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Rafferty Asset Management closing Inverse Equity ETF

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The Board of Trustees of the Direxion Shares ETF Trust has decided to liquidate and close the Direxion Daily Total Market Bear 1X Shares (TOTS) based on the recommendation of Rafferty Asset Management, the Trust's advisor.

Due to the Fund's inability to attract sufficient investment assets, Rafferty believes they cannot continue to conduct their business and operations in an economically efficient manner. As a result, the Board concluded that liquidating and closing the Fund would be in the best interest of the Fund and its shareholders.

Shares of the Fund will stop trading on the NYSE Arca, Inc., and will no longer be open to purchase by investors, at the close of regular trading on 15 July, 2016 (the Closing Date). Shareholders may sell their holdings in the Fund prior to 15 July, 2016, and those transactions may be subject to customary brokerage charges. Between 18 July, 2016 and 22 July, 2016 (the Liquidation Date), shareholders may only be able to sell their shares to certain broker-dealers and there is no assurance there will be a market for the Fund during that time period. 

Between the Closing Date and the Liquidation Date, the Fund will be in the process of closing down and liquidating its portfolio. This process will result in the Fund increasing its cash holdings and, as a consequence, not tracking its underlying index, which may not be consistent with the Fund's investment objective and strategy.

On or about the Liquidation Date, the Fund will liquidate its assets and distribute cash pro rata to all remaining shareholders who have not previously redeemed or exchanged their shares. These distributions are taxable events. In addition, these payments to shareholders will include accrued capital gains and dividends, if any. As calculated on the Liquidation Date, the Fund's net asset value will reflect the costs of closing the Fund. Once the distributions are complete, the Fund will terminate.

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