Rafferty Asset Management Closing Three Direxion Value Line® ETFs

Feb 29, 2016, 18:38 ET from Direxion

NEW YORK, Feb. 29, 2016 /PRNewswire/ -- The Board of Trustees of the Direxion Shares ETF Trust has decided to liquidate and close the Direxion Value Line® Small- and Mid-Cap High Dividend ETF (VLSM), Direxion Value Line® Mid- and Large-Cap High Dividend ETF (VLML), and Direxion Value Line® Conservative Equity ETF (VLLV) ("the Funds") based on the recommendation of Rafferty Asset Management, LLC, the Trust's advisor.

Due to the Funds' inability to attract sufficient investment assets, Rafferty believes they cannot continue to conduct their business and operations in an economically efficient manner. As a result, the Board concluded that liquidating and shuttering the Funds would be in the best interest of the Funds and their shareholders.

Shares of the Funds will stop trading on the NYSE Arca, Inc., and will no longer be open to purchase by investors, at the close of regular trading on March 23, 2016 ("the Closing Date"). Shareholders may sell their holdings in each Fund prior to March 23, 2016, and those transactions may be subject to customary brokerage charges. Between March 24, 2016 and March 30, 2016 (the "Liquidation Date"), shareholders may only be able to sell their shares to certain broker-dealers and there is no assurance that there will be a market for the Funds during that time period. Between the Closing Date and the Liquidation Date, each Fund will be in the process of closing down and liquidating its portfolio. This process will result in each Fund increasing its cash holdings and, as a consequence, not tracking its underlying index, which may not be consistent with each Fund's investment objective and strategy.

On or about the Liquidation Date, the Funds will liquidate their assets and distribute cash pro rata to all remaining shareholders who have not previously redeemed or exchanged their shares. These distributions are taxable events. In addition, these payments to shareholders will include accrued capital gains and dividends, if any. As calculated on the Liquidation Date, each Fund's net asset value will reflect the costs of closing the Fund. Once the distributions are complete, the Funds will terminate.

For more information about the liquidation and termination process, please contact Direxion at 800-851-0511. For media inquiries, please contact James Doyle at 973-850-7308 or jdoyle@jcprinc.com.

About Direxion:

Direxion builds bold products for investors who want more than the status quo. Our index-based products deliver directional options, magnified exposure, and long-term, rules-based strategies. Founded in 1997, the company has approximately $9.2 billion in assets under management as of December 31, 2016. Direxion's diverse suite of products helps investors navigate today's ever-changing markets. For more information, please visit www.direxioninvestments.com

There is no guarantee that the funds will achieve their objectives.

For more information on all Direxion ETFs, go to direxioninvestments.com, or call us at 866.476.7523.

An investor should consider the investment objectives, risks, charges, and expenses of Direxion ETFs carefully before investing. The prospectus and summary prospectus contains this and other information about Direxion ETFs.

Direxion Shares Risks – An investment in the Funds involves risk, including the possible loss of principal. The Funds are non-diversified and include risks associated with the Funds' concentrating its investments in a particular industry, sector, or geographic region which can result in increased volatility. Risks of the Funds include Index Correlation/Tracking Risk, Replication Strategy Risk and Mid-Capitalization Company Risk, and risks specific to the Consumer Staples and Health Care sectors.

Distributor: Foreside Fund Services, LLC.


James Doyle





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SOURCE Direxion