QQQE Direxion NASDAQ-100 Equal Weighted Index Shares ETF

Overview

The Direxion NASDAQ-100® Equal Weighted Index Shares seeks investment results, before fees and expenses, that track the NASDAQ-100® Equal Weighted Index.

Fact Sheet  ETF Guide  Prospectus

Key Features of the Fund

Key Benefits

QQQE provides equal-weight exposure to all NASDAQ-100® index holdings, allowing you an opportunity to manage risk in your portfolio through:

  • Broader diversification beyond technology sector stocks which may help reduce concentration risk

  • Greater performance contribution from companies with smaller market capitalization

  • Quarterly rebalancing for consistent equal-weighting, after regular market fluctuations

The Strategy at Work

Performance contribution in market weighted indexes such as the S&P 500 Index or NASDAQ-100 Index is typically driven by a small number of very large companies with market caps that are considerably higher than the average. Most of the other stocks in the index are typically below the average weight of the index.

By contrast The NASDAQ-100 Equal Weighted Index allots the same weight, or importance, to each stock in the index.

The result is a more diversified performance contribution from the individual companies, and sectors that are in the index.

The table below shows how market-cap weighting in the NASDAQ-100 Index concentrates exposure to specific companies and sectors, which affects the diversification, and risk properties of the index.

Top Ten Holdings (%) of the NASDAQ® by market cap vs. the same holdings in the NASDAQ® 100 Eq Weighted

NASDAQ-100® Equal Weight Index (NDXE)

 

NASDAQ-100® Index (NDX)

 

 

Holdings

Weighting (%)

 

Holdings

Weighting (%)

 

Difference (%)

Apple Inc

1.00

 

Apple Inc

11.92

 

-10.92

Microsoft Corp

1.00

 

Microsoft Corp

8.47

 

-7.47

Google Inc

1.00

 

Google Inc

7.77

 

-6.77

Amazon.com Inc

1.00

 

Amazon.com Inc

3.85

 

-2.85

QUALCOMM Inc

1.00

 

QUALCOMM Inc

3.32

 

-2.32

Intel Corp

1.00

 

Intel Corp

3.20

 

 -2.20

Facebook

1.00

 

Facebook

2.96

 

-1.96

Cisco Systems Inc

1.00

 

Cisco Systems Inc

2.87

 

-1.87

Gilead Sciences Inc

1.00

 

Gilead Sciences Inc

2.71

 

 -1.71

Comcast Corp

1.00

 

Comcast Corp

2.66

 

 -1.66

Source: Bloomberg. Data as of 3/31/2014.

For the Direxion NASDAQ-100® Equal Weighted Index, the sector weight is simply a direct function of the number of companies in the sector. The table below demonstrates the difference in weighting between the NASDAQ 100 Market Cap Weighted Index and the Equal Weighted Index. Equal weighting allows increased exposure to 6 of the 7 sectors in the index, as well as decreased exposure to the Information Technology sector.

NASDAQ-100® Equal Weight Index (NDXE)

 

NASDAQ-100® Index (NDX)

 

 

Sectors

Weighting (%)

 

Sectors

Weighting (%)

 

Difference (%)

Information Technology

42.00

 

Information Technology

58.23

 

-16.23

Consumer Discretionary

28.00

 

Consumer Discretionary

19.84

 

+8.16

Health Care

14.00

 

Health Care

13.90

 

+0.10

Consumer Staples 

6.00

 

Consumer Staples

4.76

 

+1.24

Industrials

6.00

 

Industrials

1.85

 

+4.15

Telecomm. Services

3.00

 

Telecomm. Services

1.14

 

+1.86

Materials

1.00

 

Materials

0.28

 

+0.72

 Source: Bloomberg. Data as of 3/31/2014.

Target Index

Target Index 

The NASDAQ 100 Equal Weighted Index includes 100 of the largest non-financial securities listed on NASDAQ®, but instead of being weighted by market capitalization, each of the constituents is initially set at 1.00%. The index is reviewed and adjusted annually in December, but replacements may be made any time throughout the year. The index is rebalanced quarterly in March, June, September and December. One cannot invest in an index.

Index Sector Weightings (%)
(as of 3/31/2014)

Information Technology

42.0%

Consumer Discretionary

28.0%

Industrials

14.0%

Health Care

6.0%

Consumer Staples

6.0%

Telecommunication Services

3.0%

Materials

1.0%

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Daily Holdings

Fund Symbol QQQE
Bloomberg Index Symbol NDXE
CUSIP 25459Y207
ISIN US25459Y2072
Gross Expense Ratio 1.58%
Net Expense Ratio 0.35%
Inception Date Mar 21, 2012

Pricing and Performance

Price Information
NAVs and market price information as of July 21, 2014

Ticker Fund Name NAV NAV Change $ NAV Change % Market Price Closing Market Price Closing Change($) Market Price Closing Change(%) Premium / Discount
QQQE Direxion NASDAQ-100® Equal Weighted Index Shares 58.26 -0.17 -0.29 58.12 -0.30 -0.51 -0.14

Performance
NAVs and market price information as of July 21, 2014

All data as of 6/30/2014
Ticker Fund Name   1 Mo % 3 Mo % YTD 1 YR % 3 YR % 5 YR % 10 YR % Since Inception Inception Date Expense Ratio* (Gross/Net %)
QQQE Direxion NASDAQ-100® Equal Weighted Index Shares NAV 3.49 5.44 8.07 30.90 19.03 1.58 / 0.35
Market Close 3.64 5.39 8.07 30.44 19.04
All data as of 6/30/2014
Ticker Fund Name   1 Mo % 3 Mo % YTD 1 YR % 3 YR % 5 YR % 10 YR % Since Inception Inception Date Expense Ratio* (Gross/Net %)
QQQE Direxion NASDAQ-100® Equal Weighted Index Shares NAV 3.49 5.44 8.07 30.90 19.03 1.58 / 0.35
Market Close 3.64 5.39 8.07 30.44 19.04

Rafferty has contractually agreed to waive all or a portion of its fees and/or reimburse the fund for expenses through September 1, 2015, to the extent that the funds net annual operating expenses exceed 0.65%.

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 or summary prospectus.

Distributions

Ticker Fund Name Record Date Ex Date Pay Date Income Dividend Short-Term Capital Gain Long-Term Capital Gain
QQQE Direxion NASDAQ-100® Equal Weighted Index Shares 0.08312
QQQE Direxion NASDAQ-100® Equal Weighted Index Shares 0.2349
QQQE Direxion NASDAQ-100® Equal Weighted Index Shares 0.1764
QQQE Direxion NASDAQ-100® Equal Weighted Index Shares 0.0292
QQQE Direxion NASDAQ-100® Equal Weighted Index Shares 0.09619
QQQE Direxion NASDAQ-100® Equal Weighted Index Shares 0.07965
QQQE Direxion NASDAQ-100® Equal Weighted Index Shares 0.33101
QQQE Direxion NASDAQ-100® Equal Weighted Index Shares 0.22653