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Rafferty Asset Management closing equity ETF

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Direxion Shares ETF Trust has decided to liquidate and close the Direxion iBillionaire Index ETF (IBLN) based on the recommendation of Rafferty Asset Management,, the Fund’s adviser. 

The Fund will cease trading on the NYSE Arca (NYSE) and will be closed to purchase by investors as of the close of regular trading on the NYSE on 6 April, 2018. The Fund will not accept purchase orders after the Closing Date.

Due to the Fund’s inability to attract sufficient investment assets, Rafferty believes they cannot continue to operate the Fund 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.
Shareholders may sell their holdings in the Fund prior to the Closing Date and customary brokerage charges may apply to these transactions. However, from April 6, 2018 through April 13, 2018 (the “Liquidation Date”) shareholders may only be able to sell their shares to certain broker-dealers and there is no assurance that there will be a market for the Fund’s shares during this 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 is inconsistent 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 shareholders who have not previously redeemed or sold their shares. These distributions are taxable events. In addition, these payments to shareholders may include accrued capital gains and dividends. 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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