Direxion to change investment strategies, objective, names of 10 funds

By Toni Weeks

San Diego, Nov. 29 - The board of trustees of the Direxion Shares ETF Trust has approved changes to the names, investment strategies and investment objectives of 10 funds, effective Dec. 1, according to a Direxion press release.

Specifically, each fund's investment objective will seek daily results of 300% (for bull funds) or negative 300% (for bear funds), before fees and expenses, of the performance of its target index. Previously, the funds aimed for daily results of 200% or negative 200% for bull or bear funds, respectively.

The affected funds, along with their new names, are as follows:

• Daily BRIC Bull 2X Shares will become Daily BRIC Bull 3X Shares;

• Daily BRIC Bear 2X Shares will become Daily BRIC Bear 3X Shares;

• Daily India Bull 2X Shares will become Daily India Bull 3X Shares;

• Daily India Bear 2X Shares will become Daily India Bear 3X Shares;

• Daily Gold Miners Bull 2X Shares will become Daily Gold Miners Bull 3X Shares;

• Daily Gold Miners Bear 2X Shares will become Daily Gold Miners Bear 3X Shares;

• Daily Natural Gas Related Bull 2X Shares will become Daily Natural Gas Related Bull 3X Shares;

• Daily Natural Gas Related Bear 2X Shares will become Daily Natural Gas Related Bear 3X Shares;

• Daily Retail Bull 2X Shares will become Daily Retail Bull 3X Shares; and

• Daily Retail Bear 2X Shares will become Daily Retail Bear 3X Shares.

In a Sept. 21 press release, Direxion said that each fund will have the potential for greater gains but will also be subject to the risks of greater losses relative to benchmark performance.

In addition, for a period longer than one day, daily leveraged compounding may be required to reach daily goals. Therefore, the return of a target index over a period of time greater than one day multiplied by the fund's daily target will not generally equal a fund's performance over that same period. This leveraged compounding will have greater effects once the investment objective changes in December.

The funds are managed by New York-based Rafferty Asset Management, LLC.

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