by InvestorPlace Staff | August 6, 2012 11:19 am
Late last week, fund provider Direxion announced it would liquidate and shutter nine of its triple-leveraged exchange-traded funds on the recommendation of adviser Rafferty Asset Management, LLC. Those funds are:
The funds will stop trading on the NYSE Arca exchange and no longer will be open for purchase at the close of trading Sept. 5. Shareholders may sell their holdings before the closing date; those transactions are subject to customary brokerage charges. Between the closing date and the liquidation date, shareholders may only be able to sell their shares to certain broker-dealers, and there is no assurance that there will be a market for the Funds during that time period.
On Sept. 12, the funds will liquidate their assets and distribute cash pro rata to shareholders who have not previously redeemed or exchanged their shares. These payments are taxable and will include any accrued capital gains and dividends. Each fund’s net asset value will reflect the costs of closing the fund as calculated on the liquidation date. The funds will close when the distributions are complete.
For more information about the liquidation and termination process, call Direxion at (800) 851-0511.
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