Direxion Announces Name Change for QQQU and QQQD ETFs

Direxion, a leading provider of tradeable and thematic exchange-traded funds (ETFs), has announced that it will change the names of its QQQU and QQQD ETFs. Effective August 16, 2024, the funds will be known as the Direxion Daily Magnificent 7 Bull 2X Shares (Ticker: QQQU) and the Direxion Daily Magnificent 7 Bear 1X Shares (Ticker: QQQD). This rebranding aims to better reflect the funds' focus and the opportunities they provide to traders.

Alongside the name change, these ETFs will seek to achieve 200%, or 100% of the inverse, of the daily performance of the Indxx Magnificent 7 Index. This index tracks the performance of the seven largest companies listed on the Nasdaq 100, which include Alphabet Inc. (GOOGL), Amazon.com, Inc. (AMZN), Apple Inc. (AAPL), Meta Platforms, Inc. (META), Microsoft Corporation (MSFT), Nvidia Corporation (NVDA), and Tesla, Inc. (TSLA).

Edward Egilinsky, Managing Director and Head of Sales and Alternatives at Direxion, highlighted the strategic importance of this move. “QQQU and QQQD capitalize on key market drivers, including artificial intelligence, cloud computing, and semiconductors. The new fund names better align with the opportunities traders have expressed with their short-term convictions on the Magnificent 7.”

It is important to note that all Direxion leveraged and inverse ETFs are designed for investors who have a deep understanding of the risks associated with seeking leveraged investment results and who plan to actively monitor and manage their positions. There is no guarantee that these ETFs will meet their investment objectives.

To assist investors in understanding these complex instruments, Direxion offers extensive educational resources. The Direxion Leveraged and Inverse ETF Education Center provides brochures, videos, and a self-paced online course to help investors determine if leveraged ETFs are suitable for their investment strategies.

Founded in 1997, Direxion has built a reputation for developing products that precisely express market perspectives and allow investors to manage their risk exposure. As of June 30, 2024, the company manages approximately $42.9 billion in assets.

Investors considering these funds should carefully review the prospectus and summary prospectus, which contain detailed information about investment objectives, risks, charges, and expenses. Leveraged and inverse ETFs pursue daily leveraged investment objectives, making them riskier than alternatives that do not use leverage. These funds seek daily goals and should not be expected to track the underlying index over periods longer than one day. They are designed for sophisticated investors who understand leverage risk and who actively manage their investments.

Risks associated with these funds include, but are not limited to, effects of compounding and market volatility, counterparty risk, market risk, rebalancing risk, intra-day investment risk, and risks specific to the information technology sector. For the Direxion Daily Concentrated Qs Bull 2X Shares, additional risks include daily index correlation and leverage risk. For the Direxion Daily Concentrated Qs Bear 1X Shares, additional risks include shorting or inverse risk and daily inverse index correlation risk.

For more information, investors can visit the Direxion website.