BOSTON, Jan. 11, 2012 /PRNewswire/ -- Direxion, a
leader in alternative investment solutions, is pleased to announce
that it has launched three exchange-traded funds that seek to
better control risk in equity investments.
(Photo:
http://photos.prnewswire.com/prnh/20100701/NY29766LOGO )
The Funds track indices in the newly launched S&P Dynamic
Rebalancing Risk Control Index Series. The Direxion S&P 500 RC
Volatility Response Shares (Ticker: VSPY), Direxion S&P 1500 RC
Volatility Response Shares (Ticker: VSPR) and Direxion S&P
Latin America 40 RC Volatility Response Shares (Ticker: VLAT)
follow the S&P 500 Dynamic Rebalancing Risk Control Index,
S&P Composite 1500 Dynamic Rebalancing Risk Control Index and
S&P Latin America 40 Dynamic Rebalancing Risk Control Index,
respectively.
The Funds embody a rules-based investment approach that uses
volatility as a gauge to determine equity exposure. They operate
according to the principle that exposure to equities should be
reduced during periods of higher overall market volatility, and
increased during periods of a more stable (lower volatility) market
environment. Each Fund has a target volatility level for its
corresponding index. When volatility moves above those levels, the
Funds will increase their exposure to U.S. Treasuries and decrease
their exposure to equities. The Funds will proportionately increase
exposure to equities during periods of low market volatility.
The Funds are structured so that adjustments can be made quickly
and frequently, even on a daily basis, as the methodology dictates.
The volatility levels of the corresponding indices are monitored
daily, and equity/U.S. Treasury Bills exposure allocations are
rebalanced on a monthly basis, at minimum.
"These new Funds are an intelligent way for equity investors to
mitigate risk," said Ed Egilinsky,
Managing Director, Alternative Investments at Direxion. "Periods of
higher than average market volatility tend to coincide, with
potentially adverse equity markets, while periods of below average
market volatility tend to represent a more stable environment and a
greater likelihood of favorable equity market conditions. By
tracking indices that use volatility to dictate overall
equity exposure, these Funds serve as a means for investors
to gain exposure to equities, while seeking to help protect their
portfolios."
For more information about Direxion, please contact James Doyle at 973-850-7308 or
jdoyle@jcprinc.com.
About Direxion
Direxion Funds and Direxion Shares, managed by Rafferty Asset
Management, LLC, offer leveraged index funds, ETFs and
alternative-class fund products for investment advisors and
sophisticated investors who seek to effectively manage risk and
return in both bull and bear markets. Founded in 1997, the company
has approximately $7.5 billion in
assets under management as of 9/30/11. The company's business model
is built on continuous product innovation, exceptional customer
service and a commitment to building strategic relationships with
distribution partners. For more information, please visit
www.direxionfunds.com or www.direxionshares.com.
Disclosure:
An investor should consider the investment objectives, risks,
charges, and expenses of Direxion Shares carefully before
investing. The prospectus and summary prospectus contain this and
other information about Direxion Shares. Click here
to obtain a prospectus and summary prospectus or visit our
website at www.direxionshares.com. The prospectus and summary
prospectus should be read carefully before investing.
Risks:
An investment in the Funds involve risk, including the possible
loss of principal. There is no guarantee that the Funds will
achieve their objectives. The Risks associated with the Funds
include: Adverse Market Conditions Risk, Adviser's Investment
Strategy Risk, Counterparty Risk, Depository Receipt Risk,
Derivatives Risk, Foreign Risk, Geographic Concentration Risk, High
Portfolio Turnover Risk, Interest Risk, Leveraged Index Risk,
Liquidity Risk, Market Risk, Non-Diversification Risk, Regulatory
Risk, Small and Mid-Cap Company Risk, Risks of investing in other
Investment Companies and ETFs, Tax and Distribution Risk, Tracking
Error Risk, and Special Risks of Exchange-Traded Funds. See
the prospectus for specific details regarding risk for each
Fund.
The S&P 1500®Index is a composite index of the
S&P 500® Index, S&P 400® Index
and S&P 600® Index, which are composed of stocks
representing the large capitalization, mid capitalization and small
capitalization segments of the U.S. equity market, respectively.
The S&P 500® Index measures the large
capitalization segment of the domestic equity market, composed of
stocks of the 500 domestic companies with the largest
capitalization. The S&P Latin America 40 Index is an index of
40 stocks drawn from four major Latin American markets:
Brazil, Chile, Mexico
and Peru. The constituents are
leading, large, liquid, blue chip companies from the Latin American
markets, capturing 70% of the total market capitalization of each
of their respective Latin American markets. One cannot invest
directly in an index.
Distributor: Foreside Fund Services, LLC
CONTACT: James
Doyle
JCPR
973-850-7308
jdoyle@jcprinc.com
SOURCE Direxion