AMUU and AMDD join NVDU and NVDD
NEW YORK — February 12, 2025 — Direxion, a leading provider of tradeable ETFs, today announced bringing an additional pair of Single Stock Leveraged and Inverse ETFs to market. The two new funds allow active traders to obtain magnified, or inverse, exposure to the daily performance of the common stock of Advanced Micro Devices, Inc. (AMD) through either the Direxion Daily AMD Bull 2X Shares (Ticker: AMUU) or the Direxion Daily AMD Bear 1X Shares (Ticker: AMDD).
Direxion CEO, Douglas YonesAMD has a wealth of digital semiconductor expertise and is well-positioned to prosper from continued favorable trends in both artificial intelligence and data centers. AMUU and AMDD provide focused exposure for traders to express their short-term conviction on a major player in this ever-expanding sector.
The global landscape is rapidly evolving, presenting new challenges and opportunities. As the artificial intelligence and semiconductor industries continue to show promising growth, Direxion is committed to providing traders with timely vehicles to align with the shifting dynamics of the financial markets.
As ground-breaking products built for active traders, Direxion’s pairs of single stock leveraged and inverse ETFs are meant to be used for short-term trading purposes. Leveraged and inverse single stock ETFs should not be viewed as buy and hold investments, but rather trading tools for traders with a high-risk tolerance. In addition, unlike traditional ETFs, or even other levered and/or inverse ETFs, these ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification.
All Direxion leveraged and inverse ETFs are intended only for investors with an in-depth understanding of the risks associated with seeking leveraged investment results, and who plan to actively monitor and manage their positions. There is no guarantee these ETFs will meet their objective. Please visit the Direxion Leveraged and Inverse ETF Education Center, where you will find educational brochures, videos, and a self-paced online course to help you understand if leveraged and inverse ETFs – including single stock ETFs – are right for you.
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, or investing in thematic 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 $47.0 billion in assets under management as of December 31, 2024.
There is no guarantee that the Funds will achieve their investment objectives.
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 prospectus and summary prospectus call 866.476.7523 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.
Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. 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 stock’s performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock’s performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock’s performance increases, and the Bear Fund will lose money even if the underlying stock’s performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in AMD.
Direxion Shares Risks – An investment in a Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund's investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund's other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning.
Leverage Risk – The Bull Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. A total loss may occur in a single day. Leverage will also have the effect of magnifying any differences in the Fund’s correlation with AMD and may increase the volatility of the Bull Fund.
Daily Correlation Risk - A number of factors may affect the Bull Fund’s ability to achieve a high degree of correlation with AMD and therefore achieve its daily leveraged investment objective. The Bull Fund’s exposure to AMD is impacted by AMD’s movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to AMD at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to AMD increases on days when AMD is volatile near the close of the trading day.
Daily Inverse Correlation Risk - A number of factors may affect the Bear Fund’s ability to achieve a high degree of inverse correlation with AMD and therefore achieve its daily inverse investment objective. The Bear Fund’s exposure to AMD is impacted by AMD’s movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to AMD at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to AMD increases on days when AMD is volatile near the close of the trading day.
Advanced Micro Devices, Inc. Investing Risk – AMD faces risks associated with: the highly-competitive nature of the semi-conductor industry, which includes large dominant participants; economic and market uncertainty; reductions in demand for its products; potential concentration of revenues in a few large clients; geopolitical events and pandemics; adequate protection of technology or other intellectual property; exchange rates; among other risks.
Semiconductor Industry Risk – Semiconductor companies may face intense competition, both domestically and internationally, may have limited product lines, markets, financial resources or personnel and may face risks related to the availability of materials.
Technology Sector Risk — The market prices of technology-related securities tend to exhibit a greater degree of market risk and sharp price fluctuations than other types of securities.
Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Industry Concentration Risk, Market Risk, Indirect Investment Risk, and Cash Transaction Risk. Additionally, for the Direxion Daily AMD Bear 1X Shares, Shorting or Inverse Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund.
