Direxion announced Friday that it was expediting the change in investment objectives and strategies of 10 daily leveraged and daily inverse leveraged funds.
The investment objective and strategy of each fund in the table below is currently to seek daily leveraged, or daily inverse leveraged, investment results, before fees and expenses, of 300% or -300%, as applicable, of the performance of its underlying index.
Effective after market close on March 31, 2020 each fund’s investment objective and strategy will change to seek daily leveraged, or daily inverse leveraged, investment results, before fees and expenses, of 200% or -200%, as applicable, of the performance of its underlying index, as shown below:
| Ticker | Fund | Underlying Index | New Daily Leveraged Investment Objective
(before fees and expenses) |
| BRZU | Direxion Daily MSCI Brazil Bull 3X Shares | MSCI Brazil 25/50 Index | 200% |
| RUSL | Direxion Daily Russia Bull 3X Shares | MVIS Russia Index | 200% |
| NUGT | Direxion Daily Gold Miners Index Bull 3X Shares | NYSE Arca Gold Miners Index | 200% |
| DUST | Direxion Daily Gold Miners Index Bear 3X Shares | -200% | |
| JNUG | Direxion Daily Junior Gold Miners Index Bull 3X Shares | MVIS Global Junior Gold Miners Index | 200% |
| JDST | Direxion Daily Junior Gold Miners Index Bear 3X Shares | -200% | |
| ERX | Direxion Daily Energy Bull 3X Shares | Energy Select Sector Index | 200% |
| ERY | Direxion Daily Energy Bear 3X Shares | -200% | |
| GUSH | Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares | S&P Oil & Gas Exploration & Production Select Industry Index | 200% |
| DRIP | Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 3X Shares | -200% |
In addition, the “3X” in each fund’s name will be replaced with “2X” as follows:
| Ticker | Current Fund Name | New Fund Name |
| BRZU | Direxion Daily MSCI Brazil Bull 3X Shares | Direxion Daily MSCI Brazil Bull 2X Shares |
| RUSL | Direxion Daily Russia Bull 3X Shares | Direxion Daily Russia Bull 2X Shares |
| NUGT | Direxion Daily Gold Miners Index Bull 3X Shares | Direxion Daily Gold Miners Index Bull 2X Shares |
| DUST | Direxion Daily Gold Miners Index Bear 3X Shares | Direxion Daily Gold Miners Index Bear 2X Shares |
| JNUG | Direxion Daily Junior Gold Miners Index Bull 3X Shares | Direxion Daily Junior Gold Miners Index Bull 2X Shares |
| JDST | Direxion Daily Junior Gold Miners Index Bear 3X Shares | Direxion Daily Junior Gold Miners Index Bear 2X Shares |
| ERX | Direxion Daily Energy Bull 3X Shares | Direxion Daily Energy Bull 2X Shares |
| ERY | Direxion Daily Energy Bear 3X Shares | Direxion Daily Energy Bear 2X Shares |
| GUSH | Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares | Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares |
| DRIP | Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 3X Shares | Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X Shares |
Direxion said each fund had previously disclosed its plan to make these changes effective May 19, 2020.
“Due to recent market volatility and related developments, these changes will now occur on the earlier date stated above,” Direxion said in a release. “For these same reasons and the need to transition each fund’s portfolio to its new investment objective and strategy; it is likely that some or all of the funds will not achieve their current investment objectives of seeking daily leveraged, or daily inverse leveraged, investment results, before fees and expenses, of 300% or -300%, as applicable, of the performance of their underlying index.”
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