| Summary Prospectus |
November 19, 2025 |
| Direxion Shares ETF Trust |
|
Direxion Daily ORCL Bear 1X ETF
| Ticker: ORCS |
| Listed on: The Nasdaq Stock Market LLC |
Before you invest, you may
want to review the Fund’s prospectus, which contains more information about the Fund and its risks. You can find the Fund’s prospectus, reports to
shareholders, and other information about the Fund online at http://www.direxion.com/regulatory-documents. You can also get this information at no cost by
calling (866) 476-7523 or by sending an email request to info@direxionshares.com. The Fund’s prospectus and statement of additional information, both dated August 18, 2025, as supplemented, are incorporated by reference into this Summary Prospectus.
Important Information Regarding the
Fund
The Direxion Daily ORCL Bear 1X ETF
(“Fund”) seeks daily inverse investment results and is very different from most other exchange-traded funds. The pursuit of daily inverse investment goals means that
the return of the Fund for a period longer than a full trading day may have no resemblance to -100% of the return of the common shares of Oracle Corporation (NYSE:
ORCL) ("ORCL"). This means that the return of the Fund for a period longer than a trading day will be the result of each single day’s compounded return over the period,
which will very likely differ from -100% of the return of ORCL for that period. Longer holding periods and higher volatility of ORCL increase the impact of compounding on an investor’s
returns. During periods of higher volatility, the volatility of ORCL may affect the Fund’s return as much as, or more than, the return of ORCL. Further, the return for investors
that invest for periods longer or shorter than a trading day should not be expected to be
-100% of the performance of ORCL for the period.
The Fund is not suitable for all investors. The Fund is designed to be utilized only by knowledgeable investors who
understand the potential consequences of seeking daily inverse (-1X) investment results, understand the risks
associated with the use of shorting and are willing to monitor their portfolios frequently. The Fund is not intended to
be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. For periods longer than a single day, the Fund will lose
money if ORCL’s performance is flat, and it is possible that the Fund will lose money even if ORCL’s performance decreases over a period longer than a single day. An investor could lose the full principal value of his/her investment within a
single day.
Investment Objective
The Fund seeks daily investment results, before fees and expenses, of 100% of the
inverse (or opposite) of the daily performance of ORCL. The Fund does not seek to achieve its stated investment objective for a period of time different than a
trading day.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy, hold, and sell
shares of the Fund (“Shares”). You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected
in the table and example below.
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
| Management Fees |
0.75% |
| Distribution and/or Service (12b-1) Fees |
0.00% |
| Other Expenses of the Fund(1)
|
0.22% |
| Acquired Fund Fees and Expenses(1)
|
0.02% |
| Total Annual Fund Operating Expenses |
0.99% |
| Expense Cap/Reimbursement(2)
|
-0.02% |
| Total Annual Fund Operating Expenses After Expense Cap/Reimbursement |
0.97% |
(1)
Estimated for the Fund's current fiscal year.
(2)
Rafferty Asset Management, LLC (“Rafferty” or the “Adviser”) has entered into an Operating
Expense Limitation Agreement with the Fund. Under the Operating Expense Limitation Agreement, Rafferty has
contractually agreed to waive all or a portion of its management fee and/or reimburse the Fund for Other Expenses through September 1, 2026, to the extent that the
Fund’s Total Annual Fund Operating Expenses exceed 0.95% of the Fund’s average daily net assets
(excluding, as applicable, among other expenses, taxes, swap financing and related costs, acquired fund
fees and expenses, dividends or interest on short positions, other interest expenses, brokerage commissions
and extraordinary expenses).
Any expense waiver or reimbursement is subject to recoupment by the Adviser within the three years after the expense was waived/reimbursed only
if Total Annual Fund Operating Expenses fall below the lesser of this percentage limitation and any percentage limitation in place at the time the expense was waived/reimbursed. This agreement
may be terminated or revised at any time with the consent of the Board of Trustees.
Example - This example is intended to help you
compare the cost of investing in the Fund with the cost of investing in
other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that
your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs
would be:
| 1 Year |
3 Years |
| $99 |
$313 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account.
These costs, which are not reflected
Summary Prospectus
1
Direxion Daily ORCL Bear 1X ETF
in Annual Fund Operating
Expenses or in the example, affect the Fund’s performance.
Principal Investment Strategy
The Fund, under normal circumstances, invests at least 80% of the Fund’s net
assets (plus borrowings for investment purposes) in financial instruments, including swap agreements and options, that, in combination, provide 1X daily inverse (opposite) or short exposure
to ORCL, consistent with the Fund’s investment objective.
