DIREXION SHARES ETF TRUST
DIREXION DAILY GOLD MINERS INDEX BULL 3X SHARES (NUGT)
DIREXION DAILY JUNIOR GOLD MINERS INDEX BULL 3X SHARES (JNUG)
DIREXION DAILY BRAZIL BULL 3X SHARES (BRZU)
DIREXION DAILY REAL ESTATE BULL 3X SHARES (DRN)
DIREXION DAILY 20+ YEAR TREASURY BULL 3X SHARES (TMF)
Supplement dated July 26, 2016 to the
Summary Prospectuses, Prospectuses and Statement of Additional Information (“SAI”)
The Board of Trustees of the Direxion Shares ETF Trust (“Trust”) has approved, based on the recommendation of Rafferty Asset Management, LLC, the investment adviser to the Direxion Daily Gold Miners Index Bull 3X Shares (NUGT), Direxion Daily Junior Gold Miners Index Bull 3X Shares (JNUG), Direxion Daily Brazil Bull 3X Shares (BRZU), Direxion Daily Real Estate Bull 3X Shares (DRN) and the Direxion Daily 20+ Year Treasury Bull 3X Shares (TMF) (each a “Fund” and collectively the “Funds”), share splits of the issued and outstanding shares of the Funds.
After the close of the markets on August 24, 2016 (the “Payable Date”), each Fund will affect a split of its issued and outstanding shares as follows:Forward Split Ratio
Approximate increase in total number of outstanding shares
Direxion Daily Junior Gold Miners Index Bull 3X Shares (JNUG)
10 for 1
900%
Direxion Daily Gold Miners Index Bull 3X Shares (NUGT)
5 for 1
400%
Direxion Daily Brazil Bull 3X Shares (BRZU)
4 for 1
300%
Direxion Daily Real Estate Bull 3X Shares (DRN)
4 for 1
300%
Direxion Daily 20+ Year Treasury Bull 3X Shares (TMF)
4 for 1
300%
As a result of these share splits, shareholders of each Fund will receive four, five or ten shares for each share held of the applicable Fund as indicated in the table above. Accordingly, the number of each Fund’s issued and outstanding shares will increase by the approximate percentage indicated above.
All share splits will apply to shareholders of record as of the close of NYSE Arca, Inc. (the “NYSE Arca”) on August 23, 2016 (the “Record Date”), payable after the close of the NYSE Arca on the Payable Date. Shares of the Funds will begin trading on the NYSE Arca on a split-adjusted basis on August 25, 2016 (the “Ex-Date”). On the Ex-Date, the opening market value of each Fund’s issued and outstanding shares, and thus a shareholder’s investment value, will not be affected by the share split. However, the per share net asset value (“NAV”) and opening market price on the Ex-Date will be approximately one-fourth, one-fifth or one-tenth for the Funds. The tables below illustrate the effect of a hypothetical four-for-one, five-for-one and ten-for-one split on a shareholder’s investment.
4-for-1 Share Split
Period # of Shares Owned Hypothetical NAV Total Market Value
Pre-Split 100 @ $40 = $4,000
Post-Split 400 @ $10 $4,000
5-for-1 Share Split
The Trust’s transfer agent will notify the Depository Trust Company (“DTC”) of the forward split and instruct DTC to adjust each shareholder’s investment(s) accordingly. DTC is the registered owner of the Funds’ shares and maintains a record of the Funds’ record owners.
The share splits will not result in a taxable transaction for holders of the Funds’ shares. No transaction fees will be imposed on shareholders in connection with the share splits.
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Please retain a copy of this Supplement with your Summary Prospectus, Prospectus and SAI
