Direxion will begin trading its new “Direxion Daily Basic Materials Bull 3X Shares ETF” (NYSE:MATL) Wednesday, June 15, 2011. The Direxion Daily Basic Materials Bull 3X Shares seeks daily investment results, before fees and expenses, of 300% of the price performance of the Russell 1000 Materials & Processing Index. The Basic Materials Index is an index that is comprised of companies that extract or process raw materials, and companies that manufacture chemicals, construction materials, glass, paper, plastic, forest products and related packaging products. The Basic Materials Index also includes metals and minerals miners, metal alloy producers, and metal fabricators.
Principal Investment Strategy. The Direxion Daily Basic Materials 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 Basic Materials Index and/or Financial Instruments. In combination, these equity securities and/or Financial Instruments provide leveraged and unleveraged exposure to the Basic Materials Index. The Direxion Daily Basic Materials 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 Basic Materials Index, and the remainder in Money Market Instruments. On a day-to-day basis, the Direxion Daily Basic Materials Bull 3X Shares also holds Money Market Instruments.
Risks. The principal risks of investing in the Basic Materials Funds are Adverse Market Conditions Risk, Adviser’s Investment Strategy Risk, Aggressive Investment Techniques Risk, Basic Materials Sector Risk, Concentration Risk, Counterparty Risk, Credit Risk, Currency Exchange Rate Risk, Daily Correlation Risk, Daily Rebalancing and Market Volatility Risk, Early Close/Trading Halt Risk, Equity Securities Risk, Foreign Securities Risk, Gain Limitation Risk, Intra-Day Investment Risk, Leverage Risk, Market Risk, Market Timing Activity and High Portfolio Turnover Risk, Negative Implications of Daily Goals in Volatile Markets Risk, Non-Diversification Risk, Regulatory Risk, Risks of Investing in Other Investment Companies and ETFs, Tax and Distribution Risk, Tracking Error Risk, Valuation Time Risk and Special Risks of Exchange Traded Funds.
For the complete prospectus click: HERE