Direxion Shares ETF Trust has decided to liquidate and close 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 Rafferty Asset Management, LLC, comes after the funds failed to attract sufficient investment assets, prompting the Board of Trustees to conclude that liquidation would be in the best interest of the funds and their shareholders.
The closure process will see the funds cease trading on the NYSE Arca, Inc., and close to new investor purchases by the close of regular trading on the Closing Date. Shareholders are advised that selling their holdings before this date may incur customary brokerage charges, with limited opportunities to sell shares between July 24 and July 30, 2025, as the funds liquidate their portfolios. This liquidation phase may result in the funds not tracking their underlying indexes, diverging from their investment objectives.
On or about the Liquidation Date, each fund will distribute cash pro rata to remaining shareholders, a process that constitutes a taxable event and may include accrued capital gains and dividends. The net asset value on the Liquidation Date will reflect the costs associated with closing the funds. Following the distribution, the funds will terminate.
This development underscores the challenges faced by niche ETFs in attracting and retaining investor capital, highlighting the importance of due diligence and the dynamic nature of investment vehicles in responding to market demands and investor interest.
