NEW YORK, Dec. 3, 2013 /PRNewswire/ -- Direxion, a leader in alternative investment solutions, will transition two of its leveraged exchange-traded funds (ETFs) to the FTSE China 25 Index. The Direxion Daily FTSE China Bull 3X Shares (YINN) and Direxion Daily FTSE China Bear 3X Shares (YANG) will begin following their new index on December 12, 2013, making them the first pair of 3X leveraged and inverse ETFs in the U.S. to track this composite.
The FTSE China 25 is compiled by global index provider FTSE, and consists of the 25 largest Chinese companies listed on the Stock Exchange of Hong Kong. The index ranks stocks by full market capitalization and weights them by float market capitalization; each company is capped at 10 percent of the entire index. The FTSE China 25 is a subset of the FTSE China Index Series. In common with all FTSE indices, the FTSE China 25 is managed according to a publicly available set of rules and is overseen by an independent committee of seasoned market practitioners.
"As investor interest in the Asian equity markets — and Chinese stocks in particular — continues to grow, we are excited to offer investors exposure to some of the most prominent Chinese companies," said Eric Falkeis, President of Direxion. "By offering both bull and bear funds that track this reliable benchmark, investors can seek to reap healthy returns no matter what their outlook on Chinese equities."
The Direxion Daily FTSE China Bull 3X Shares seeks to generate daily investment results of 300 percent of the performance of the FTSE China 25, before fees and expenses. Conversely, the Direxion Daily FTSE China Bear 3X Shares seeks to obtain daily investment results of 300 percent of the opposite of the performance of the FTSE China 25, before fees and expenses. The Funds were launched in December 2009 and are nearing $100 million in combined assets under management, as of October 31, 2013. The ETFs do not attempt to meet their investment goals for periods longer than one day, and there is no guarantee that their objectives will be achieved.
"FTSE provides benchmarks for more than 60 percent of assets tracking China-themed, U.S.-listed ETFs, and we're delighted by Direxion's adoption of the FTSE China 25 Index," said Jonathan Horton, President of FTSE North America and Head of FTSE's Exchange-Traded Product Service Unit. "Our relationship with Direxion reflects the growing global demand for multiple ETF vehicles offering exposure to the largest and most liquid Chinese stocks."
For more information about Direxion, please contact James Doyle at 973-850-7308 or email@example.com.
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 9/30/13. 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
FTSE is a global leader in indexing and analytical solutions. FTSE calculates thousands of unique indices that measure and benchmark markets and asset classes in more than 80 countries around the world. FTSE indices are used extensively by market participants worldwide for investment analysis, performance measurement, asset allocation and portfolio hedging. Many leading pension funds, asset managers, ETF providers and investment banks work with FTSE to benchmark their investment performance and use FTSE's indices to create world-class ETFs, index tracking funds, structured products and index derivatives. FTSE also provides many exchanges around the world with their domestic indices.
A core set of universal principles guides FTSE's index design and management: FTSE's transparent rules-based methodology is overseen by independent committees of leading market participants, focused on applying the highest industry standards in index design and governance. The foundation of FTSE's global, regional, country and sector indices is the FTSE Global Equity Index Series, which includes the flagship FTSE All-World Index.
FTSE is well known for index innovation and customer partnerships as it seeks to continually enhance the breadth, depth and reach of its offering.
FTSE is wholly owned by London Stock Exchange Group.
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. Downloada prospectus and summary prospectus at www.direxionfunds.com. The prospectus and summary prospectus should be read carefully before investing.
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, market volatility and specific risks regarding South Korean and Brazilian securities, please read the prospectus.
Distributor: Foreside Fund Services, LLC.
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