Closures Due to Limited Interest Since Launch
NEW YORK - June 21, 2024 - Due to their inability to attract sufficient investment assets, the Board of Trustees of the Direxion Shares ETF Trust has decided to liquidate and close three ETFs (each, a "Fund" and collectively, the "Funds"), based on the recommendation of the Funds' adviser, Rafferty Asset Management, LLC. The Board concluded that liquidating and closing the Funds would be in the best interest of the Funds and their shareholders. The Funds closing are as follows:
Fund / Ticker / CUSIP
Direxion Hydrogen ETF / HJEN / 25460G617 Direxion Moonshot Innovators ETF / MOON / 25460G732 Direxion Daily Global Clean Energy Bull 2X Shares / KLNE / 25460G526
The Funds will cease trading on the NYSE Arca, Inc. ("NYSE") and will be closed to purchase by investors as of the close of regular trading on the NYSE on July 19, 2024 (the "Closing Date"). The Funds will not accept purchase orders after the Closing Date.
Shareholders may sell their holdings in a Fund prior to the Closing Date and customary brokerage charges may apply to these transactions. However, from July 19, 2024 through July 30, 2024 (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 a Fund's shares during this time period. From June 21, 2024 until the Liquidation Date, each Fund will be in the process of closing down and liquidating its portfolio. This process will result in a Fund increasing its cash holdings and, as a consequence, not tracking its underlying index, which is inconsistent with each Fund's investment objective and strategy.
On or about the Liquidation Date, each Fund will liquidate its assets and distribute cash pro rata to all shareholders who have not previously redeemed or sold their shares. These distributions are taxable events. In addition, these payments to shareholders may include accrued capital gains and dividends. 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.
About Direxion
Direxion equips investors who are driven by conviction with ETF solutions built for purpose and fine-tuned for precision. These solutions are available for a broad spectrum of investors, whether executing short-term tactical trades, or investing in thematic strategies. Direxion's reputation is founded on developing products that precisely express market perspectives and allow investors to manage their risk exposure. Founded in 1997, the company has approximately $42.3 billion in assets under management as of March 31, 2024. For more information, please visit www.direxion.com.
NEW YORK - June 21, 2024 - Due to their inability to attract sufficient investment assets, the Board of Trustees of the Direxion Shares ETF Trust has decided to liquidate and close three ETFs (each, a "Fund" and collectively, the "Funds"), based on the recommendation of the Funds' adviser, Rafferty Asset Management, LLC. The Board concluded that liquidating and closing the Funds would be in the best interest of the Funds and their shareholders. The Funds closing are as follows:
Fund / Ticker / CUSIP
Direxion Hydrogen ETF / HJEN / 25460G617 Direxion Moonshot Innovators ETF / MOON / 25460G732 Direxion Daily Global Clean Energy Bull 2X Shares / KLNE / 25460G526
The Funds will cease trading on the NYSE Arca, Inc. ("NYSE") and will be closed to purchase by investors as of the close of regular trading on the NYSE on July 19, 2024 (the "Closing Date"). The Funds will not accept purchase orders after the Closing Date.
Shareholders may sell their holdings in a Fund prior to the Closing Date and customary brokerage charges may apply to these transactions. However, from July 19, 2024 through July 30, 2024 (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 a Fund's shares during this time period. From June 21, 2024 until the Liquidation Date, each Fund will be in the process of closing down and liquidating its portfolio. This process will result in a Fund increasing its cash holdings and, as a consequence, not tracking its underlying index, which is inconsistent with each Fund's investment objective and strategy.
On or about the Liquidation Date, each Fund will liquidate its assets and distribute cash pro rata to all shareholders who have not previously redeemed or sold their shares. These distributions are taxable events. In addition, these payments to shareholders may include accrued capital gains and dividends. 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.
About Direxion
Direxion equips investors who are driven by conviction with ETF solutions built for purpose and fine-tuned for precision. These solutions are available for a broad spectrum of investors, whether executing short-term tactical trades, or investing in thematic strategies. Direxion's reputation is founded on developing products that precisely express market perspectives and allow investors to manage their risk exposure. Founded in 1997, the company has approximately $42.3 billion in assets under management as of March 31, 2024. For more information, please visit www.direxion.com.
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