Welcome!

News Feed Item

Direxion Changes Name Of S&P 500® Volatility Response ETF

Direxion S&P Volatility Response Shares Follows New Underlying S&P Index

NEW YORK, Aug. 6, 2014 /PRNewswire/ -- Direxion Investments, an ally for strategic and tactical investors who seek better investment outcomes, has changed the name of the Direxion S&P 500® DRRC Index Volatility Response Shares, to the Direxion S&P 500® Volatility Response Shares. The name change reflects the underlying index change to the S&P 500® Volatility Response Index.

Direxion Investments Logo

The Direxion S&P 500® Volatility Response Shares ETF (NYSE: VSPY) began following its new index on August 1, 2014.  "VSPY is a strategic way for investors to seek a smoother ride for their S&P 500 core holdings," said Brian Jacobs, President of Direxion Investments. "Periods of high volatility often coincide with adverse equity markets, while periods of low volatility tend to represent a greater likelihood of favorable market conditions. By tracking the S&P 500® Volatility Response Index, which uses volatility to dictate overall equity exposure, VSPY allows investors to gain exposure to large- and mid-cap stocks, with a strategic way to manage risk. We're pleased with the fund's performance since inception, and we anticipate that this index change will allow for continued risk management for investors." 

The S&P 500® Volatility Response Index, designed to respond to volatility, is composed of S&P 500 equity securities and U.S. Treasury Bills. The Index responds to volatility by establishing a volatility target which may be set at 12.5%, 15%, or 17.5%, and is determined based on the recent levels of CBOE Volatility Index (VIX®). The Index then reviews several volatility factors of the S&P 500 Index. The volatility factors of the S&P 500 Index are exponentially weighted with more emphasis placed on the most recent historical periods. Those volatility factors, along with the target volatility levels, determine the Index's exposure to the equity component and the Treasury Bill component. The percentage exposure to the equity component is expected to range between 10% and 100%, and will not exceed 100%. Exposure to the Treasury Bills component is expected to range between 0% and 90%.

The following tables provide example exposure levels to the Stock Component that the Fund would have at target volatility levels of 12.5%, 15% and 17.5% based on hypothetical volatility calculations. As reflected in the tables below, the Fund can generally be expected to have greater exposure to the Stock Component at lower levels of S&P 500® Index volatility, and the Index's target volatility can further increase or decrease this exposure.

Target Volatility

S&P 500® 
Index
Volatility

Exposure to
the Stock
Component* 

Exposure to
the Cash
Component 


10%

100%

0%


15%

69%

31%

12.5%

25%

25%

75%


50%

10%

90%


75%

10%

90%


100%

10%

90%





Target Volatility

S&P 500® 
Index
Volatility

Exposure to
the Stock
Component* 

Exposure to
the Cash
Component 


10%

100%

0%


15%

100%

0%

15%

25%

36%

64%


50%

10%

90%


75%

10%

90%


100%

10%

90%





Target Volatility

S&P 500® 
Index
Volatility

Exposure to
the Stock
Component* 

Exposure to
the Cash
Component 


10%

100%

0%


15%

100%

0%

17.5%

25%

49%

51%


50%

12%

88%


75%

10%

90%


100%

10%

90%

The charts above are hypothetical and not representative of Fund holdings.  There is no guarantee the fund will meet the stated objective.

For more information about Direxion, please contact James Doyle at 973-850-7308 or [email protected].

About Direxion Investments:

Direxion Investments managed by Rafferty Asset Management, LLC, offers highly liquid, tactical and strategic institutional-style ETFs and Mutual Funds for investors seeking to solve for better investment outcomes. The firm provides a wide range of index-based products that offer directional options, magnified exposure and long-term, rules-based strategies. Founded in 1997, the company has approximately $8.4 billion in assets under management as of June 30, 2014. Our diverse suite of products helps traders and investors stay nimble in the short term—and pursue strategies for the long term—as they navigate today's ever-changing markets. For more information, please visit www.direxioninvestments.com.

* Rafferty has contractually agreed to waive all or a portion of its fees and/or reimburse the fund for expenses through September 1, 2015, to the extent that the funds net annual operating expenses exceed 0.45% (excluding, as applicable, among other expenses, taxes, leverage interest, acquired fund fees and expenses, dividends or interest on short positions, other interest expenses, brokerage commissions, expenses incurred in connection with any merger or reorganization and extraordinary expenses such as litigation).

There is no guarantee that the funds will achieve their objectives.

For more information on all Direxion ETFs, go to direxioninvestments.com, or call us at 866.476.7523.

An investor should consider the investment objectives, risks, charges, and expenses of Direxion ETFs carefully before investing. The prospectus and summary prospectus contains this and other information about Direxion ETFs. Download a prospectus and summary prospectus at www.direxioninvestments.com. The prospectus and summary prospectus should be read carefully before  investing.

Risks:
Investing in the funds may be more volatile than investing in broadly diversified funds. There is no assurance that the Funds will achieve their objectives and an investment in a Fund could lose money. No single Fund is a complete investment program. One cannot invest directly in an index. An investment in the Fund involves risk, including the possible loss of principal. 

Distributor: Foreside Fund Services, LLC.

Logo - http://photos.prnewswire.com/prnh/20140806/134231  

SOURCE Direxion Investments

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
Cloud Expo, Inc. has announced today that Aruna Ravichandran, vice president of DevOps Product and Solutions Marketing at CA Technologies, has been named co-conference chair of DevOps at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Translating agile methodology into real-world best practices within the modern software factory has driven widespread DevOps adoption, yet much work remains to expand workflows and tooling across the enterprise. As models evolve from pockets of experimentation into wholescale organizational reinvention, practitioners find themselves challenged to incorporate the culture and architecture necessary to support DevOps at scale. In his session at @DevOpsSummit at 20th Cloud Expo, Anand Akela, Senior...
Join IBM November 2 at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how to go beyond multi-speed it to bring agility to traditional enterprise applications. Technology innovation is the driving force behind modern business and enterprises must respond by increasing the speed and efficiency of software delivery. The challenge is that existing enterprise applications are expensive to develop and difficult to modernize. This often results in what Gartner calls ...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the USA and Europe, we work with a variety of customers from emerging startups to Fortune 1000 companies.
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...