High Yield Bond Funds

Direxion Dynamic High Yield Bond Fund

An actively managed fund that offers investors long exposure to the High Yield market. This Fund has the potential to be a useful tool within a closely monitored portfolio, since liquid exposure has proven to be beneficial to many investors implementing these strategies in recent years.

  • Tickers:

     PDHYX

  • CUSIP:

     254939762

  • Objective:

     The Dynamic HY Bond Fund seeks to maximize total return (income plus capital appreciation) by investing primarily in debt instruments, including convertible securities, and derivatives of such instruments, with an emphasis on lower-quality debt instruments. The Fund seeks to profit from a decline in the value of lower-quality debt instruments by creating short positions in such instruments and derivatives of such instruments.
Symbol Fund Index/Benchmark Daily/Monthly Target Bloomberg Index Symbol
Long Term Investment
ETFs
Mutual Funds
Short Term TradingAre Direxion Shares ETFs for you?
ETFs
Mutual Funds
PDHYX Dynamic HY Bond Fund Total Return in High Yield Bonds -
Monthly
Quarterly (standardized)

    All Data as of 4/30/2013

    All Data as of 3/31/2013

Symbol Fund 1 Month
(%)		 3 Month
(%)		 YTD
(%)		 1 Year
(%)		 3 Year
(%)		 5 Year
(%)		 10 Year
(%)		 Since
Inception		 Inception
Date		 Expense Ratio *
(Gross/Net %)
Long Term Investment
ETFs
Mutual Funds
Short Term Trading
ETFs
Mutual Funds
PDHYX Dynamic HY Bond Fund NAV 2.00 3.33 3.46 9.31 5.22 3.16 - 2.53 7/1/2004 1.86 / 1.86
Symbol Fund 1 Month
(%)		 3 Month
(%)		 YTD
(%)		 1 Year
(%)		 3 Year
(%)		 5 Year
(%)		 10 Year
(%)		 Since
Inception		 Inception
Date		 Expense Ratio *
(Gross/Net %)
Long Term Investment
ETFs
Mutual Funds
Short Term Trading
ETFs
Mutual Funds
PDHYX Dynamic HY Bond Fund NAV 0.65 1.44 3.46 8.27 5.10 3.48 - 2.33 7/1/2004 1.86 / 1.86
Symbol Fund NAV
(5/23/2013)		 NAV
Change
($)		 NAV
Change
(%)		 Market Price Closing
(5/23/2013)		 Market Price Closing Change
($)		 Market Price Closing Change
(%)		 Premium/
Discount
Long Term Investment
ETFs
Mutual Funds
Short Term Trading
ETFs
Mutual Funds
PDHYX Dynamic HY Bond Fund - $- -% -- -- 0.00

The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate; an investor's shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance quoted. Returns for performance under one year are cumulative, not annualized.

Short-term performance, in particular, is not a good indication of the fund's future performance, and an investment should not be made based solely on returns. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes. For additional information, see the fund's prospectus.

Shares of DirexionShares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Market Price returns are based upon the midpoint of the bid/ask spread at 4:00 PM Eastern time (when NAV is normally determined), and do not represent the returns you would receive if you traded shares at other times. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV. Some performance results reflect expense subsidies and waivers in effect during certain periods shown. Absent these waivers, results would have been less favorable.

