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Leveraged ETFs: Pursuing Daily Targets in Volatile Markets

Bull Fund purchased at decreased exposure level

The following examples show various scenarios on how intra-day movements can impact shareholders' exposure levels for Daily 3x Bull and Daily 3x Bear Funds.

The Index, which closed the previous night at $100, rises to $101 by 10:00 AM, causing the Bull fund exposure to decrease to 294%. The Index moves from $101 to $102 during the holding period, a gain of 0.99%. The Bull Fund's NAV rises from $103 to $106 for the period, a gain of 2.91%, which is 294% of the Index move.

Time of Purchase 10:00 AM
Index Value $101
Bull NAV $103
Bull Exposure 294%
Initial Investment $10,000

Time of Sale 2:00 PM
Index Value $102
Bull NAV $106
Fund Return 2.91%
Index Return 0.99%
Fund/Index Return 294%
Investment at Sale $10,294


There is no guarantee the funds will achieve their objective. An investor should consider the investment objectives, risks, charges, and expenses of Direxion Shares carefully before investing. The prospectus contains this and other information about Direxion Shares. To obtain a prospectus please visit www.direxionshares.com. The prospectus should be read carefully before investing.

The Russell Indexes noted herein are trademarks of Russell Investments and have been licensed for use by Direxion Shares. These funds are not sponsored, endorsed, sold or promoted by Russell Investments and Russell Investments makes no representation regarding the advisability of investing in the funds. MSCI indexes are the exclusive property of MSCI and its affiliates. All rights reserved. Indexes are unmanaged and cannot be invested in directly.

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. The prospectus and summary prospectus should be read carefully before investing.

The Funds are designed to be utilized only by sophisticated investors, such as traders and active investors employing dynamic strategies. Such investors are expected to monitor and manage their portfolios frequently. Investors in the Funds should (a) understand the consequences of seeking daily investment results, (b) understand the risk of shorting, and (c) intend to actively monitor and manage their investments.

An investment in the Funds involve risk, including the possible loss of principal. The Funds are non-diversified and include risks associated with concentration risk that results from the Funds' investments in a particular industry or sector which can increase volatility. The use of derivatives such as futures contracts, forward contracts, options and swaps are subject to market risks that may cause their price to fluctuate over time. The Fund does not attempt to, and should not be expected to, provide returns which are a multiple of the return of the Index for periods other than a single day. For other risks including correlation, leverage, compounding, market volatility and specific risks regarding each sector, please read the prospectus.

Distributor: Foreside Fund Services, LLC.