Direxion Monthly 7-10 Year Treasury Bull & Bear 2X Funds

  • FUND SYMBOL

    DXKLX

  • MONTHLY TARGET

    200%

  • BLOOMBERG INDEX

    IDCOT7TR

  • CUSIP

    254939689

  • EXPENSE RATIO (GROSS/NET %)

    1.51 / 1.51*

  • Duration

    15.22 Years

  • INCEPTION DATE

    Mar 31, 2005

  • FUND SYMBOL

    DXKSX

  • MONTHLY TARGET

    -200%

  • BLOOMBERG INDEX

    IDCOT7TR

  • CUSIP

    254939184

  • EXPENSE RATIO (GROSS/NET %)

    1.50 / 1.50*

  • Duration

    -15.22 Years

  • INCEPTION DATE

    May 17, 2004

Overview

The Direxion Monthly 7-10 Year Treasury Bull & Bear 2X Funds seek monthly investment results, before fees and expenses, of 200%, or 200% of the inverse (or opposite), of the calendar month performance of the ICE U.S. Treasury 7-10 Year Bond Index. There is no guarantee the funds will meet their stated investment objective.

Direxion’s Leveraged Index-based Funds seek to provide monthly returns which are a multiple of the returns of the relevant benchmark. In practice, this means that Leveraged Index-based Funds react to gains by increasing market exposure and react to losses by decreasing market exposure.

Strategy & Benefits

Key Benefits

You know that TRADING is different than investing. But the opportunity to take advantage of short-term trends is only won, if you get the direction right.

Whether you’re a bull or a bear, Direxion is with you. Our leveraged and inverse Mutual Funds are tools built to help you:

  • Provide 2x monthly targeted magnified exposure to a diversified set of benchmark indexes 
  • Use precise derivative options to seek to optimize benchmark trading accuracy
  • Seek to reduce the impact of compounding through the use of monthly rebalancing

Leveraged mutual funds pursue monthly leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They seek to magnify the returns of their benchmarks on a monthly basis and should not be expected to track the underlying index over periods longer than one month. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments.

Target Index

The ICE U.S. Treasury 7-10 Year Bond Index (IDCOT7TR) is a market value weighted index that includes publicly issued U.S. Treasury securities that have a remaining maturity of greater than seven years and less than or equal to ten years. Eligible securities must be fixed rate, denominated in U.S. dollars, and have $300 million or more of outstanding face value, excluding amounts held by the Federal Reserve. Securities excluded from the Index are zero-coupon STRIPS, inflation linked securities, floating rate notes, cash management and Treasury bills, and any government agency debt issued with or without a government guarantee. One cannot directly invest in an index.

Index Bond Maturities %

9-10 Years 31.46
7-9 Years 68.54
5-7 Years 0.00

Index Credit Ratings %

Aaa 100.00

The credit ratings are published rankings based on detailed financial analyses by a credit bureau, in this instance Moody’s, specifically as it relates to the bond issuer’s ability to meet debt obligations. The highest rating is Aaa, and the lowest is D. Securities with credit ratings of Baa and above are considered investment grade.

Index Statistics

Duration 7.61 Years
Weighted Average Maturity 8.44 Years
Weighted Average Coupon 2.31%
30 Day Volatility 4.37%

Duration is a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years.

The weighted average maturity of the time until all maturities on treasuries in the index. The higher the weighted average to maturity, the longer the bonds have in the index until maturity.

The weighted average coupon of the index is arrived at by weighting the coupon of each bond by its relative size in the portfolio.

Volatility is a measurement of risk based on daily volatility of price over the last 30 days of the period calculated using standard deviation.

Source: Bloomberg. Data as of 9/30/2017 and is subject to change at any time.

Related Reading

Why Monthly Leveraged Mutual Funds?

Here you will find educational materials that aim to streamline and simplify leveraged index-based mutual funds, helping you to effectively deploy them in support of your portfolio strategies.

This page contains in depth information on the nature of leveraged index-based funds and related topics. These literature pieces should provide you with a good understanding of industry concepts and how leveraged index-based funds may perform.

  • Monthly Leveraged Mutual Funds – The Direxion 2x monthly leveraged index-based mutual funds provide 200% (or 200% of the inverse) exposure to their benchmarks and the ability for investors to navigate changing markets with flexibility. This brochure is designed to provide you with details concerning the composition of these funds, their monthly rebalancing feature, and the potential risks associated with them.
  • Managing Intra-Month Purchases of Monthly Leveraged Index-Based Funds – This piece is designed to provided details on how to manage intra-monthly purchases of these funds, how to understand the changes in exposure that invariably occur each day of the month, and the tools that Direxion offers to help investors understand current exposure level – so they can make educated decisions about any leveraged index-based fund purchase they may be considering.
  • The Impact of Changing Market Exposure on Monthly Leveraged Index-Based Fund Performance – Leveraged index-based fund performance can be significantly affected both positively and negatively by fluctuating market exposure. This piece provides a clear understanding of how market exposure can affect performance of these investments over time.

Pricing and Performance

NAV information as of December 15, 2017. Line chart shows pricing trend over the last 30 days.

fund symbol

DXKLX

  • Net asset value (NAV)

    • 34.86
    • -0.01
    • -0.03

fund symbol

DXKSX

  • Net asset value (NAV)

    • 29.12
    • 0.01
    • 0.03

* The Net Expense Ratio includes management fees, other operating expenses and Acquired Fund Fees and Expenses. If Acquired Fund Fees and Expenses were excluded, the Net Expense Ratio would be 1.35%. The Funds’ Adviser, Rafferty Asset Management, LLC (“Rafferty”) has entered into an Operating Expense Limitation Agreement with each Fund. Under the Operating Expense Limitation Agreement, Rafferty has contractually agreed to cap all or a portion of its management fee and/or reimburse each Fund for Other Expenses through September 1, 2019, to the extent that each Fund’s Total Annual Fund Operating Expenses exceed 1.35% of the Fund’s 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). If these expenses were included, the net expense ratio would be higher.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate. An investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Returns for performance under one year are cumulative, not annualized. For the most recent month-end performance please visit the funds website at roo-okt.ru.

Short-term performance, in particular, is not a good indication of the fund’s future performance, and an investment should not be made based solely on returns. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes. For additional information, see the fund’s prospectus.

Distributions

  • DXKLX
  • Monthly 7-10 Year Treasury Bull 2X Fund

There are no recent distributions available for this fund.

  • DXKSX
  • Monthly 7-10 Year Treasury Bear 2X Fund

There are no recent distributions available for this fund.