Direxion Announces Closure of Two ETFs Due to Insufficient Investment Assets

Direxion Shares ETF Trust has announced the liquidation and closure of two of its ETFs, the Direxion Daily Travel & Vacation Bull 2X Shares (OOTO) and the Direxion Daily Cloud Computing Bull 2X Shares (CLDL), effective July 24, 2025. This decision, recommended by the Funds' adviser, Rafferty Asset Management, LLC, and approved by the Board of Trustees, stems from the Funds' inability to attract sufficient investment assets. The Board concluded that this action is in the best interest of the Funds and their shareholders.

The Funds will cease trading on the NYSE Arca, Inc. and will be closed to new investments by the close of regular trading on the NYSE on the Closing Date. Shareholders looking to sell their holdings must do so before this date, with customary brokerage charges applicable. From July 24, 2025, through July 30, 2025, the Liquidation Date, the ability to sell shares may be limited to certain broker-dealers, with no guarantee of a market for the Funds' shares during this period.

During the liquidation process, each Fund will increase its cash holdings, deviating from its investment objective and strategy by not tracking its underlying index. On or about the Liquidation Date, each Fund will liquidate its assets, distributing cash pro rata to remaining shareholders. These distributions are taxable events and may include accrued capital gains and dividends. The net asset value on the Liquidation Date will reflect the costs of closing the Fund.

This development is significant for investors in the travel, vacation, and cloud computing sectors, as it removes two leveraged ETF options from the market. Investors in these Funds should consider the implications of the closure on their portfolios and explore alternative investment strategies to maintain their desired market exposure.