Oracle Corporation engages in the provision of products
and services that address aspects of corporate information technology
environments, including applications and infrastructure technologies. The company was founded in 1977 and is headquartered in Austin, TX. ORCL is registered under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”). Information provided to or filed with the Securities and Exchange Commission by Oracle Corporation pursuant to the Exchange Act
can be located by reference to the Securities and Exchange Commission file number 001-35992 through the Securities and Exchange Commission’s website at www.sec.gov.
In addition, information regarding Oracle Corporation may be obtained from other sources including, but not limited to, press releases, newspaper articles and other publicly
disseminated documents. As of July 31, 2025, ORCL is assigned to the information technology sector and the software industry, with exposure to companies involved in artificial intelligence and
big data.
The Fund will enter into one or more
swap agreements with major global financial institutions whereby the Fund and
the global financial institution will agree to exchange the return earned
on an investment by the Fund in ORCL that is equal, on a daily basis, to -100% of the value of the Fund's net assets. The Adviser attempts to consistently apply leverage to obtain short ORCL
exposure for the Fund equal to -100% of the value of its net assets and expects to rebalance the Fund’s holdings daily to maintain such exposure. As a result of its investment
strategies, the Fund will be concentrated in the information technology sector and the software industry
(i.e., hold 25% or more of its total assets in investments that provide inverse exposure in the information technology sector and the software
industry).
The Fund will attempt to achieve its
investment objective without regard to overall market movement or the increase or decrease of the value of ORCL. At the close of the markets each trading day, the
Adviser rebalances the Fund’s portfolio so that its exposure to ORCL is consistent with the Fund’s investment objective. The impact of ORCL’s price movements during the day will
affect whether the Fund’s portfolio needs to be rebalanced. For example, if the price of ORCL has fallen on a given day, net assets of the Fund should rise, meaning that the Fund’s
exposure will need to be increased. Conversely, if the price of ORCL has risen on a given day, net assets of the Fund should fall, meaning the Fund’s exposure will need to be reduced. This
daily rebalancing typically results in high portfolio turnover. On a day-to-day basis, the Fund is expected to hold money market funds, deposit accounts with institutions with high quality
(investment grade) credit ratings, and/or short-term debt instruments that have terms-to-maturity of less than 397 days and exhibit high quality
(investment grade) credit profiles, including U.S. government securities and repurchase agreements.
The terms “daily,” “day,” and “trading
day,” refer to the period from the close of the markets on one trading day to the close of the markets on the next trading day. The Fund is
“non-diversified,” under the Investment Company Act of 1940, as amended. Additionally, the Fund’s investment objective is not a fundamental policy and may be changed by the Fund’s Board of Trustees without
shareholder approval.
The Fund
has derived all disclosures contained in this document regarding Oracle Corporation from the publicly available documents described above. Neither the Fund,
the Trust, the Adviser nor any affiliate has participated in the preparation of such documents. Neither the Fund, the
Trust, the Adviser nor any affiliate makes any representation that such publicly available documents or any other publicly available information regarding Oracle Corporation is
accurate or complete. Furthermore, the Fund cannot give any assurance that all events occurring prior to the date of the prospectus (including events that would affect the accuracy or completeness of the publicly available documents described above) that would affect the trading price of
ORCL have been publicly disclosed. Subsequent disclosure of any such events or the disclosure of, or failure to disclose, material future events concerning Oracle Corporation could affect the value of the Fund’s investments with respect to ORCL
and therefore the value of the Fund.
Because of daily rebalancing and the compounding of each day’s return over time, the return of the Fund for periods longer than a single day will be the result of each day’s returns compounded over the period, which will very likely differ from -100% of the return of the underlying security over the same period. The Fund will lose money if the
underlying security performance is flat over time, and as a result of daily rebalancing, the underlying security’s volatility and the effects of compounding, it is even possible that
the Fund will lose money over time while the underlying security’s performance decreases over a period longer than a
single day.
Principal Investment Risks
An investment in the Fund entails risk. The Fund may not achieve its inverse investment objective and there is a risk that you could lose all of your money invested in the Fund. The Fund is not a complete investment program. In addition, the Fund presents risks not
traditionally associated with other mutual funds and ETFs. It is important that investors closely review all of the risks listed below and understand them before making an investment in
the Fund. The realization of certain of the risks
described below may result in adverse market movements that may actually benefit the Fund due to its inverse investment objective.
