UPDATE: Direxion Reports Reverse, Forward Share Splits of 19 3x ETFs

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Direxion Investments has announced it will execute reverse share splits for eight of its leveraged exchange-traded funds ("ETFs"), as well as forward share splits for another 11 leveraged ETFs. 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. Direxion Investments Logo 8 Reverse Splits Direxion will execute a 1-for-10 reverse split of the shares of the Direxion Daily Brazil Bull 3X Shares, Direxion Daily FTSE China Bear 3X Shares, and Direxion Daily Natural Gas Related Bull 3X Shares, effective at the open of the market on May 20, 2015. The firm will also execute a 1-for-4 reverse split of the Direxion Daily Mid Cap Bear 3X Shares, Direxion Daily Latin America Bull 3X Shares, Direxion Daily Russia Bear 3X Shares, Direxion Daily Semiconductor Bear 3X Shares, and Direxion Daily Technology Bear 3X Shares, effective at the open of the market on May 20, 2015. A summary of the eight ETFs undergoing reverse splits is as follows (please note the CUSIP changes, effective May 20, 2015): Approximate ETF Current CUSIP New CUSIP Ratio decrease in total number of outstanding shares Direxion Daily Brazil Bull 3X 25459Y546 25490K844 1:10 90% Shares (BRZU) Direxion Daily FTSE China Bear 3X Shares 25459Y462 25490K836 1:10 90% (YANG) Direxion Daily Natural Gas Related Bull 3X Shares 25459W227 25490K828 1:10 90% (GASL) Direxion Daily Mid Cap Bear 25459Y421 25490K810 1:4 75% 3X Shares (MIDZ) Direxion Daily Latin America 25459Y652 25490K794 1:4 75% Bull 3X Shares (LBJ) Direxion Daily Russia Bear 3X 25459W284 25490K786 1:4 75% Shares (RUSS) Direxion Daily Semiconductor Bear 3X Shares 25459Y314 25490K778 1:4 75% (SOXS) Direxion Daily Technology 25459Y439 25490K760 1:4 75% Bear 3X Shares (TECS) As a result of this reverse split, every 10 or four 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 the Funds 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 10- or four-times higher for the Funds. Shares of the Funds will begin trading on NYSE Arca, Inc. ("NYSE Arca") on a split-adjusted basis on May 20, 2015 (the "Effective Date"). The next day's opening market value of the Funds' issued and outstanding shares, and thus a shareholder's investment value, will not be affected by the reverse split. The tables below illustrate the effect of a hypothetical 1-for-10 and 1-for-4 reverse split anticipated for the Funds, as applicable and described above: Hypothetical example of 1-for-10 Reverse Split Period # of Shares Owned Hypothetical NAV Total Market Value Pre-Split 120 $10 $1,200 Post-Split 12 $100 $1,200 Hypothetical example of 1-for-4 Reverse Split Period # of Shares Owned Hypothetical NAV Total Market Value Pre-Split 120 $10 $1,200 Post-Split 30 $40 $1,200 11 Forward Splits Additionally, Direxion will execute forward splits of the shares of the Direxion Daily Mid Cap Bull 3X Shares, Direxion Daily India Bull 3X Shares, Direxion Daily Healthcare Bull 3X Shares, Direxion Daily Retail Bull 3X Shares, Direxion Daily Semiconductor Bull 3X Shares, Direxion Daily Financial Bull 3X Shares, Direxion Daily Technology Bull 3X Shares, Direxion Daily S&P 500^® Bull 2X Shares, Direxion Daily Mid Cap Bull 2X Shares, Direxion Daily Small Cap Bull 2X Shares, and Direxion Daily 7-10 Year Treasury Bull 2X Shares. After the close of the markets on May 19, 2015 (the "Payable Date"), each Fund will affect a split of each Fund's issued and outstanding shares as follows: Approximate ETF Forward Split Ratio increase in total number of outstanding shares Direxion Daily Mid Cap Bull 3X Shares 4 for 1 400% (MIDU) Direxion Daily India Bull 3X Shares 4 for 1 400% (INDL) Direxion Daily Healthcare Bull 3X 4 for 1 400% Shares (CURE) Direxion Daily Retail Bull 3X Shares 4 for 1 400% (RETL) Direxion Daily Semiconductor Bull 3X 4 for 1 400% Shares (SOXL) Direxion Daily Financial Bull 3X Shares 4 for 1 400% (FAS) Direxion Daily Technology Bull 3X 4 for 1 400% Shares (TECL) Direxion Daily S&P 500^® Bull 2X Shares 4 for 1 400% (SPUU) Direxion Daily Mid Cap Bull 2X Shares 4 for 1 400% (MDLL) Direxion Daily Small Cap Bull 2X Shares 4 for 1 400% (SMLL) Direxion Daily 7-10 Year Treasury Bull 2X Shares 2 for 1 200% (SYTL) As a result of these share splits, shareholders of each Fund will receive an additional four or two shares for each share held of the applicable Fund as indicated in the table above. Accordingly, the number of each Fund's issued and outstanding shares will increase by approximately 400% or 200% as indicated above. All forward share splits will apply to shareholders of record as of the close of the NYSE Arca on May 18, 2015 (the "Record Date"), payable after the close of the NYSE Arca on May 19, 2015 (the "Payable Date"). Shares of the Funds will begin trading on the NYSE Arca on a split-adjusted basis on May 20, 2015 (the "Ex-Date"). On the Ex-Date, the opening market value of each Fund's issued and outstanding shares, and thus a shareholder's investment value, will not be affected by the share split. However, the per-share NAV and opening market price on the Ex-Date will be approximately one-fourth and one-half for the Funds. The tables below illustrate the effect of a hypothetical four-for-one and two-for-one share split on a shareholder's investment. Hypothetical Example of 4-for-1 Forward Share Split Period # of Shares Owned Hypothetical NAV Total Market Value Pre-Split 100 $40 $4,000 Post-Split 400 $10 $4,000 Hypothetical Example of 2-for-1 Forward Share Split Period # of Shares Owned Hypothetical NAV Total Market Value Pre-Split 100 $40 $4,000 Post-Split 200 $20 $4,000 The Trust's transfer agent will notify the Depository Trust Company ("DTC") of the reverse and forward splits and instruct the 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 Each Reverse and Forward Split As a result of the reverse or forward split, a shareholder of a Fund's shares could potentially 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. Such redemption may have tax implications for those shareholders and a shareholder could recognize a gain or loss in connection with the redemption of the shareholder's fractional shares. Otherwise, the reverse or forward split will not result in a taxable transaction for holders of Fund shares. No transaction fee will be imposed on shareholders for such redemption.
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