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Rafferty Asset Management Closing Five Leveraged Exchange-Traded Funds

PRNewswire – The Board of Trustees of the Direxion Shares ETF Trust has decided to liquidate and shutter five exchange-traded funds (“the Funds”) based on the recommendation of Rafferty Asset Management, LLC, the Trust’s advisor.

Due to the Funds’ 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 shuttering the Funds would be in the best interests of the Funds and their shareholders.

The Trust will close the following funds: Direxion Daily Brazil Bear 3X Shares (BRZS), Direxion Daily FTSE Europe Bear 3X Shares (EURZ, formerly Direxion Daily European Bear 3X Shares), Direxion Daily Japan Bear 3X Shares (JPNS), Direxion Daily South Korea Bear 3X Shares (KORZ) and the Direxion Daily Natural Gas Related Bear 3X Shares (GASX).

Shares of the Funds 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 September 23, 2014. Shareholders may sell their holdings in the Funds prior to the closing date, and those transactions are subject to customary brokerage charges. Between the closing date and 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 Funds during that time period.

On September 29, 2014, the Funds will liquidate their assets and distribute cash pro rata to shareholders who have not previously redeemed or exchanged their shares. These payments are taxable and will include any accrued capital gains and dividends. Each Fund’s net asset value will reflect the costs of closing the Fund as calculated on the liquidation date. The Funds will close when the distributions are complete.

The process of closing down and liquidating the Funds’ portfolios, scheduled to take place between September 23, 2014 and September 29, 2014, will result in the Funds not tracking their underlying indexes and experiencing an increase in cash holdings. These developments may not be consistent with each Fund’s investment objective and strategy.

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