Shorting or Inverse Risk – The Fund will lose money when the value of ORCL rises because of the Fund’s
inverse or short exposure – this result is the opposite from a traditional index fund. The Fund’s assets
will increase in value when ORCL’s daily return decreases. The Fund’s assets will decrease in value when ORCL’s daily return increases. Because historically most assets have
risen in value over the long term, short exposure or positions and therefore, the value
Summary Prospectus
2
Direxion Daily ORCL Bear 1X ETF
of the Fund is expected to
depreciate in value over time, notwithstanding any separate effects of compounding and the Fund’s daily repositioning of inverse exposure. Additionally, if the level of
ORCL approaches a 100% increase at any point in the day, an investor could lose their entire investment. Accordingly, short positions and exposure may be riskier and more
speculative than traditional investments. The costs of obtaining short exposure or maintaining short positions will lower the Fund’s returns.
To the extent that the Fund obtains short exposure from derivatives, the Fund may be exposed to heightened volatility, reduced correlation to
ORCL or limited liquidity related to the reference asset of the underlying short position, which will adversely impact the Fund’s ability to meet its investment objective or
adversely impact its performance. If the Fund were to experience this volatility or decreased liquidity, the Fund may be required to obtain short exposure through alternative investment strategies
that may have less correlation to ORCL, less liquidity or are more costly to
implement. If the reference asset underlying the short position is thinly
traded or has a limited market, there may be a lack of available securities or counterparties for the Fund to enter into a short position or obtain short exposure from a derivative instrument.
Effects of Compounding and Market Volatility Risk — The Fund’s performance for periods greater
than a trading day will be the result of each day's returns compounded over
the period, which is likely to differ from -100% of ORCL’s performance, before fees and expenses. Compounding has a significant impact on funds that are inverse and that rebalance daily. The impact of
compounding becomes more pronounced as volatility and holding periods increase and will impact each shareholder differently depending on the period of time an investment
in the Fund is held and the volatility of ORCL during the shareholder’s holding period.
Fund performance for periods greater than one single day can be estimated given any set of assumptions for the following factors: a) volatility;
b) performance; c) period of time; d) financing rates associated with inverse exposure; e) other Fund expenses; and f) dividends or interest paid with respect to securities of
ORCL. The chart below provides examples of how volatility and its return could affect the Fund’s performance. The chart shows estimated Fund returns for a number of
combinations of volatility and performance over a one-year period. Actual Fund returns are expected to vary from these estimates. Performance shown in the chart assumes that: (i) no
dividends were paid with respect to the securities; (ii) there were no Fund expenses; and (iii) borrowing/lending rates (to obtain inverse exposure) of 0%. If Fund expenses and/or
actual borrowing/lending rates were reflected, the estimated returns would be different than those shown. Particularly during periods of higher volatility, compounding will cause
results for periods longer than a trading day to vary from -100% of the performance of ORCL.
As shown in the chart below, the Fund would be expected to lose 6.04% if ORCL provided no return over a one year period during which ORCL
experienced annualized volatility of 25%. At higher ranges of volatility, there is a chance of a significant loss of value in the Fund, even if ORCL’s return
is flat. For instance, if ORCL’s annualized volatility is 100%, the Fund
would be expected to lose 63.23% of its value, even if the cumulative return for the year was 0%. Areas shaded red (or dark gray) represent those scenarios where the Fund can be expected to return less than -100% of the performance of ORCL and those
shaded green (or light gray) represent those scenarios where the Fund can be expected to return more than -100% of the performance of ORCL. The table below is not a
representation of the Fund’s actual returns, which may be significantly better or worse than the returns shown below as a result of any of the factors discussed above or in
“Daily Inverse Correlation Risk” below.
| One Year |
-100%
One
Year |
Volatility Rate | ||||
| Return |
Return |
10% |
25% |
50% |
75% |
100% |
| -60% |
60% |
148.55% |
134.42% |
95.28% |
43.98% |
-5.83% |
| -50% |
50% |
99.13% |
87.77% |
56.26% |
15.23% |
-24.77% |
| -40% |
40% |
66.08% |
56.57% |
30.21% |
-4.08% |
-37.57% |
| -30% |
30% |
42.43% |
34.25% |
11.56% |
-17.98% |
-46.76% |
| -20% |
20% |
24.67% |
17.47% |
-2.47% |
-28.38% |
-53.72% |
| -10% |
10% |
10.83% |
4.44% |
-13.28% |
-36.52% |
-58.79% |
| 0% |
0% |
-0.25% |
-6.04% |
-22.08% |
-42.90% |
-63.23% |
| 10% |
-10% |
-9.32% |
-14.64% |
-29.23% |
-48.27% |
-66.67% |
| 20% |
-20% |
-16.89% |
-21.75% |
-35.24% |
-52.72% |
-69.67% |
| 30% |
-30% |
-23.29% |
-27.84% |
-40.25% |
-56.41% |
-71.94% |
| 40% |
-40% |
-28.78% |
-33.01% |
-44.63% |
-59.81% |
-74.32% |
| 50% |
-50% |
-33.55% |
-37.52% |
-48.57% |
-62.60% |
-76.19% |
| 60% |
-60% |
-37.72% |
-41.51% |
-51.96% |
-65.19% |
-78.12% |
ORCL’s annualized historical volatility rate for the five year period ended
December 31, 2024 was 32.80%. ORCL’s highest volatility rate for any one calendar year during the five year period was 39.89% and volatility for a shorter period of time may have been
substantially higher. ORCL’s annualized performance for the five-year period ended December 31, 2024 was 27.67%. Historical volatility and performance are not indications
of what ORCL volatility and performance will be in the future.
