Strategic-Index Based ETFs

Direxion S&P Latin America 40 DRRC Volatility Response Shares

Put the lid on volatility with the ETF that seeks to manage risk in your S&P Latin America 40 holdings. Investors know that volatility matters. High volatility is typically associated with negative performance. Positive performance often correlates with low volatility. VLAT tracks an index that automatically increases equity exposure when volatility is low, and decreases equity exposure when volatility is high. The result is a fund that aims to provide an improved risk/return profile relative to traditional index investing.
  • Tickers:

     VLAT
  • CUSIP:

     25459Y710
  • Objective:

     The Direxion S&P Latin America 40 DRRC Index Volatility Response Shares seeks investment results, before fees and expenses, that track the S&P Latin America 40 Dynamic Rebalancing Risk Control Index.
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
Monthly
Quarterly (standardized)

    All Data as of 3/31/2014

    All Data as of 3/31/2014

Symbol Fund 1 Month
(%)
3 Month
(%)
YTD
(%)
1 Year
(%)
3 Year
(%)
5 Year
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10 Year
(%)
Since
Inception
Inception
Date
Expense Ratio *
(Gross/Net %)
Long Term Investment
ETFs
Mutual Funds
Short Term Trading
ETFs
Mutual Funds
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

* For ETFs, the advisor, Rafferty Asset Management, LLC has contractually agreed to waive all or a portion of its management fee and/or reimburse the fund for other expenses through September 1, 2015.

** The expenses are estimated based on projected assets. Please see prospectus for details (from the prospectus dated 3/21/14).

The performance data quoted represents past performance net of annual expenses but gross of any sales charge. The performance shown does not reflect the sales charge, therefore, the effect of the sales charge would reduce the performance shown. 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 less than 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. For the most recent performance, see the “Performance” tab above or call (877) 437-9363.

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 NAV
(4/23/2014)
NAV
Change
($)
NAV
Change
(%)
Market Price Closing
(4/23/2014)
Market Price Closing Change
($)
Market Price Closing Change
(%)
Premium/
Discount
Long Term Investment
ETFs
Mutual Funds
Short Term Trading
ETFs
Mutual Funds

The performance data quoted represents past performance net of annual expenses but gross of any sales charge. The performance shown does not reflect the sales charge, therefore, the effect of the sales charge would reduce the performance shown. 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 less than 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. For the most recent performance, see the “Performance” tab above or call (877) 437-9363.

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
Symbol Fund Index/Benchmark Monthly Target Estimated Current
Exposure Level *
Domestic
DXSLX Monthly S&P 500® Bull 2x Fund S&P 500® 200% 200%
DXSSX Monthly S&P 500® Bear 2x Fund S&P 500® -200% 200%
DXQLX Monthly NASDAQ 100® Bull 2x Fund NASDAQ 100® 200% 200%
DXRLX Monthly Small Cap Bull 2x Fund Russell 2000® 200% 200%
DXRSX Monthly Small Cap Bear 2x Fund Russell 2000® -200% 200%
International
DXZLX Monthly Latin America Bull 2x Fund S&P® Latin America 40 200% 200%
DXHLX Monthly China Bull 2x Fund FTSE/Xinhua China 25 Index 200% 200%
DXELX Monthly Emerging Markets Bull 2x Fund MSCI Emerging Markets Index SM 200% 200%
Fixed Income
DXKLX Monthly 7-10 Year Treasury Bull 2x Fund NYSE 7-10 Year Treasury Bond Index 200% 200%
DXKSX Monthly 7-10 Year Treasury Bear 2x Fund NYSE 7-10 Year Treasury Bond Index -200% 200%
DXCBX Indexed Synthetic Convertible Strategy Fund QES Synthetic Convertible Index -
DXCVX Indexed Synthetic Convertible Strategy Bear Fund QES Synthetic Convertible Index -
Commodity
DXCLX Monthly Commodity Bull 2x Fund Morgan Stanley® Commodity Related Index 200% 200%
Currency
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IMPORTANT NOTICE: Direxion S&P Latin America 40 DRRC Volatility Response Shares will be closed to new investments as of the close of regular trading on the New York Stock Exchange (“NYSE”) on or about January 18, 2013. Please see the supplement to the prospectus for additional details.

Overview

Key Benefits

The Fund aims to provide improved risk/return profile relative to traditional beta1 investing by:

  • Increasing equity exposure during periods of low volatility, to exploit positive trends
  • Employing a downside risk mitigation strategy during periods of high volatility
  • Applying a disciplined strategic index-based methodology to an equity investment strategy

The Strategy at Work

VLAT’s exposure to equities within the S&P Latin America 40 Index is determined by dividing the targeted volatility level of 18%, by the volatility level of the S&P Latin America 40 Index. The fund caps its exposure to equities at 100%.

The index’s exposure is reviewed daily with a minimum rebalance period of one month. However, if at any time the volatility level of the S&P Latin America 40 index crosses certain thresholds defined by the Risk Control Index’s methodology, the fund’s equity exposure will be adjusted accordingly. The following chart illustrates the approximate relationship between the continuum of volatility levels of the S&P Latin America 40 and the resulting equity exposure levels for the fund.

This chart is for illustrative purposes only to generally convey the Fund’s investment strategy. Please refer to prospectus for specific details.

Examples of Exposure Levels Based on Index Volatility

Target Volatility Index Volatility Equity Exposure

18%

10% 100%
18% 100%
30% 60%
61% 30%
88% 20%
100% 18%


*Assets not exposed to equities are allocated to U.S. Treasury bills.

1 beta – a number describing the relation of returns with those of the financial market as a whole

 

Target Index

Target Index 

The S&P Latin America 40® Dynamic Rebalancing Risk Control Index is designed to respond to the volatility of the S&P Latin America 40® Index. (the “Stock Component”). The S&P Latin America 40 Index measures the large capitalization segment of the domestic equity market, composed of stocks of the 500 domestic companies with the largest capitalization. The Index employs a sophisticated methodology designed to control the Index’s risk level by establishing a specific volatility level target that adjusts the Index’s components among an allocation to the stock component and fixed income securities, including U.S. Treasury Bills (the “Cash Component”).

Through the use of an exponential volatility equation, the Index adjusts based upon realized exponentially-weighted historical volatility of the S&P Latin America 40 Index. As volatility increases, exposure to the Stock Component will decrease and exposure to the Cash Component will increase. As volatility decreases, exposure to the Stock Component will increase and exposure to the Cash Component will decrease.

The Index is reviewed daily with a minimum rebalance period of one month. However, if at any time the target volatility level passes the methodologies threshold parameters, the index has the flexibility to readjust as necessary. One cannot invest directly in an index.

Fund Literature

Fund Literature

Download fund literature and regulatory documents

Related Materials

Daily Holdings

Daily Holdings
Click to view the Daily Holdings (csv)