Symbol Fund Record Date Ex-Date Pay Date Income Dividend Short Term Capital Gain Long Term Capital Gain
Long Term Investment
ETFs
Mutual Funds
Short Term Trading
ETFs
Mutual Funds
PDHYX Dynamic HY Bond Fund 5/14/2013 5/15/2013 5/15/2013 0.085059000 0.000 -
PDHYX Dynamic HY Bond Fund 4/12/2013 4/15/2013 4/15/2013 0.051974690 0.000 -
PDHYX Dynamic HY Bond Fund 3/14/2013 3/15/2013 3/15/2013 0.062829170 0.000 -
PDHYX Dynamic HY Bond Fund 2/14/2013 2/15/2013 2/15/2013 0.034452170 0.000 -
PDHYX Dynamic HY Bond Fund 12/31/2012 1/3/2013 1/3/2013 0.078897340 0.000 -
PDHYX Dynamic HY Bond Fund 12/13/2012 12/14/2012 12/14/2012 0.464701670 0.000 -
PDHYX Dynamic HY Bond Fund 11/14/2012 11/15/2012 11/15/2012 0.194309480 0.000 -
PDHYX Dynamic HY Bond Fund 10/12/2012 10/15/2012 10/15/2012 0.089650780 0.000 -
PDHYX Dynamic HY Bond Fund 9/13/2012 9/14/2012 9/14/2012 0.103645000 0.000 -
PDHYX Dynamic HY Bond Fund 8/14/2012 8/15/2012 8/15/2012 0.059960950 0.000 -
PDHYX Dynamic HY Bond Fund 5/14/2012 5/15/2012 5/15/2012 0.062505120 0.000 -
PDHYX Dynamic HY Bond Fund 4/12/2012 4/13/2012 4/13/2012 0.072053780 0.000 -
PDHYX Dynamic HY Bond Fund 3/14/2012 3/15/2012 3/15/2012 0.063382200 0.000 -
PDHYX Dynamic HY Bond Fund 2/14/2012 2/15/2012 2/15/2012 0.045903620 0.000 -
PDHYX Dynamic HY Bond Fund 12/30/2011 1/3/2012 1/3/2012 0.046256470 0.000 -
PDHYX Dynamic HY Bond Fund 12/14/2011 12/15/2011 12/15/2011 0.040739370 0.000 -
PDHYX Dynamic HY Bond Fund 11/14/2011 11/15/2011 11/15/2011 0.072876470 0.000 -
PDHYX Dynamic HY Bond Fund 9/14/2011 9/15/2011 9/15/2011 0.029956530 0.000 -
PDHYX Dynamic HY Bond Fund 8/12/2011 8/15/2011 8/15/2011 0.563646830 0.000 -
PDHYX Dynamic HY Bond Fund 6/14/2011 6/15/2011 6/15/2011 0.052310910 0.000 -
PDHYX Dynamic HY Bond Fund 5/12/2011 5/13/2011 5/13/2011 0.053479280 0.000 -
PDHYX Dynamic HY Bond Fund 4/14/2011 4/15/2011 4/15/2011 0.016000150 0.000 -
PDHYX Dynamic HY Bond Fund 2/14/2011 2/15/2011 2/15/2011 0.035120450 0.000 -
PDHYX Dynamic HY Bond Fund 12/20/2010 12/21/2010 12/21/2010 0.178456460 0.000 -
PDHYX Dynamic HY Bond Fund 8/30/2010 8/31/2010 8/31/2010 0.471072520 0.000 -
PDHYX Dynamic HY Bond Fund 5/26/2010 5/27/2010 5/27/2010 0.154090510 0.000 -
PDHYX Dynamic HY Bond Fund 12/16/2009 12/17/2009 12/17/2009 0.027370000 0.000 -
PDHYX Dynamic HY Bond Fund 8/21/2009 8/24/2009 8/24/2009 0.17080 0.000 -
PDHYX Dynamic HY Bond Fund 5/28/2009 5/29/2009 5/29/2009 0.011190000 0.000 -
PDHYX Dynamic HY Bond Fund 4/28/2009 4/29/2009 4/29/2009 0.09804 - -
PDHYX Dynamic HY Bond Fund 2/24/2009 2/25/2009 2/25/2009 0.171810000 0.000 -
PDHYX Dynamic HY Bond Fund 1/23/2009 1/26/2009 1/26/2009 0.177620000 0.000 -
Symbol Fund Index/Benchmark Monthly Target Estimated Current
Exposure Level *
Domestic
DXSLX Monthly S&P 500® Bull 2x Fund S&P 500® 200% 194%
DXSSX Monthly S&P 500® Bear 2x Fund S&P 500® -200% -221%
DXQLX Monthly NASDAQ 100® Bull 2x Fund NASDAQ 100® 200% 193%
DXRLX Monthly Small Cap Bull 2x Fund Russell 2000® 200% 193%
DXRSX Monthly Small Cap Bear 2x Fund Russell 2000® -200% -225%
International
DXZLX Monthly Latin America Bull 2x Fund S&P® Latin America 40 200% 205%
DXHLX Monthly China Bull 2x Fund FTSE/Xinhua China 25 Index 200% 203%
DXELX Monthly Emerging Markets Bull 2x Fund MSCI Emerging Markets Index SM 200% 203%
Fixed Income
DXKLX Monthly 7-10 Year Treasury Bull 2x Fund NYSE 7-10 Year Treasury Bond Index 200% 205%
DXKSX Monthly 7-10 Year Treasury Bear 2x Fund NYSE 7-10 Year Treasury Bond Index -200% -186%
Commodity
DXCLX Monthly Commodity Bull 2x Fund Morgan Stanley® Commodity Related Index 200% 206%
Currency
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Overview