For information regarding the effects of volatility
and performance on the long-term performance of the Fund, see “Additional Information Regarding Investment
Techniques and Policies” in the Fund’s statutory prospectus, and "Leverage - Special Note Regarding the Correlation
Risks of the Funds" in the Fund’s Statement of Additional Information under “Investment Policies and Techniques.”
Derivatives Risk — Derivatives are financial instruments
that derive value from the underlying reference asset or assets, such as
stocks, bonds, or funds (including ETFs), interest rates or indexes. Investing in derivatives may be considered aggressive and may expose the Fund to greater risks, and may result in larger losses or
smaller gains, than investing directly in the reference assets underlying those derivatives, which may prevent the Fund from achieving its investment objective.
The Fund’s investments in derivatives may pose risks in addition to, and greater
than, those associated with directly investing in securities or other investments, including risk related to the market, leverage, imperfect correlations with underlying investments or the
Fund’s other portfolio holdings, higher price volatility, lack of availability, counterparty, liquidity,
Summary Prospectus
3
Direxion Daily ORCL Bear 1X ETF
valuation and legal
restrictions. The performance of a derivative may not track the performance of its reference asset for various reasons, including due to fees and other costs associated with it.
Because derivatives often require only a limited initial investment, the use of
derivatives may expose the Fund to losses in excess of the amount initially invested. As a result, the value of an investment in the Fund may change quickly and without warning. If ORCL
has a dramatic intraday increase or decrease that causes a material change in the Fund’s performance and/or net assets, the terms of a swap agreement between the Fund and its
counterparty may permit the counterparty to immediately close the swap agreement with the Fund. In that event, the Fund may not be able to enter into another swap agreement
or invest in other derivatives to achieve its investment objective. This may occur even if ORCL reverses all or a portion of its intraday movement by the end of the day.
Upon entering into certain derivatives contracts, such as swap agreements, and to
maintain open positions in such agreements, the Fund may be required to post collateral, the amount of which may vary. As such, the Fund may maintain cash balances, which may be
significant, with service providers such as the Fund’s custodian or its affiliates in segregated accounts. Maintaining larger cash and cash equivalent positions may also
subject the Fund to additional risks, such as increased credit risk with respect to the custodian bank holding the assets.
Counterparty Risk — If a counterparty is unwilling or unable
to make timely payments to meet its contractual obligations or fails to
return holdings that are subject to the agreement with the counterparty, the Fund will lose money and/or not be able to meet its daily inverse investment objective.
Because the Fund may enter into swap agreements with a limited number of counterparties, this increases the Fund’s exposure to
counterparty credit risk. Further, there is a risk that no suitable counterparties will be willing to enter into, or continue to enter into, transactions with the Fund and, as a result, the Fund may not
be able to achieve its inverse investment objective or rebalance properly, which may result in significant losses to the Fund, or the Fund may decide to change its inverse
investment objective. The risk that no suitable counterparties will enter into or continue to provide swap exposure to the Fund may be heightened when there is significant volatility
in the overall market or the reference asset.
Rebalancing Risk — If for any reason the Fund is unable
to rebalance all or a part of its portfolio, or if all or a portion of the
portfolio is rebalanced incorrectly, the Fund’s investment exposure may not be consistent with its investment objective which may lead to greater losses or reduced gains. In these instances, the
Fund may have investment exposure to ORCL that is significantly greater or significantly less than its stated investment objective. Additionally, the Fund may close to purchases and sales
of Shares prior to the close of trading on the Nasdaq or other national securities listing exchanges where Shares are listed and incur significant losses.
