NEW YORK, January 8 –- NYSE Euronext (NYX) announced that its fully-owned subsidiary NYSE Arca today began trading two Direxion Shares ETFs. The ETFs seek to provide three times the performance (or three times the inverse) of the daily performance of the indexes to which they are tied.
The Direxion Shares ETF Trust is a registered investment company offering a number of separate exchange-traded funds. The Mid Cap Bull 3X Shares seeks daily investment results, before fees and expenses, of 300% of the price performance of the Russell MidCap® Index (the “Mid Cap Index”). The Mid Cap Bear 3X Shares seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the price performance of the Mid Cap Index. (Collectively, the Mid Cap Bull 3X Shares and the Mid Cap Bear 3X Shares are referred to as the “Mid Cap Funds.”)
The Mid Cap Bull 3X Shares, under normal circumstances, creates long positions by investing at least 80% of its net assets in the equity securities that comprise the Mid Cap Index. The Fund will also invest in Financial Instruments that, in combination, provide leveraged and unleveraged exposure to the Mid Cap Index. The Mid Cap Bear 3X Shares does not invest in equity securities. Under normal circumstances, it creates short positions by investing at least 80% of its net assets in Financial Instruments that, in combination, provide leveraged and unleveraged exposure to the Mid Cap Index, and the remainder in Money Market Instruments. On a day-to-day basis, the Mid Cap Bull 3X Shares also holds Money Market Instruments.
Name and ticker symbol of the 2 Direxion Shares ETF Trusts trading on NYSE Arca:
Name of ETF Symbol
Mid Cap Bull 3X Shares MWJ
Mid Cap Bear 3X Shares MWN
Background on Exchange Traded products on NYSE Euronext:
NYSE Euronext operates the world's largest Exchange Traded Products (ETP) marketplace, the leading venue for Exchange Traded Funds (ETF), Notes (ETN), Vehicles (ETV) and Warrants and Certificates trading. NYSE Euronext's offering of Exchange Traded Products provides investors access to regulated listings as well as fast and innovative trading tools to access liquidity. NYSE Arca, NYSE Euronext's US market for ETFs, has 710 primary ETF and ETV listings. Additionally, NYSE Arca lists 85 ETNs, 258 Certificates, while trading all other eligible ETPs on an Unlisted Trading Privileges (UTP) basis. NYSE Euronext, the leading platform for listing and trading Exchange Traded Products in Europe, has 384 primary ETFs, 73 ETV listings, 1 ETN and lists a total of 17,148 Warrants and Certificates as of the end of November 2008.
About NYSE Euronext
NYSE Euronext (NYX) is the world’s leading, most liquid and diverse exchange group. It offers a broad and growing array of financial products and services in cash equities, futures, options, exchange-traded products, bonds, market data, and commercial technology solutions, all designed to meet the evolving needs of issuers, investors and financial institutions. Spanning multiple asset classes and six countries, NYSE Euronext’s exchanges include the New York Stock Exchange, Liffe, Euronext and NYSE Arca. With more than 6,500 listed issues, more than any other exchange group, trading on NYSE Euronext’s equity markets represents more than one-third of the world's cash equities volume. NYSE Euronext also manages the leading European derivatives exchange by value of trading. NYSE Euronext is part of the S&P 500 index and the only exchange operator in the S&P 100 index. For more information, please visit www.nyx.com.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning NYSE Euronext’s plans, objectives, expectations and intentions and other statements that are not historical or current facts. Forward-looking statements are based on NYSE Euronext’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause NYSE Euronext’s results to differ materially from current expectations include, but are not limited to: NYSE Euronext’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk and U.S. and global competition, and other factors detailed in NYSE Euronext’s reference document for 2007 (“document de référence”) filed with the French Autorité des Marchés Financiers (Registered on June 15, 2008 under No. R. 08-054), 2007 Annual Report on Form 10-K and other periodic reports filed with the U.S. Securities and Exchange Commission or the French Autorité des Marchés Financiers. In addition, these statements are based on a number of assumptions that are subject to change. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by NYSE Euronext that the projections will prove to be correct. This press release speaks only as of this date. NYSE Euronext disclaims any duty to update the information herein.
Direxion Shares and Direxion Funds, 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 $1.6 billion in assets under management.
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 visitwww.direxionshares.com. The prospectus should be read carefully before investing.
The use of leverage by a mutual fund increases the risk to the fund. The more a fund invests in leveraged instruments, the more the leverage will magnify gains or losses on those investments. The risks associated with the funds are detailed in the prospectus. These include risks of market timing activity and high portfolio turnover; risk of tracking error; risks of aggressive investment techniques; leverage risk; counterparty risks; risks of non-diversification, interest rate changes and adverse market conditions; risks of shorting instruments; inverse correlation risk; risks of investing in equity securities; risks of investing in small- and mid-capitalization companies, credit risk, risks of investing in real estate instruments; risk of investing in technology companies; concentration risk and geographic concentration risk. Aggressive investing would include the use of futures, enhanced betas, and shorting securities. Shorting securities occurs when investors sell securities they don’t own and are committed to repurchasing eventually.
Direxion Shares are distributed by Foreside Fund Services, LLC.