Direxion HCM Tactical Enhanced US ETF

The Fund uses a proprietary quantitative investment model based on the HCM-BuyLine® (the “Model”) developed by the Fund’s subadvisor, Howard Capital Management, Inc. (“Subadviser”), to determine if the Fund’s assets are allocated to U.S. equity securities or to cash and cash equivalents (i.e., money market funds, U.S. government securities and/or similar securities). The Fund will invest in or have exposure to, U.S. equity securities in order to achieve capital appreciation, or will invest in cash or cash equivalents in order to attempt to preserve capital during market downturns. When allocated to U.S. equities, the Fund will seek leveraged exposure of its net assets through investments in derivatives, such as swaps, in order to achieve enhanced returns.

When the Fund is allocated to U.S. equity securities, it will have approximately the following daily exposures: 80% to the S&P 500®, 80% to QQQ, and up to 40% to the Sector Allocation.** The Fund will utilize leverage to achieve total exposure of up to 200% of the Fund’s net assets to these allocations. A Sector Allocation of less than 40% may result in the Fund having less than 200% total exposure each day.

The Subadviser provides the Fund’s investment adviser, Rafferty Asset Management, LLC (“Adviser”), with investment signals (“Investing Signals”) pursuant to the Model’s determinations. The Adviser is responsible for investing the Fund’s assets pursuant to the Investing Signals and may rebalance the Fund’s portfolio as frequently as daily when invested in U.S. equity securities so that its exposure to the allocations is consistent with the Fund’s investment strategy.

Howard Capital Management, Inc. (HCM) is a SEC-Registered Investment Advisory Firm founded by Vance Howard, which offers professional money management services to private clients, financial advisors, and registered investment advisors through a suite of separately managed accounts, retirement tools, self-directed brokerage accounts, proprietary mutual funds and ETFs. HCM has $4 Billion in Assets Under Management.

The Direxion Shares ETF Trust is a registered investment company offering a number of separate exchange-traded funds. Rafferty Asset Management, LLC serves as the investment adviser to the Fund and Howard Capital Management, Inc. serves as the subadviser to the Fund.

• HCM-BuyLine relies on rules based technical indicators to determine whether to invest in U.S. Equities or Cash.
• A buy signal is triggered when the S&P 500 closes above the HCM-BuyLine for a period of five consecutive days.
• When the S&P 500 closes below the HCM-BuyLine based on a pre- determined percentage threshold, a downtrend is established and the Model generates a sell signal and goes to Cash.
• When the Model generates a buy signal the Fund will allocate equally to the S&P 500 and QQQ with an additional satellite exposure to the top ranked sector or industry**

**The S&P 500 Index measures the performance of 500 large capitalization companies listed on stock exchanges in the U.S. The QQQ represents all of the 100 largest, U.S.-based, non-financial companies listed on the NASDAQ Stock Exchange. The Sector Allocation is the securities of a specific sector or industry. The Sector Allocation will be in one of the following 13 sectors or industries: industrial sector, communication services sector, consumer discretionary sector, consumer staples sector, energy sector, financial sector, health care sector, real estate sector, technology sector, utilities sector, materials sector, biotechnology industry and semiconductor industry.