Direxion ETF Loss

If you have suffered losses in Direxion ETFs, please call 1-866-817-0201 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.

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