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Direxion, a pioneer in Single Stock Leveraged and Inverse ETFs, expanded its suite of high-powered trading tools with the launch of four new funds tracking the performance of Eli Lilly and Company (LLY) and Palo Alto Networks, Inc. (PANW). These funds provide traders with amplified, or inverse, exposure to two of the most dynamic sectors – pharmaceuticals and cybersecurity – through the Direxion Daily LLY Bull 2X Shares (Ticker: ELIL) and Direxion Daily LLY Bear 1X Shares (Ticker: ELIS), or the Direxion Daily PANW Bull 2X Shares (Ticker: PALU) and Direxion Daily PANW Bear 1X Shares (Ticker: PALD).
“These new ETFs give active traders an edge, whether they want to double down on momentum, or hedge against volatility, in two industry-leading stocks,” said Douglas Yones, CEO of Direxion. “Eli Lilly’s innovation in healthcare, and Palo Alto Networks’ in cybersecurity, make them prime candidates for our growing suite of tactical trading tools. We remain committed to launching new ETF solutions for short-term traders, with more to come in the near future."
As ground-breaking products built for active traders, Direxion’s pairs of single stock leveraged and inverse ETFs are meant to be used for short-term trading purposes. Leveraged and inverse single stock ETFs should not be viewed as buy and hold investments, but rather trading tools for traders with a high-risk tolerance. In addition, unlike traditional ETFs, or even other levered and/or inverse ETFs, these ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification.
All Direxion leveraged and inverse ETFs are intended only for investors with an in-depth understanding of the risks associated with seeking leveraged investment results, and who plan to actively monitor and manage their positions. There is no guarantee these ETFs will meet their objective. Please visit the Direxion Leveraged and Inverse ETF Education Center, where you will find educational brochures, videos, and a self-paced online course to help you understand if leveraged and inverse ETFs – including single stock ETFs – are right for you.
About Direxion:
Direxion equips investors who are driven by conviction with ETF solutions built for purpose and fine-tuned for precision. These solutions are available for a broad spectrum of investors, whether executing short-term tactical trades, or investing in thematic strategies. Direxion’s reputation is founded on developing products that precisely express market perspectives and allow investors to manage their risk exposure. Founded in 1997, the company has approximately $47.0 billion in assets under management as of December 31, 2024. For more information, please visit www.direxion.com.
There is no guarantee that the Funds will achieve their investment objectives.
For more information on all Direxion Shares ETFs, go to www.direxion.com, or call us at 866.301.9214.
An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a prospectus and summary prospectus call 866.476.7523 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.
Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock’s performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock’s performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock’s performance increases, and the Bear Fund will lose money even if the underlying stock’s performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in LLY or PANW.
Direxion Shares Risks – An investment in a Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund's investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund's other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning.
Leverage Risk – The Bull Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. A total loss may occur in a single day. Leverage will also have the effect of magnifying any differences in the Fund’s correlation with LLY or PANW and may increase the volatility of the Bull Fund.
Daily Correlation Risk - A number of factors may affect the Bull Fund’s ability to achieve a high degree of correlation with LLY or PANW and therefore achieve its daily leveraged investment objective. The Bull Fund’s exposure to LLY or PANW is impacted by LLY or PANW’s movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to LLY or PANW at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to LLY or PANW increases on days when LLY or PANW is volatile near the close of the trading day.
Daily Inverse Correlation Risk - A number of factors may affect the Bear Fund’s ability to achieve a high degree of inverse correlation with LLY or PANW and therefore achieve its daily inverse investment objective. The Bear Fund’s exposure to LLY or PANW is impacted by LLY or PANW’s movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to LLY or PANW at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to LLY or PANW increases on days when LLY or PANW is volatile near the close of the trading day.
Eli Lilly and Company Investing Risk – Issuer-specific attributes may cause an investment held by the Fund to be more volatile than the market generally. Eli Lilly and Company faces risks associated with: costly and uncertain research and development of its products; maintaining intellectual property protections; intense competition from multinational pharmaceutical companies, biotechnology companies, and lower-cost generic and biosimilar manufacturers; increasing government price controls and other public and private restrictions on pricing, reimbursement, and access for its drugs; the development of safety or efficacy concerns; among other risks..
Pharmaceutical Industry Risk – The profitability of pharmaceutical companies is highly dependent on the development, procurement and marketing of drugs and the development, protection and exploitation of intellectual property rights and other proprietary information. These companies may be significantly affected by the expiration of patents or the loss of, or the inability to enforce, intellectual property rights.
Healthcare Sector Risk — Companies in the healthcare sector may be affected by extensive, costly and uncertain government regulation, rising costs of medical products and services, changes in the demand for medical products and services, an increased emphasis on outpatient services, limited product lines, industry innovation and/or consolidation, changes in technologies and other market developments.
Palo Alto Networks, Inc. Investing Risk – Issuer-specific attributes may cause an investment held by the Fund to be more volatile than the market generally. Palo Alto Networks, Inc. faces risks associated with: development of new products and services may be difficult; may be unable to attract new customers; reliance on channel partners; credit and liquidity risk of customers; sales to government entities may be subject to greater scrutiny; intense competition; among other risks.
Information Technology Sector Risk — The value of stocks of information technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation, and competition, both domestically and internationally, including competition from competitors with lower production cost.
Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Industry Concentration Risk, Market Risk, Indirect Investment Risk, and Cash Transaction Risk. Additionally, for the Direxion Daily LLY Bear 1X Shares and Direxion Daily PANW Bear 1X Shares, Shorting or Inverse Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund.
Distributor: ALPS Distributors, Inc.
Contact Details
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Danielle Black, AD
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