Cash Transaction Risk— Unlike most ETFs, the Fund currently
intends to effect creations and redemptions principally for cash, rather
than principally for in-kind securities, because of the nature of the financial instruments held by the Fund. As a result, the Fund is not expected to be tax efficient and will incur brokerage and
financing costs related to buying and selling securities and/or obtaining short derivative exposure to achieve its investment objective thus incurring additional expenses than
other funds that primarily effect creations and redemptions in kind. To the extent that such costs are not offset by transaction fees paid by an authorized participant, the Fund may
bear such costs, which will decrease the Fund’s net asset value.
Intra-Day Investment Risk— The intra-day performance of Fund shares traded in the secondary market will be different from the performance of
the Fund when measured from the close of the market on a given trading day until the close of the market on the subsequent trading day. An investor that purchases shares
intra-day may experience performance that is greater than, or less than, the Fund’s stated investment objective.
If there is a significant intra-day market event and/or the securities experience a significant change in value, the Fund may not meet its
investment objective, be unable to rebalance its portfolio appropriately, or may experience significant premiums or discounts, or widened bid-ask spreads.
Daily Inverse Correlation
Risk - There is no guarantee that the Fund will achieve a high degree of inverse
correlation to ORCL and therefore achieve its daily inverse investment
objective. The Fund’s exposure to ORCL is impacted by ORCL’s
movement. Because of this, it is unlikely that the Fund will be perfectly
exposed to ORCL at the end of each day. The possibility of the Fund being materially over- or under-exposed to ORCL increases on days when ORCL is volatile near the close of the trading day.
Market disruptions, regulatory restrictions and high volatility will also adversely affect the Fund’s ability to adjust exposure to the required levels.
The Fund may have difficulty achieving its daily inverse investment objective for many reasons, including fees, expenses, transaction costs,
financing costs related to the use of derivatives, accounting standards and their application to income items, disruptions, illiquid or high volatility in the markets for the
securities or financial instruments in which the Fund invests, early and unanticipated closings of the markets on which the holdings of the Fund trade, resulting in the inability of
the Fund to execute intended portfolio transactions, regulatory and tax considerations, which may cause the Fund to hold (or not to hold) ORCL. The Fund may take or refrain
from taking positions in order to improve tax efficiency, comply with regulatory restrictions, or for other reasons, each of which may negatively affect the Fund’s desired inverse correlation
with ORCL.
The derivative instruments or other investments the Fund utilizes to obtain exposure may
not provide the expected correlation to the ORCL, resulting in the Fund not performing as expected. The Fund may be subject to large movements of assets into and out of the
Fund, potentially resulting in the Fund being over- or under-exposed to ORCL. Any of these factors could decrease the inverse correlation between
Summary Prospectus
4
Direxion Daily ORCL Bear 1X ETF
the performance of the Fund
and ORCL and may hinder the Fund’s ability to meet its daily inverse investment objective on or around that day.
Market Risk — The Fund’s investments are subject
to changes in general economic conditions, general market fluctuations and
the risks inherent in investment in securities markets. Investment markets can be volatile and prices of investments can change substantially due to various factors including, but not limited to, economic
growth or recession, changes in interest rates, changes in the actual or perceived creditworthiness of issuers, general market liquidity, exchange trading suspensions and
closures, geopolitical events, tariffs, trade wars, natural disasters, and public health risks. Interest rates and inflation rates may change frequently and drastically due to various factors
and the Fund’s investments may be adversely impacted.
The economic, fiscal, monetary and foreign policies of the U.S. government, including the imposition of tariffs, changes to its federal agencies
and changes to regulatory policies, will impact the U.S. economy and could lead to increased market volatility and may adversely impact the overall market and individual securities,
including the various counterparties utilized by the Fund.
Oracle Corporation Investing
Risk— Issuer-specific attributes may cause an investment held by the Fund to be more volatile than the market generally.
The value of an individual security or particular type of security may be more volatile than the market as a whole and may perform differently from the value of the market as a whole.
As of the date of this prospectus, ORCL faces the risks of difficulties developing and selling new products; artificial intelligence may not operate as expected; inability
to execute strategies, especially those related to the cloud structure; inability to secure data center capacity; products and services may not function properly; intense competition;
failing to offer high-quality technical support; complexity of systems; workforce restructuring can be disruptive; attracting and retaining key personnel; as well as
risks related to intellectual property, litigation, taxes, insurance, data security, cybersecurity and accounting issues.
Non-Affiliation Risk — Oracle Corporation is not affiliated
with the Trust, the Adviser or any affiliates thereof and is not involved
with this offering in any way, and has no obligation to consider the Fund in taking any corporate actions that might affect the value of the Fund. The Trust, the Fund and any affiliate
are not responsible for the performance of ORCL and make no representation as to the performance of ORCL. Investing in the Fund is not equivalent to investing in ORCL.
