If you have suffered losses in Direxion ETFs, please call 303-300-5022 to discuss the potential for loss recovery.
After days of volatility, Direxion stated that it was closing the following funds “due to their inability to attract investor assets“:
|Direxion Daily Russia Bear 3X Shares||RUSS|
|Direxion Daily Natural Gas Related Bull 3X Shares||GASL|
|Direxion Daily Natural Gas Related Bear 3X Shares||GASX|
|Direxion Daily MSCI Developed Markets Bear 3X Share||DPK|
|Direxion Daily Mid Cap Bear 3X Shares||MIDZ|
|Direxion Daily Regional Banks Bear 3X Shares||WDRW|
|Direxion Daily MSCI European Financials Bull 2X Shares||EUFL|
|Direxion Daily Total Bond Market Bear 1X Shares||SAGG|
These investments are investments that should have only been sold to highly sophisticated investors looking to take great amounts of risk.
In 2009, FINRA, the regulator that oversees the actions of brokers, stated that leveraged and inverse ETF investments are toxic for average investors. These investments reset every day. As a result, the investments compound in their losses and the nature of them can change drastically over the course of a few days.
Daily re-leveraging combined with high volatility, such as the volatility seen in March 2020, creates compounding issues. When the underlying index of the ETF if volatile as opposed to being stable, either up or down, the re-leveraging of the ETF each day is mathematically destructive.