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Fund Information
The Financial Trends Strategy Fund |
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The Financial Trends Strategy FundInvestment objectiveThe Financial Trends Strategy Fund seeks to match the performance of the Financial Trends Indicator (FTI™), which offers pure currency and financial futures exposure that seeks to benefit in all market conditions, through its unique long/short exposure. Principal investment strategyThe Fund invests primarily in currency and financial futures. Like the FTI the Fund’s investments in each component will be positioned long or short, depending upon price trends within that component. |
What is the FTI?
The FTI is a composite of financial futures that seeks the economic benefit of trends in the U.S. government fixed income and currency markets. The FTI follows a quantitative methodology to track the prices of eight major financial futures. The FTI employs a methodology pursuant to which each component is positioned long or short, based on its price behavior relative to its average price over a recent period, in an attempt to capture the long-term economic advantages of rising and declining trends in the U.S. government fixed income and currency markets. The FTI components are rebalanced on a monthly basis.
By tracking the FTI™, the Direxion Financial Trends Strategy Fund provides long or short exposure to financial and currency futures, including the:
| € Euro | ¥ Japanese yen | |||
| £ British pound | SFr. Swiss franc | |||
| $ Australian dollar | $ Canadian dollar | |||
| $ U.S. Treasury Notes | $ U.S. Treasury Bonds |
The FTI’s methodology
Limiting the volatility of the Indicator was a key factor in determining the FTI’s methodology. Most of the components of the FTI have a low correlation to each other. In addition, there is low correlation between the Indicator’s components and the equity and fixed income markets. The FTI rules-based methodology, with its long/short mechanism, captures (in aggregate) both the upward and downward price trends of its components. Components of the Indicator are chosen primarily on the basis of their liquidity and global importance. All of the components of the Indicator are consistently in the lists of top futures contracts traded globally.
| The Financial Trends Strategy Fund |
Why Financial Futures |
Why a Long/Short Financial Futures Strategy? |
Why Invest in the fund |
Advantages |
An investor should consider the investment objectives, risks, charges, and expenses of the Direxion funds carefully before investing. The prospectus contains this and other information about Direxion funds. To obtain a prospectus, please contact Direxion Funds at 800.851.0511. The prospectus should be read carefully before Investing. Investing in funds that invest in specific industries or geographic regions may be more volatile than investing in broadly diversified funds.
The risks associated with the Direxion Financial Trends Strategy Fund are detailed in the prospectus and Statement of Additional Information (available upon request, free of charge). These include, but are not limited to, risks of high portfolio turnover; risk of tracking error; leverage, derivatives and counterparty risks; risk of non-diversification; risk of interest rate changes; risks of investing in other investment companies and Exchange-Traded Funds (ETFs); risks of investing in equity securities and foreign instruments; risks of currency exchange rates; market risk, risk of options and futures contracts; risk of shorting instruments; volatile markets; security selection risk; credit risk; and valuation time risk.