Direxion Shares ETF Trust has announced the liquidation and closure of two of its Exchange-Traded Funds (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, recommended by Rafferty Asset Management, LLC, comes as a result of the Funds' failure to attract sufficient investment assets, a move deemed in the best interest of the Funds and their shareholders.
The closure process will see the Funds cease trading on the NYSE Arca, Inc., and halt new investor purchases by the close of regular trading on the Closing Date. Shareholders are advised that selling their holdings before this date may incur customary brokerage charges, with limited selling opportunities available between July 24 and July 30, 2025, as the Funds enter liquidation. During this period, the Funds will not track their underlying indices, diverging from their investment objectives.
On or around the Liquidation Date, remaining shareholders will receive cash distributions, a taxable event that may include accrued capital gains and dividends. The net asset value on this date will account for the costs associated with the Fund's closure. Following the completion of distributions, the Funds will officially terminate.
This development underscores the volatile nature of thematic and leveraged ETFs, highlighting the risks associated with such investment vehicles. Investors are reminded of the importance of understanding a Fund's objectives, risks, and expenses before investing, as outlined in the prospectus. For more information, visit https://www.direxion.com.
