subject to greater risk of loss with respect to its portfolio securities. The non-leveraged ETFs may experience greater fluctuation in its net asset value as compared to other investments. The non-leveraged ETFs may be appropriate for investors with a long-term investment time horizon, who primarily seek capital growth, and who are able to tolerate periods of prolonged price declines. Please read each ETF’s prospectus for a more complete description of the investment risks. There is no guarantee that an ETF will achieve its investment objective.
Hong Kong Investors — This website and the investment products referenced herein (“Website”) are directed to persons who are “Professional Investors” within the meaning of the Hong Kong Securities and Futures Ordinance (Cap. 571) (“Ordinance”). This Website is not directed to the general public in Hong Kong. You agree that your use of this Website is subject to you reviewing and acknowledging the terms of this disclaimer and the website’s terms of use. Information herein is not intended for Professional Investors in any jurisdiction in which distribution or purchase is not authorized. This Website does not provide investment advice or recommendations, nor is it an offer or solicitation of any kind to buy or sell any investment products. Direxion Asia Limited (“DAL”) is licensed with and regulated by the Securities Futures Commission of Hong Kong (“SFC”) (CE Number: BAZ386) to provide services to Professional Investors. DAL does not maintain nor is it responsible for the contents of this Website, which has not been approved by the SFC. DAL is an affiliate of other companies within the Direxion Group companies which may manage the products and provide the services described herein, which are not directed to the general public in Hong Kong. Companies within the Direxion Group which do not carry out regulated activities in Hong Kong are not subject to the provisions of the Ordinance. Foreside Fund Services, LLC is the distributor for the Direxion Shares in the United States only.
Distributor: Foreside Fund Services, LLC.
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Investment Considerations:
- The article emphasizes the importance of investors carefully considering a fund's investment objective, risks, charges, and expenses before making any investment. This underscores the significance of due diligence in the decision-making process.
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Prospectus and Summary Prospectus:
- The prospectus and summary prospectus of a fund contain vital information that investors should review. This includes details about the Direxion Shares, offering insights into the fund's objectives and potential risks. Investors are encouraged to read these documents thoroughly before deciding to invest.
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Leveraged and Inverse ETFs:
- The article discusses leveraged and inverse exchange-traded funds (ETFs) that pursue daily leveraged investment objectives. These types of ETFs are highlighted as riskier than their non-leveraged counterparts, and their suitability is limited to sophisticated investors who understand leverage risks and actively manage their investments.
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Risks Associated with Direxion Funds:
- Investing in Direxion Funds involves inherent risks, including the potential loss of principal. The funds are non-diversified, and concentration risk is mentioned as a factor that can increase volatility. Active and frequent trading may impact performance, and there are other risks such as correlation, compounding, and market volatility.
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Direxion Shares ETF Risks:
- Similar to the broader Direxion Funds, investing in Direxion Shares ETFs comes with risks, including concentration risk, use of derivatives, and market risks. The leveraged and inverse ETFs may not provide returns that are a multiple of their respective index for periods other than a single day, and they are subject to additional risks like leverage, correlation, daily compounding, and sector-specific risks.
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Non-Leveraged ETFs:
- Non-leveraged ETFs, while still subject to certain risks, are portrayed as more suitable for investors with a long-term investment horizon seeking capital growth. They may invest in a relatively small number of issuers, which increases the risk of loss.
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Hong Kong Investors:
- The article includes a section specifically addressing Hong Kong investors, emphasizing that the information and products mentioned are intended for "Professional Investors" as defined by the Hong Kong Securities and Futures Ordinance. The website is not directed to the general public in Hong Kong.
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Regulatory Compliance:
- Direxion Asia Limited (DAL), mentioned in the article, is licensed and regulated by the Securities Futures Commission of Hong Kong (SFC) to provide services to Professional Investors. It is highlighted that companies within the Direxion Group not engaged in regulated activities in Hong Kong are not subject to the provisions of the Ordinance.
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Distributor Information:
- The distributor for Direxion Shares in the United States is Foreside Fund Services, LLC, indicating the involvement of a third-party entity in facilitating the distribution of these investment products.
In conclusion, the article provides a detailed overview of the considerations, risks, and regulatory aspects associated with investing in Direxion Funds and Direxion Shares ETFs, with a specific focus on Hong Kong investors and regulatory compliance. Investors are urged to exercise caution and conduct thorough research before making investment decisions.
