Direxion Daily Technology Bear 3X Shares

The fund seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the daily performance of the Index, by investing in companies in the United States.

The Index includes domestic companies from the technology sector which includes industries, such as information technology hardware, storage, and peripherals; software; communications equipment; semiconductors and semiconductor equipment; IT services; and electrical equipment, instruments and components.

The investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.

Next, the research team invests in swap agreements, futures contracts, short positions or other financial instruments that, in combination, provide inverse (opposite) or short leveraged exposure to the Index.

Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.

The fund will concentrate its investment in a particular industry or group of industries to approximately the same extent as the Index is so concentrated.

In addition, the fund may have inverse exposure to securities, ETFs or financial instruments not included in the Index.

The fund is non-diversified, meaning that a relatively high percentage of its net assets may be invested in a limited number of issuers of securities.