Fund shareholders will not have voting rights or rights to receive dividends or other
distributions or any other rights with respect to ORCL.
Security Volatility Risk — The performance of the Fund is designed to correlate to the inverse performance of ORCL. Significant short-term
price movements in ORCL could adversely impact the performance of both ORCL and the Fund, increase the Fund’s bid-ask spread and adversely impact the Fund’s
ability to achieve its investment objective. In addition, the net asset value of the Fund over short-term
periods may be more
volatile than other investment options due to the volatility of ORCL.
Concentration Risk — The Fund will be concentrated in
a particular security, ORCL, and therefore, a particular industry and will
have more than 25% of its total assets in investments that provide inverse exposure to the information technology sector and the software industry (the risks of which are described below), the same
industry and/or sector to which ORCL is assigned. Since the Fund is concentrated in a particular security and therefore industry and/or sector, it presents more risks than a portfolio
broadly diversified over several industries. A portfolio invested in multiple securities and industries typically presents less risk than a portfolio concentrated in one security or
industry because market changes that adversely impact one security or industry may benefit others. Because the Fund only invests in one security and industry, it should be
expected to increase from any market movements that adversely impact ORCL and/or
information technology sector and the software industry.
Information Technology Sector Risk — The value of stocks of information technology companies and companies that rely heavily on technology is
particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation, and competition, both domestically and
internationally, including competition from competitors with lower production costs. In addition, many information technology companies have limited product lines, markets, financial
resources or personnel. The prices of information technology companies and companies that rely heavily on technology, especially those of smaller, less-seasoned companies, tend
to be more volatile and less liquid than the overall market. Information technology companies are heavily dependent on patent and intellectual property rights, the loss or
impairment of which may adversely affect profitability. Additionally, companies in the information technology sector may face dramatic and often unpredictable changes in growth rates and
competition for the services of qualified personnel. Companies in the application software industry, in particular, may also be negatively affected by the risk that subscription
renewal rates for their products and services decline or fluctuate, leading to declining revenues. Companies in the systems software industry may be adversely affected by, among other
things, actual or perceived security vulnerabilities in their products and services, which may result in individual or class action lawsuits, state or federal enforcement actions and other
remediation costs. Companies in the computer software industry may also be affected by the availability and price of computer software technology components.
Software Industry Risk — Companies that develop and implement computer software can face risks associated with intense competition,
especially in new product development, deployment and delivery, product obsolescence or saturation, cybersecurity risks as well as changes in regulation especially with respect to consumer
or customer data, and risks associated with technology.
Artificial Intelligence (AI) and Big Data Company Risk —
Companies engaged in artificial intelligence (“AI”) and big data typically face intense competition and potentially rapid
Summary Prospectus
5
Direxion Daily ORCL Bear 1X ETF
product obsolescence. These
companies are also heavily dependent on intellectual property rights and may be adversely affected by loss or impairment of those rights. There can be no assurance
these companies will be able to successfully protect their intellectual property to prevent the misappropriation of their technology, or that competitors will not develop
technology that is substantially similar or superior to such companies’ technology. AI and big data companies typically engage in significant amounts of spending on research and
development, as well as mergers and acquisitions, and there is no guarantee that the products or services produced by these companies will be successful. The products and services of
AI and big data companies may face obsolescence due to rapid technological
developments and frequent new product or service introduction,
unpredictable changes in growth rates and competition for the services of qualified personnel. AI and big data companies are potential targets for cyberattacks, which can have a materially
adverse impact on the performance of these companies. In addition, AI technology could face increasing regulatory scrutiny in the future, which may limit the development
of this technology and impede the growth of companies that develop and/or utilize this technology. Similarly, the collection of data from consumers and other sources could
face increased scrutiny as regulators consider how the data is collected, stored, safeguarded and used. AI and big data companies may face regulatory fines and penalties, including
forced break-ups, that could hinder the ability of the companies to operate on an ongoing basis. The customers and/or suppliers of AI and big data companies may be concentrated in a
particular country, region or industry. Any adverse event affecting one of these countries, regions or industries could have a negative impact on AI and big data companies.
Country, government, and/or region-specific regulations or restrictions could have an impact
on AI and big data companies.
Large-Capitalization Company Risk — Large-capitalization companies typically have significant financial resources, extensive product lines and
broad markets for their goods and/or services. However, they may be less able to adapt to changing market conditions or to respond quickly to competitive challenges or to
changes in business, product, financial, or market conditions and may not be able to maintain growth at rates that may be achieved by well-managed smaller and mid-size
companies, which may affect the companies’ returns.