Fund Overview

Finding a fund with daily liquidity in the High Yield market has historically been challenging for most investors. The Dynamic HY Bond Fund, however, is an actively managed fund that offers investors long exposure to the High Yield market. This Fund has the potential to be a useful tool within a closely monitored portfolio, since liquid exposure has proven to be beneficial to many investors implementing these strategies in recent years.

The Dynamic HY Bond Fund seeks to maximize total return (income plus capital appreciation) by investing primarily in debt instruments, including convertible securities, and derivatives of such instruments, with an emphasis on lower-quality debt instruments.

High Yield Investing

High Yield Investing 

High Yield Bonds have the ability to provide investors and advisors with numerous benefits to potentially enhance portfolio performance and risk management. Their inherent potential to provide equity like returns with notably less volatility makes them an attractive option for many asset allocation strategies.

Some benefits of High Yield bonds include:

  • High current income
  • Low correlation to other markets
  • Low sensitivity to interest rates

Obtaining liquidity in the High Yield market with Direxion Funds

Historically, it has been somewhat difficult to get liquid exposure to the High Yield market. This is because transaction costs associated with high yield bond trading have tended to be relatively high. As a result, many fund companies assess fees at redemption to limit the effect of transaction costs on performance.

Direxion’s high yield bond fund features:

  • High current yield;
  • Daily liquidity; and
  • No transaction fees.

By using a credit derivative index1 for core exposure the funds remain liquid, which provides investors with the ability to actively trade the market daily.

Regardless of your perspective of the markets, Direxion offers a fund to help investment professionals and their clients obtain liquid exposure to the High Yield market:

1 By using a credit derivative index, the Fund takes on counterparty risk. Counterparty risk is easily managed with collateral agreements, but represents an incremental risk to the Fund not found in funds without derivative exposure.

Tactically Trading HY

Tactically Trading HY

In addition to providing value to traditional buy and hold asset allocation strategies, high yield bonds can also be an ideal investments for tactically minded investors. Because The Dynamic HY Bond Fund (PDHYX) is extremely liquid, it can be useful to those who are interested in tactically trading this asset class.

Unlike equities, high yield bonds have exhibited lower volatility and have produced favorable results in simple tactical strategies, such as those that incorporate moving averages. Equities do not tend to capture any notable trends in a moving average strategy because of their inherent volatility.

Although many investors and investment professionals are not familiar with the potential benefits of actively trading high yield, many investors have been employing such strategies for years. Active high yield strategies can vary in complexity and composition. For illustrative purposes, Direxion has implemented a simple 50 day moving average on the Lipper Current High Yield Bond Fund Index to illustrate the benefits of actively trading high yield. When the index’s closing value is higher than the average index value for the 50 previous trading days, the strategy calls for a buy. When the index value is lower than the 50-day average, the strategy calls for a sell. From the chart below, it is evident that low volatility makes the High Yield sector attractive for active trading, as seen in the Lipper Active Strategy.

Applying the same strategy to the S&P 500 did not produce the same favorable results. Why? The inherent volatility associated with equites commonly causes many strategies to buy and sell to quickly, not allowing for the caupture of directional trends. Please remember that it is not possible to invest directly in an index.

Direxion works with investment professionals to ensure they have proper tools and information to successfully pursue these strategies. If you would like to learn more about tactically trading high yield, call Direxion today.

Fund Literature

Fund Literature

Download fund literature and regulatory documents

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