NEW YORK, Jan. 22, 2014 /PRNewswire/ — Direxion, a leader in alternative investment solutions, has launched a pair of leveraged exchange-traded funds (ETFs) tracking the equity performance of mid- and large-capitalization companies in Europe’s developed markets.
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The Direxion Daily FTSE Europe Bull 3X Shares (EURL) seeks to generate daily investment results of 300 percent of the FTSE Developed Europe Index’s performance, before fees and expenses. The Direxion Daily FTSE Europe Bear 3X Shares (EURZ) attempts to deliver daily investment results, before fees and expenses, of 300 percent of the inverse of the same composite’s performance. The FTSE Developed Europe Index, created and managed by global index provider FTSE, is a free-float-adjusted composite designed to measure the equity market performance of mid- and large-cap segments of developed markets in Europe.
“Now that Europe has exited recession and the global economy is recovering, this is the ideal time to offer active traders an opportunity to gain leveraged exposure to the most liquid stocks in developed European markets,” said Eric Falkeis, President of Direxion. “By following a reliable benchmark from one of the strongest global index providers, Direxion is trying to give short-term investors the best possible chance of receiving healthy returns and additional diversification, regardless of their regional investment outlook.”
As of December 31, 2013, the FTSE Developed Europe Index consisted of companies with market capitalizations between $ 344 million and $ 236.78 billion, and generated total annual return of 26.2 percent. Also as of that date, the index included companies based in 17 countries — Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
An independent committee of leading market professionals oversees the index, which is reviewed on a quarterly basis and derived from the FTSE Global Equity Index Series, which covers 98 percent of global investable market capitalization. Companies listed in the index are categorized according to Industry Classification Benchmark rules.
On December 12, 2013, two of Direxion’s other leveraged ETFs — the Direxion Daily FTSE China Bull 3X Shares (YINN) and Direxion Daily FTSE China Bear 3X Shares (YANG) began following the FTSE China 25 Index.
“On the heels of their recent move to transition two leveraged ETFs to the FTSE China 25 Index, the decision by Direxion to launch two new leveraged ETFs linked to the FTSE Developed Europe Index reinforces our leading approach to both developed and emerging markets,” said Jonathan Horton, President of FTSE North America and Head of FTSE’s Exchange-Traded Product Service Unit. “The expansion of our relationship with Direxion also serves as another indication that global investor confidence is returning — to the point where there is growing demand for leveraged ETF strategies catering to both bull and bear investors.”
The Direxion FTSE Europe Bull 3X Shares and Direxion FTSE Europe Bear 3X Shares do not attempt to meet their investment objectives for periods longer than one day, and there is no guarantee they will achieve their goals.
For more information about Direxion, please contact James Doyle at 973-850-7308 or jdoyle@jcprinc.com.
About Direxion
Direxion Funds and Direxion Shares, managed by Rafferty Asset Management, LLC, offer leveraged index funds, ETFs and alternative-class fund products for investment advisors and sophisticated investors who seek to effectively manage risk and return in both bull and bear markets. Founded in 1997, the company has approximately $ 7.3 billion in assets under management as of 12/31/13. The company’s business model is built on continuous product innovation, exceptional customer service and a commitment to building strategic relationships with distribution partners. For more information, please visit www.direxionfunds.com.
About FTSE Group
All rights in the FTSE Developed Europe Index (the “Index”) vest in FTSE International Limited (“FTSE”). “FTSE(r)” is a trade mark of the London Stock Exchange Group companies and is used by FTSE under licence. The Direxion Daily FTSE Europe Bull 3X Shares and Direxion Daily FTSE Europe Bear 3X Shares (the “Funds”) have been developed solely by Direxion. The Index is calculated by FTSE or its agent. FTSE and its licensors are not connected to and do not sponsor, advise, recommend, endorse or promote the Funds and do not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Index or (b) investment in or operation of the Funds. FTSE makes no claim, prediction, warranty or representation either as to the results to be obtained from the Funds or the suitability of the Index for the purpose to which it is being put by Direxion.
There is no guarantee that the funds will achieve their objectives.
For more information on all Direxion Shares daily leveraged ETFs, go to www.direxionfunds.com, or call us at 866.476.7523.
The ETFs are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk, consequences of seeking daily leveraged investment results and intend to actively monitor and manage their investments. Due to the daily nature of the leverage employed, there is no guarantee of amplified long-term returns. Past performance is not indicative of future results.
An investor should consider the investment objectives, risks, charges, and expenses of Direxion Shares carefully before investing. The prospectus and summary prospectus contains this and other information about Direxion Shares. Download a prospectus and summary prospectus at www.direxionfunds.com. The prospectus and summary prospectus should be read carefully before investing.
Risks:
Investing in the funds may be more volatile than investing in broadly diversified funds. The use of leverage by a fund increases the risk to the fund. The more a fund invests in leveraged instruments the more the leverage will magnify gains or losses on those investments. There is no assurance that the Funds will achieve their objectives and an investment in a Fund could lose money. No single Fund is a complete investment program. The Funds are not designed to, and will not necessarily, track the underlying index or benchmark over a longer period of time. One cannot invest directly in an index.
An investment in the Funds involves risk, including the possible loss of principal. The Funds are non-diversified and include concentration risk that results from the Funds’ investments in a particular industry, sector or geography which can increase volatility. The use of derivatives such as futures contracts, forward contracts, options and swaps are subject to market risks that may cause their price to fluctuate over time. The Fund does not attempt to, and should not be expected to, provide returns which are a multiple of the return of the Index for periods other than a single day. For other risks including correlation, leverage, compounding, and market volatility, please read the prospectus.
Distributor: Foreside Fund Services, LLC.
CONTACT: James Doyle
Jennifer Connelly Public Relations
973-850-7308
jdoyle@jcprinc.com