Direxion Launches New Daily 2X Leveraged Tech Software ETF (SWAR)

Rhea-AI Summary

Direxion has launched the Daily Software Bull 2x Shares ETF (Ticker: SWAR), aiming to deliver 200% of the daily performance of the S&P North American Expanded Technology Software Index. This index includes major U.S. tech companies involved in application software, systems software, and home entertainment software.

Notable constituents include Microsoft, Adobe, and Oracle, with a median market capitalization of $41.7 billion as of August 31, 2021. Investors should assess the risks associated with leveraged ETFs before investing.

Positive

• Launch of Daily Software Bull 2x Shares ETF (SWAR) aimed at achieving 200% of daily performance of S&P North American Expanded Technology Software Index.
• Access to a diversified portfolio of leading tech companies like Microsoft, Adobe, and Oracle.
• Focus on the rapidly evolving sectors of application, systems, and home entertainment software.

Negative

• Investors face risks associated with leveraged ETFs, including potential loss of capital and market volatility.
• No guarantee that the Fund will achieve its investment objective.

NEW YORK, Dec. 16, 2021 /PRNewswire/ -- Direxion announced today the launch of the Direxion Daily Software Bull 2x Shares (Ticker: SWAR). The Fund seeks to achieve 200% of the daily performance of S&P North American Expanded Technology Software Index.

The S&P North American Expanded Technology Software Index provides exposure to U.S. tech stocks engaged in application software, systems software, and home entertainment software sub-industries, as well as applicable supplementary companies.

"Software remains an important part of the information technology sector. At this point in technological development, software is ubiquitous to the point no one thinks about it, considering it is everywhere and anywhere," said David Mazza, Managing Director, Head of Product at Direxion. "As this development continues to evolve, along with an uptick in volatility, the application, systems, and home entertainment software industry is one traders may want to consider." 

Traders seeking to gain 200% daily exposure to application, systems, and home entertainment tech software stocks, can access companies such as Microsoft Corp (MSFT), Adobe (ADBE), Intuit (INTU), Oracle (ORCL), Workday (WDAY) and others through this leveraged application, systems, and home entertainment software ETF ($SWAR). For additional application, systems, and home entertainment software stocks, see the table below.

As of August 31, 2021, the 122 constituents had a median total market capitalization of $41.7 billion, total market capitalizations ranging from $1.5 billion to $2.3 trillion, and were concentrated in information technology sector. Top ten index holdings are as follows:

2X Tech Software ETF (Ticker: SWAR) Index Holdings

Name	Ticker	Weight (%)
Microsoft Corp	MSFT	9.54
salesforce.com Inc	CRM	9.38
Adobe Inc	ADBE	8.68
Intuit Inc	INTU	6.72
Oracle Corp	ORCL	5.63
ServiceNow Inc	NOW	4.83
Autodesk Inc	ADSK	2.11
Palo Alto Networks Inc	PANW	2.01
Synopsys Inc	SNPS	1.96
Workday Inc	WDAY	1.95

Source: Source: Bloomberg Finance, L.P., S&P, as of 11.30.2021.

Like all leveraged ETFs, this Direxion ETF is 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 that this Fund will meet its objective.

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 $25.1 billion in assets under management as of September 30, 2021. 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 daily leveraged ETFs, go to www.direxion.com, or call us at 866.301.9214.

Leveraged ETFs are not suitable for all investors and should be utilized only by investors who understand the risks associated with seeking daily leveraged and inverse investment results, and intend to actively monitor and manage their investments. Due to the daily nature of the leveraged and inverse investment strategies employed, there is no guarantee of long-term inverse returns. Past performance is not indicative of future results.

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 Fund's prospectus and summary prospectus call 866-716-0735 or visit our website at direxion.com. A Fund's prospectus and summary prospectus should be read carefully before investing.

Direxion Shares Risks - An investment in the ETFs involves risk, including the possible loss of principal. The ETFs are non-diversified and include risks associated with concentration that results from an ETF's investments in a particular industry or sector which can increase volatility. The use of derivatives such as futures contracts and swaps are subject to market risks that may cause their price to fluctuate over time. The ETFs do not attempt to, and should not be expected to, provide returns which are a multiple of the return of their respective index for periods other than a single day. For other risks including leverage, correlation, daily compounding, market volatility and risks specific to an industry or sector, please read the prospectus.

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 costs. In addition, many information technology companies have limited product lines, markets, financial resources or personnel. The prices of information technology companies and companies that rely heavily on technology, especially those of smaller, less-seasoned companies, tend to be more volatile and less liquid than the overall market.

Distributor: Foreside Fund Services, LLC.

CONTACT:	James Doyle
	JConnelly
	973.850.7308
	jdoyle@jconnelly.com

 

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SOURCE Direxion

FAQ

What is the Direxion Daily Software Bull 2x Shares ETF (SWAR)?

SWAR is a leveraged ETF that seeks to achieve 200% of the daily performance of the S&P North American Expanded Technology Software Index.

Which companies are included in the SWAR ETF?

SWAR ETF includes major tech companies like Microsoft (MSFT), Adobe (ADBE), and Oracle (ORCL).

What is the risk associated with investing in the SWAR ETF?

Investing in SWAR involves risks like potential loss of principal and market volatility, suitable only for sophisticated investors.

What was the median market capitalization of the index constituents as of August 31, 2021?

The median market capitalization was $41.7 billion.

Can I expect long-term returns from the SWAR ETF?

There is no guarantee of long-term returns as leveraged ETFs are designed for daily trading.