Direxion to close LLDM, LLEM, VSPY

The Board of Trustees of the Direxion Shares ETF Trust has decided to liquidate and close the:

Direxion Daily FTSE Developed Markets Bull 1.25X Shares (Ticker: LLDM),

Direxion Daily FTSE Emerging Markets Bull 1.25X Shares (Ticker: LLEM) and the

Direxion S&P 500® Volatility Response Shares (Ticker: VSPY)

(each a “Fund” and collectively the “Funds”) based on the recommendation of Rafferty Asset Management, LLC, the Trust’s advisor. Due to the Funds’ inability to attract sufficient investment assets, Rafferty believes they cannot continue to conduct their business and operations in an economically efficient manner. As a result, the Board concluded that liquidating and closing the Funds would be in the best interest of each Fund and its shareholders.

Shares of each Fund will stop trading on the NYSE Arca, Inc., and will no longer be open to purchase by investors, at the close of regular trading on October 07, 2016 (Closing Date). Shareholders may sell their holdings in each Fund prior to October 07, 2016, and those transactions may be subject to customary brokerage charges. Between October 10, 2016 and October 14, 2016 (the “Liquidation Date”), shareholders may only be able to sell their shares to certain broker-dealers and there is no assurance there will be a market for each Fund’s shares during this time. Between the Closing Date and the Liquidation Date, each Fund will close down and liquidate its portfolio. This process will result in each Fund increasing its cash holdings and, as a consequence, not tracking its underlying index, which may not be consistent with each Fund’s investment objective and strategy.

On or about the Liquidation Date, the Funds will liquidate their assets and distribute cash pro rata to all remaining shareholders who have not previously redeemed or exchanged their shares. These distributions are taxable events. In addition, these payments to shareholders will include accrued capital gains and dividends, if any. As calculated on the Liquidation Date, each Fund’s net asset value will reflect the costs of closing the Fund. Once the distributions are complete, the Funds will terminate.

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