Rafferty Asset Management Closing Three Leveraged ETFs

The Direxion Shares ETF Trust has decided to liquidate and close the Direxion Daily 7-10 Year Treasury Bull 2X Shares (Ticker: SYTL), Direxion Daily Mid Cap Bull 2X Shares (Ticker: MDLL) and Direxion Daily Basic Materials Bull 3X Shares (Ticker: MATL) exchange-traded funds (“the Funds”) based on the recommendation of Rafferty Asset Management, LLC (“Rafferty”), the Funds’ Sponsor.

Due to the Funds’ inability to attract sufficient investment assets, Rafferty believes the Funds cannot continue to conduct their business and operations in an economically efficient manner. As a result, Rafferty concluded that liquidating and closing the Funds would be in the best interests of the Funds and their shareholders.

Shares of the Funds will stop trading on the NYSE Arca, Inc., and will no longer be open to purchase by investors, after the close of regular trading on October 20, 2015. Shareholders may sell their holdings in the Funds prior to October 20, 2015, and those transactions may be subject to customary brokerage charges. Between October 21, 2015 and October 27, 2015, shareholders may only be able to sell their shares to certain broker-dealers and there is no assurance that there will be a market for the Funds during that time period.

On or about October 27, 2015, the Funds will liquidate their assets and distribute cash pro rata to shareholders who have not previously redeemed or exchanged their shares. These payments are taxable and will include any accrued capital gains and dividends. The Funds’ net asset values will reflect the costs of closing the Funds as calculated on the liquidation date. The Funds will close when the distributions are complete.

The process of closing down and liquidating the Funds’ portfolios, scheduled to take place between October 21, 2015 and October 27, 2015, will result in the Funds not tracking their underlying indexes and experiencing an increase in cash holdings. These developments may not be consistent with the Funds’ investment objectives and strategies.

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