Direxion Launches Three First of Their Kind ETFs
Strategies Seek to Target Downside Risk Management, Sustainable Growth, and Potential Outperformance.
NEW YORK—June 11, 2020— Direxion has expanded its range of buy and hold products with the launch of the three new ETFs: the Direxion Dynamic Hedge ETF (Ticker: DYHG, NetExpense Ratio: 0.57%), the Direxion High Growth ETF (Ticker: HIPR, Expense Ratio: 0.40%), and the Direxion Fallen Knives ETF (Ticker: NIFE, Expense Ratio: 0.50%).
“Recent market events have reminded investors about the need for diversification and created opportunities to introduce unique exposures in portfolios,” said Dave Mazza, Managing Director at Direxion. “We’re excited to introduce these strategies to help investors build more robust portfolios in a challenging market environment.”
The last few months have once again highlighted the foundational challenge for most risk averse investors – how to cost-effectively limit downside impact, while still participating in the upside of the markets over time. DYHG, which seeks investment results that track the Salt truVolTM US Large Cap Dynamic Hedge Index, is a potential core equity holding offering a systematic hedging methodology that seeks to responsively mitigate market risk. “Salt Financial is excited to partner with Direxion in bringing the Direxion Dynamic Hedge ETF to market to help investors better manage portfolio risk,” said Tony Barchetto, CFA, Founder and Chief Investment Officer of Salt Financial. The strategy leverages truVol™, Salt’s proprietary analytic tool that uses intraday price data to aim for more accurate and responsive estimates of future volatility, as compared to traditional measures using only end-of-day prices.
HIPR seeks to track the investment results of the Russell 1000 Hyper Growth Index, a rules-based methodology that targets stocks with an attractive combination of traditional growth stock measures – such as revenue, earnings, and cash flow growth – as well as appealing quality and price momentum measures. This combination results in a portfolio of large and mid-cap domestic companies with the potential for both high and sustained growth over time, rather than targeting traditional growth stock measures alone.
Finally, NIFE seeks to track investment results of the Indxx US Fallen Knives Index, which identifies companies that have experienced significant price deterioration, making them possibly poised for a price revival. Investing in stocks that may be subject to some short-term controversy – fallen knives – is a commonly deployed strategy. It, however, requires a disciplined, rules-based approach in order to separate those with likely temporary (rather than secular) business and price declines. Screening for eligible names that have both recently experienced substantial price decline, but maintained strong measures of financial health, increases the likelihood of a price rebound and offers the opportunity for a highly differentiated exposure.
“As noted earlier this year, Direxion remains committed to introducing new products that offer exposure to longer-term investment themes, while remaining a leading Leveraged and Inverse ETF provider for traders,” said Rob Nestor, President at Direxion.
About Direxion:
Direxion equips investors who are driven by conviction with ETF solutions built for purpose and fine-tuned for precision. These solutions are available for a broad spectrum of investors, whether executing short-term tactical trades, investing in macro themes, or building long-term asset allocation strategies. Direxion’s reputation is founded on developing products that precisely express market perspectives and allow investors to manage their risk exposure. Founded in 1997, the company has approximately $11 billion in assets under management as of March 31, 2020. For more information, please visit www.direxion.com.
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There is no guarantee that the Funds will achieve their investment objectives.
For more information on all Direxion Shares daily leveraged ETFs, go to direxion.com, or call us at 866.476.7523.
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 866-716-0735 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.
Market Disruptions Resulting from COVID-19. The outbreak of COVID-19 has negatively affected the worldwide economy, individual countries, individual companies and the market in general. The future impact of COVID-19 is currently unknown, and it may exacerbate other risks that apply to the Funds.
Direxion Shares Risks - Investing in the ETFs involves risk including possible loss of principal.
DYHG Risks –There is no guarantee that the investment strategy will be successful in providing risk mitigation The Fund’s investment in derivatives may pose risks in addition to, and greater than, those associated with directly investing in or shorting securities or other investments. Futures markets are highly volatile and the futures market may increase the Fund’s volatility. Risks of the Fund include, but are not limited to, Index Correlation/Tracking Risk, Index Strategy Risk, Market Disruption Risk, Long/Short Risk, Volatility Risk, Shorting Risk, Derivatives Risk, risks associated with the market capitalizations of the securities in which the Fund may invest, and risks related to investment in a specific industry or sector. Please see the summary and full prospectuses for a more complete description of these and other risks of the Fund.
HIPR Risks -There is no guarantee that the investment strategy will be successful in identifying high growth stocks. Investing in growth securities involves risk. Growth companies usually invest a high portion of earnings in their businesses and may lack the dividends of value stocks that can cushion stock prices in a falling market. Growth stocks may be volatile and may also be more expensive, relative to their earnings or assets, compared to value or other stocks. Additional risks of the Fund include, but are not limited to, Index Correlation/Tracking Risk, Index Strategy Risk, Market Disruption Risk, Growth Investing Risk, Momentum Securities Risk, Quality Securities Risk, Communication Services Sector Risk, Consumer Discretionary Sector Risk, and Information Technology Sector Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of the Fund.
NIFE Risks -There is no guarantee that the investment strategy will be successful or that U.S equity securities that have experienced considerable share price declines may continue to decline and there is no guarantee they will provide positive returns. Risks of the Fund include, but are not limited to, Index Correlation/Tracking Risk, Index Strategy Risk, Market Disruption Risk, risks associated with the market capitalizations of the securities in which the Fund may invest, and risks related to investment in a specific industry or sector. Please see the summary and full prospectuses for a more complete description of these and other risks of the Fund.