The next day’s opening market value of the Funds’ issued and outstanding shares, and thus a shareholder’s investment value, will not be affected by the reverse split.

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Five Forward Splits

Additionally, Direxion will execute forward splits of the Direxion Daily Brazil Bull 3X Shares (BRZU), Direxion Daily Real Estate Bull 3X Shares (DRN), Direxion Daily 20+ Treasury Bull 3X Shares (TMF), Direxion Daily Gold Miners Index Bull 3X Shares (NUGT) and the Direxion Daily Junior Gold Miners Index Bull 3X Shares (JNUG).

After the close of the markets on Aug. 24, 2016 (the “Payable Date”), each Fund will affect a split of its issued and outstanding shares as follows:

As a result of these share splits, shareholders of each Fund will receive an additional four, five or 10 shares for each share held of the applicable Fund as indicated in the table above.  Accordingly, the number of each Fund’s issued and outstanding shares will increase by the approximate percentage indicated above.

All share splits will apply to shareholders of record as of the close of NYSE Arca, Inc. (the “NYSE Arca”) on Aug. 23, 2016 (the “Record Date”), payable after the close of the NYSE Arca on the Payable Date. Shares of the Funds will begin trading on the NYSE Arca on a split-adjusted basis on Aug. 25. 2016 (the “Ex-Date”).

Related: Direxion’s New Bearish Junk Bond ETF to Hedge Market Risks

On the Ex-Date, the opening market value of each Fund’s issued and outstanding shares, and thus a shareholder’s investment value, will not be affected by the share split.  However, the per share net asset value (“NAV”) and opening market price on the Ex-Date will be approximately one-fourth, one-fifth or one-tenth for the Funds.  The tables below illustrate the effect of a hypothetical 4-for-1, 5-for-1 and 10-for-1 split on a shareholder’s investment.

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