Direxion Daily Semiconductor Bull 3X Shares

Direxion Daily Semiconductor Bull 3X Shares is a leveraged exchange-traded fund designed to provide three times the daily performance of the NYSE Semiconductor Index. The fund offers targeted exposure to a concentrated basket of large US-listed semiconductor companies, including chip manufacturers as well as providers of semiconductor equipment and related services. It uses financial derivatives such as swap agreements, along with securities of index constituents and related ETFs, to achieve its leverage and maintain close alignment with the benchmark. The portfolio is market-cap-weighted, with caps on individual holdings and on the aggregate weight of depositary receipts, which helps manage concentration risk while preserving exposure to leading industry names. Direxion Daily Semiconductor Bull 3X Shares is structured as an open-ended, passively managed fund, rebalancing its leverage on a daily basis to maintain its targeted three-times multiple of the index’s one-day return. The ETF is issued and advised by Rafferty Asset Management LLC under the Direxion brand and distributes income from its holdings to shareholders.