Exposure Targeting Application (ETA)
The Exposure Targeting Application (ETA) is a proprietary, patented, investment application developed by Direxion Funds designed to be used with leveraged index funds. Direxion Funds has developed this innovative tool to directly address the challenges associated with over or under exposure caused by compounding.
Educational Literature
ETA Information SheetUnderstanding the Expected Performance of Leveraged Index Funds
The ETA seeks to allow investors to:
- Establish customized leveraged exposure to the index tracked by a leverage index fund in an amount different than that sought by the fund; and
- Identify the differences between the market exposure provided by an investment in a leveraged index fund and an investor's hypothetical exposure in a model account, in order for the investor to modify the portfolio accordingly.
The ETA is designed to allow investors to customize exposure to Direxion's leveraged funds (both positive and negative) by linking fund allocations with money market fund accounts. It attempts to allow daily beta leveraged index funds to generate return paths that more closely track the cumulative performance of an underlying index through time.
Integrated or Standalone
ETA can be accessed as an integrated feature within Direxion’s group trading platform or as a standalone tool on Direxion's advisor site.
Users of the Direxion Group Trading Platform can add ETA as an integrated feature. In this version, transactions will be automatically executed based on the instructions and parameters supplied by the user. The combination of Direxion's group trading and ETA may allow users to achieve desired beta for numerous accounts and investment models with minimal effort.
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An investor should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. The prospectus contains this and other information about the funds. To obtain a prospectus, please call the Direxionfunds at 1 800-851-0511. The prospectus should be read carefully before investing.
Investing in index funds may be more volatile than investing in broadly diversified funds. The use of leverage by a mutual fund increases the risk to the fund. The more a fund invests in leveraged instruments the more the leverage will magnify gains or losses on those investments.
Date of first issue: June 3, 2008 Distributor: Rafferty Capital Markets, LLC.