Direxion Volatility Response SharesMany investors look for a way to manage volatility in their portfolios. Often, bear markets tend to occur during periods of high volatility. In turn, when volatility declines, they expect a bull-market trend. Direxion’s Volatility Response ETFs offer strategies that automatically adjust their exposure between equities and U.S. Treasury bills, based on market volatility, allowing long-term investors to: - gain flexible exposure to popular indexes- seek to exploit positive trends during lower volatility periods, and- decrease risk exposure during higher volatility periods Volatility Response ETFs provide a different way to seek better risk-adjusted returns than traditional ETFs that target constant index equity exposure. In order to determine how much of the fund should be invested in the equities within the S&P 1500® index (or S&P 500 index), the fund takes the volatility level of the S&P 1500 (or S&P 500) and divides it by the fund’s targeted volatility level of 15%. (The targeted volatility level used for the S&P Latin America 40 RC Volatility Fund is 18%). The below table illustrates how the S&P 500 RC Volatility Response Fund and S&P 1500 RC Volatility Response Fund would be allocated given the various levels of volatility provided.
Exponential Volatility
Equities
T-Bills
10%
150%
0%
25%
60%
40%
50%
30%
70%
75%
20%
80%
100%
15%
85%
The fund caps its exposure to equities at 150%. The above chart is for illustrative purposes only to generally convey the Fund’s investment strategy. Please refer to prospectus for specific details.
Symbol
Fund
Index/Benchmark
Bloomberg Index Symbol
VSPY
Direxion S&P 500 RC Volatility Response Shares
S&P 500 Dynamic Rebalancing Risk Control Index
SP5M15T
VSPR
Direxion S&P 1500 RC Volatility Response Shares
S&P Composite 1500 Dynamic Rebalancing Risk Control Index
SP15M15T
VLAT
Direxion S&P Latin America 40 RC Volatility Response Shares
S&P Latin America 40 Dynamic Rebalancing Risk Control Index
SPLAM18N
To request more information or to speak to a member of the Direxion team, submit the below form or contact us at 866-476-7523.
Volatility - A statistical measure of the dispersion of returns for a given security or market index.There is no guarantee that the funds will achieve their objectives. An investor should consider the investment objectives, risks, charges, and expenses of Direxion Shares carefully before investing. The prospectus and summary prospectus contain this and other information about Direxion Shares. To obtain a prospectus or summary prospectus, please visit