Volatility Tool

Volatility measures the dispersion of returns for a given security or index. Direxion Shares ETFs are, by their nature, volatile. It's important to monitor their volatility levels because high volatility can have a detrimental effect on the performance of leveraged ETFs. Direxion Shares have daily investment objectives and are meant to be short-term trading vehicles. When volatility levels are high, it is even more important to monitor your positions closely to ensure you are maintaining your desired level of exposure to the underlying index, and that the funds returns are in line with your expectations. Please see Understanding the Impact of Changing Market Exposure on Leveraged ETFs, or An Example of Daily Investment Results for more information on this topic.

The volatility tool below is designed to help you better understand the nature of our ETFs and the volatility measure for each, over 10, 30, and 90 day rolling periods. The bars in the graph below represent the level of volatility for each fund, for the selected time period. You may also customize your view by selecting a subset of funds. Click the "customize" link to access this option.

                                                                                                                                       Data as of 6/30/2010





 

 

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.

Investing in funds that invest in specific industries or geographic regions may be more volatile than investing in broadly diversified funds. The use of leverage by a fund means the Funds are riskier than alternative investments which do not use leverage.

The Leveraged ETFs are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk, consequences of seeking daily leveraged investment results and intend to actively monitor and manage their investments. Leverage ETFs are not designed to track the underlying index over a longer period of time.

The risks associated with the funds are detailed in the prospectus which include adverse market condition risk, adviser's investment strategy risk, aggressive investment techniques risk, concentration risk, counterparty risk, credit and lower-quality debt securities risk, equity securities risk, currency exchange risk, daily correlation risk, daily rebalancing and market volatility risk, early close/trading halt risk, depository receipt risk, foreign and emerging markets securities risk, sector securities risk, interest rate risk, inverse correlation risk, leverage risk, market risk, non-diversification risk, retail sector risk, shorting risk, small and mid cap company risk, tracking error risk, market timing activity and high portfolio turnover risk, commodities securities risk, geographic concentration risk, valuation time risk, derivatives risk, risks of investing in small- and/or mid-capitalization companies, natural gas sector risk, negative implications of daily goals in volatile markets risk, risks of investing in mining and metal industry securities, commodity-linked derivatives risk, wholly-owned subsidiary risk, tax and distribution risk, options and futures contracts risks, security selection risk, Debt Instrument Risk, Gain Limitation Risk, Real Estate Investment Risk, U.S. Government Securities Risk, and Special Risks of Exchange-Traded Funds.

Distributor: Foreside Fund Services, LLC.