Direxion S&P 1500® RC Volatility Response Shares

VSPR

 

Symbol Fund Index/Benchmark Bloomberg Index Symbol
VSPR Direxion S&P 1500® RC Volatility Response Shares S&P Composite 1500 Dynamic Rebalancing Risk Control Index SP15M15T

Cusip 25459Y744

Inception date 1.11.12

 

Fund Objective

The Direxion S&P 1500 RC Volatility Response Shares (the "Fund") seeks investment results, before fees and expenses, that track the S&P Composite 1500 Dynamic Rebalancing Risk Control Index (the "Index").

Target Index

The S&P Composite 1500 Dynamic Rebalancing Risk Control Index is designed to respond to the volatility of the S&P 1500® Index. (the "Stock Component"). 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 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 1500 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.

Sector Weightings

 

Data as of 1/11/2012 is subject to change at any time.

Regulatory Documents (including Prospectus, SAI, Semi-Annual Report and Annual Report)

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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.