Money Market Instrument Risk
— The Fund may use a
variety of money market instruments for cash management purposes, including
money market funds, depositary accounts and repurchase agreements. Money market funds may be subject to credit risk with respect to the debt instruments in which they invest.
Depository accounts may be subject to credit risk with respect to the financial institution in which the depository account is held. Money market instruments may lose money.
Liquidity Risk — Holdings of the Fund may be difficult
to buy or sell or may be illiquid, particularly during times of market
turmoil. There is no assurance that a security or derivative instrument that is deemed liquid when purchased
will continue to be liquid.
Illiquid securities may be difficult to value, especially in changing or volatile markets. If the Fund is forced to buy or sell an illiquid security or derivative instrument at an
unfavorable time or price, the Fund may be adversely impacted. Certain market conditions or restrictions may prevent the Fund from limiting losses, realizing gains or achieving its
investment objective. In certain market conditions the Fund may be one of many market participants that is attempting to transact in the underlying security. Under such
circumstances, the market for the underlying security may lack sufficient liquidity for all market participants' trades. Therefore, the Fund may have more difficulty transacting in the
securities or financial instruments and the Fund's transactions could exacerbate illiquidity and price volatility.
To the extent that the instruments utilized by the Fund are thinly traded or have a limited market, the Fund may be unable to meet its investment
objective due to a lack of available investments or counterparties. During such periods, the Fund’s ability to issue additional Creation Units may be adversely affected.
As a result, the Fund’s shares could trade at a premium or discount to their net asset value and/or the bid-ask spread of the Fund’s shares could widen. Under such circumstances, the
Fund may be unable to rebalance its exposure properly which may result in significantly more or less exposure and losses to the Fund. In such an instance, the Fund may increase its
transaction fee, change its investment objective, reduce its exposure or close.
Early Close/Trading Halt Risk — An exchange or market may close or issue trading halts on specific securities or financial instruments. Under
such circumstances, the Fund may be unable to buy or sell certain portfolio securities or financial instruments, may be unable to rebalance its portfolio, may be unable to accurately price
its investments, and may disrupt the Fund’s creation/redemption process which means the Fund may be unable to achieve its investment objective and it may incur substantial losses.
Equity Securities Risk — Publicly issued equity securities, including common stocks, are subject to market risks that may cause their prices to
fluctuate over time. Fluctuations in the value of equity securities in which the Fund invests, and/or has exposure to, will cause the net asset value of the Fund to fluctuate.
Tax Risk — In order to qualify for the special
tax treatment accorded a regulated investment company (“RIC”) and its shareholders, the Fund must derive at least 90% of its gross income for each taxable
year from “qualifying income,” meet certain asset diversification tests at the end of each taxable quarter, and meet annual distribution requirements. The Fund’s pursuit of
its investment strategy will potentially be limited by the Fund’s intention to qualify for such treatment and could adversely affect the Fund’s ability to so qualify. The Fund may make
certain investments, the treatment of which for these purposes is unclear. If, in any year, the Fund were to fail to qualify for the special tax treatment accorded a RIC and its
shareholders, and were ineligible to or were not able to cure such failure, the Fund would be taxed in the same manner as an ordinary corporation subject to U.S. federal income tax on all its
income at the fund level. The
Summary Prospectus
6
Direxion Daily ORCL Bear 1X ETF
resulting taxes could
substantially reduce the Fund’s net assets and the amount of income available for distribution. In addition, in order to requalify for taxation as a RIC, the Fund could be required to
recognize unrealized gains, pay substantial taxes and interest, and make certain distributions. Please see the section entitled “Dividends, Other Distributions and Taxes”
in the Statement of Additional Information for more information.
Non-Diversification Risk — The Fund has the ability to invest a relatively high percentage of its assets in the securities of a small number of
issuers or in financial instruments with a single counterparty or a few counterparties. This may increase the Fund’s volatility and increase the risk that the Fund’s
performance will decline based on the performance of a single issuer, the credit of a single counterparty, and/or a single economic, political or regulatory event.
Special Risks of Exchange-Traded Funds
Authorized Participants Concentration Risk. The Fund may have a limited number of financial institutions that may act as Authorized Participants. To the extent that those Authorized Participants exit
the business or are unable to process creation and/or redemption orders, Shares may trade at larger bid-ask spreads and/or premiums or discounts to net asset value. Authorized
Participant concentration risk may be heightened for a fund that invests in non-U.S. securities or other securities or instruments that have lower trading volumes.
