Direxion to Liquidate Two ETFs Due to Insufficient Investment Assets

The Board of Trustees of the Direxion Shares ETF Trust has decided to liquidate and close two 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, based on the recommendation of the Funds’ adviser, Rafferty Asset Management, LLC, comes after the Funds struggled to attract sufficient investment assets. The Board concluded that liquidating and closing the Funds would be in the best interest of the Funds and their shareholders.

From the Closing Date, the Funds will cease trading on the NYSE Arca, Inc. and will no longer accept purchase orders. Shareholders have the option to sell their holdings before the Closing Date, but between July 24, 2025, and July 30, 2025, the Liquidation Date, selling shares may only be possible through certain broker-dealers, with no guarantee of a market for the Funds’ shares. During this period, the Funds will liquidate their portfolios, increasing cash holdings and deviating from their investment objectives and strategies.

On or about the Liquidation Date, each Fund will distribute cash pro rata to remaining shareholders, a process that constitutes a taxable event. These distributions may include accrued capital gains and dividends, with the Funds’ net asset value reflecting the costs of closure. Following the completion of distributions, the Funds will terminate.

This development underscores the challenges faced by niche ETFs in attracting and retaining investor interest, highlighting the importance of due diligence and the dynamic nature of investment strategies in volatile sectors. For more information, visit https://www.direxion.com.

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