PR Newswire | Jul 27, 2020 06:47PM EDT

07/27 17:47 CDT

Direxion Announces Reverse Splits of Six Daily Leveraged ETFs NEW YORK, July 27, 2020

NEW YORK, July 27, 2020 /PRNewswire/ -- Direxion has announced it will execute a reverse split of the issued and outstanding shares of the Direxion Daily S&P Biotech Bear 3X Shares, Direxion Daily Semiconductor Bear 3X Shares, Direxion Daily Communication Services Index Bear 3X Shares, Direxion Daily Consumer Discretionary Bear 3X Shares, Direxion Daily Dow Jones Internet Bear 3X Shares, and the Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X Shares (each, a "Fund" and collectively, the "Funds"). The total market value of the shares outstanding will not be affected as a result of these splits, except with respect to the redemption of fractional shares, as outlined below.

After the close of the markets on August 27, 2020, the Funds will affect reverse splits of their issued and outstanding shares as follows:

Reverse Approximate decrease inFund Name Split Ratiototal number of outstanding shares

Direxion Daily S&P Biotech Bear 3X Shares1 for 20 95%

Direxion Daily Semiconductor Bear 3X 1 for 12 92% Shares

Direxion Daily Communication Services 1 for 10 90% Index Bear 3X Shares

Direxion Daily Consumer Discretionary 1 for 10 90% Bear 3X Shares

Direxion Daily Dow Jones Internet Bear 3X1 for 10 90% Shares

Direxion Daily S&P Oil & Gas Exp. & Prod.1 for 10 90% Bear 2X Shares

Please note the CUSIP changes, effective August 28, 2020:

Fund Name TickerCurrent CUSIPNew CUSIP

Direxion Daily S&P Biotech Bear 3X Shares LABD 25460E539 25460G716

Direxion Daily Semiconductor Bear 3X Shares SOXS 25460E182 25460G690

Direxion Daily Communication Services Index MUTE 25460E489 25460G682Bear 3X Shares

Direxion Daily Consumer Discretionary Bear 3X PASS 25459Y884 25460G674Shares

Direxion Daily Dow Jones Internet Bear 3X WEBS 25460E356 25460G666Shares

Direxion Daily S&P Oil & Gas Exp. & Prod. BearDRIP 25460E174 25460G6582X Shares

As a result of these reverse splits, every twenty, twelve or ten shares of a Fund will be exchanged for one share as indicated in the table above. Accordingly, the total number of the issued and outstanding shares for a Fund will decrease by the approximate percentage indicated above. In addition, the per share net asset value ("NAV") and next day's opening market price will be approximately twenty-, twelve-, or ten-times higher for the Funds. Shares of the Funds will begin trading on the NYSE Arca, Inc. (the "NYSE Arca") on a split-adjusted basis on August 28, 2020.

A shareholder's investment value, will not be affected by the reverse split. The tables below illustrate the effect of a hypothetical one-for-twenty, one-for-twelve, or one-for-ten reverse split anticipated for the Funds, as applicable and described above:

1-for-20 Reverse Split

Period # of Shares Owned Hypothetical NAV Total Market Value

Pre-Split 200 $10 $2,000

Post-Split 10 $200 $2,000

1-for-12 Reverse Split

Period # of Shares Owned Hypothetical NAV Total Market Value

Pre-Split 120 $10 $1,200

Post-Split 10 $120 $1,200

1-for-10 Reverse Split

Period # of Shares Owned Hypothetical NAV Total Market Value

Pre-Split 100 $10 $1,000

Post-Split 10 $100 $1,000

The Trust's transfer agent will notify the Depository Trust Company ("DTC") of the reverse split and instruct DTC to adjust each shareholder's investment(s) accordingly. DTC is the registered owner of the Funds' shares and maintains a record of the Funds' record owners.

Redemption of Fractional Shares and Tax Consequences for the Reverse SplitAs a result of the reverse split, a shareholder of a Fund's shares potentially could hold a fractional share. However, fractional shares cannot trade on the NYSE Arca. Thus, a Fund will redeem for cash a shareholder's fractional shares at the Fund's split-adjusted NAV as of the Record Date. A shareholder could recognize a gain or loss in connection with the redemption of the shareholder's fractional shares.

"Odd Lot" UnitAlso as a result of the reverse split, a Fund may have outstanding one aggregation of less than 50,000 shares to make a creation unit, or an "odd lot unit." Thus, a Fund will provide one authorized participant with a one-time opportunity to redeem the odd lot unit after the split-adjusted NAV is struck on August 28, 2020.

About Direxion:

Direxion equips investors who are driven by conviction with ETF solutions built for purpose and fine-tuned for precision. These solutions are available for a broad spectrum of investors, whether executing short-term tactical trades, investing in macro themes, or building long-term asset allocation strategies. Direxion's reputation is founded on developing products that precisely express market perspectives and allow investors to manage their risk exposure. Founded in 1997, the company has approximately $17 billion in assets under management as of June 30, 2020. For more information, please visit www.direxion.com.

There is no guarantee that the Funds will achieve their investment objectives.

For more information on all Direxion Shares daily leveraged ETFs, go to direxion.com, or call us at 866.301.9214.

Leveraged ETFs are not suitable for all investors and should be utilized only by investors who understand the risks associated with seeking daily leveraged and inverse investment results, and intend to actively monitor and manage their investments. Due to the daily nature of the leveraged and inverse investment strategies employed, there is no guarantee of long-term inverse returns. Past performance is not indicative of future results.

An investor should carefully consider a Fund's investment objective, risks, charges, and expenses before investing. A Fund's prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund's prospectus and summary prospectus call 866-716-0735 or visit our website at direxion.com. A Fund's prospectus and summary prospectus should be read carefully before investing.

Direxion Shares Risks -An investment in the ETFs involves risk, including the possible loss of principal. The ETFs are non-diversified and include risks associated with concentration that results from an ETF's investments in a particular industry or sector which can increase volatility. The use of derivatives such as futures contracts and swaps are subject to market risks that may cause their price to fluctuate over time. The ETFs do not attempt to, and should not be expected to, provide returns which are a multiple of the return of their respective index for periods other than a single day. For other risks including leverage, correlation, daily compounding, market volatility and risks specific to an industry or sector, please read the prospectus.

Distributor: Foreside Fund Services, LLC.

CONTACT: James Doyle

JConnelly

973.850.7308

jdoyle@jconnelly.com

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SOURCE Direxion