Absence of Active Market
Risk. Although Shares are listed for trading on a stock exchange, there is no assurance
that an active trading market for them will develop or be maintained. In
the absence of an active trading market for Shares, they will likely trade with a wider bid/ask spread and at a greater premium or discount to net asset value.
Market Price Variance Risk. Fund Shares can be bought and sold in the secondary market at market prices, which may be higher or lower than the net
asset value of the Fund. When Shares trade at a price greater than net asset value, they are said to trade at a “premium.” When they trade at a price less than
net asset value, they are said to trade at a “discount.” The market price of Shares fluctuates based on changes in the value of the Fund’s holdings, the supply and demand for Shares
and other market factors. The market price of Shares may vary significantly from the Fund’s net asset value especially during times of market volatility or stress. Further, to the
extent that exchange specialists, market makers, Authorized Participants, or other market participants are unavailable or unable to trade the Fund’s Shares and/or create or redeem
Creation Units premiums or discounts may increase.
Trading Cost Risk. When buying or selling Shares in the secondary market, a buyer may incur brokerage commission or other charges. In addition, a buyer may incur the cost of the “spread”
also known as the bid-ask spread, which is the difference between what investors are willing to pay for Fund shares (the “bid” price) and the price at which they are willing to
sell Fund shares (the “ask” price). The bid-ask spread varies over time based on, among other things, trading volume, market liquidity and market volatility.
Because of the costs inherent in buying or selling Fund shares, frequent trading may detract significantly from investment results.
Exchange Trading Risk. Shares are listed for trading on the Nasdaq. They also may be listed or traded on other U.S. and non-U.S. stock exchanges and may trade on electronic communication networks. Trading
in Shares on their listing exchange may be halted due to market conditions or for reasons that, in the view of the exchange, make trading in Shares inadvisable, including
if they fail to meet the listing requirements of the exchange. Under certain circumstances, Shares may even be delisted. Trading halts of Shares should be expected to disrupt the
Fund’s creation/redemption process and may temporarily prevent investors from buying and selling Shares. Like other listed securities, Shares of the Fund may be sold short, and
short positions in Shares may place downward pressure on their market price.
Fund Performance
No prior investment performance is provided for the Fund because it had not commenced operations prior to the date of this Prospectus. Upon commencement of operations, updated performance will be available on the Fund’s website
at www.direxion.com/etfs?producttab=performance or by calling the Fund toll-free at (866)
476-7523.
Management
Investment Adviser. Rafferty Asset Management, LLC is the Fund’s investment adviser.
Portfolio Managers. The following members of Rafferty’s investment team are jointly and primarily responsible for the day-to-day management of the Fund:
| Portfolio Managers |
Years of Service
with the Fund |
Primary Title |
| Paul Brigandi |
Since Inception |
Portfolio Manager |
| Tony Ng |
Since Inception |
Portfolio Manager |
Purchase and Sale of Fund Shares
The Fund’s individual shares may only be purchased or sold in the secondary market
through a broker-dealer or other financial intermediaries at market price rather than at net asset value. The market price of Shares will fluctuate in response to changes in the
value of the Fund’s holdings and supply and demand for the Shares, which may result in shareholders purchasing or selling the Shares on the secondary market at a market
price that is greater than net asset value (a premium) or less than net asset value (a discount). Additionally, a shareholder may incur costs attributable to the difference
between the highest price a buyer is willing to pay for the Fund’s Shares (bid) and the lowest price a seller is willing to accept for the Fund’s Shares (ask) when buying
or selling Shares on the secondary market (the “bid-ask spread”) in addition to brokerage commissions. The bid-ask spread may vary over time for Shares based on trading volume and market
liquidity. Recent information regarding the Fund Shares such as net asset value, market price, premiums and discounts, bid-ask spreads, and related other information is
available on the Fund’s website, www.direxion.com/etfs?producttab=performance.
Summary Prospectus
7
Direxion Daily ORCL Bear 1X ETF
The Fund’s shares are
not individually redeemable by submitting Shares to the Fund. The Fund will issue and redeem Shares for cash only to Authorized Participants in large blocks, known as creation
units, each of which is comprised of 25,000 Shares.
Tax Information
The Fund intends to make distributions that may be taxed as ordinary income or long-term
capital gains. Those distributions will be subject to federal income tax and may also be subject to state and local taxes, unless you are investing through a
tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. Distributions or investments made through tax-deferred arrangements may be taxed later upon withdrawal.
Distributions by the Fund may be significantly higher than those of most other ETFs.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank or financial adviser), the Fund and/or
its Adviser may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other
financial intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more
information.
Summary Prospectus
8
Direxion Daily ORCL Bear 1X ETF
SEC File Number: 811-22201