Direxion to Shutter 9 ETFs

Direxion, the second-largest issuer of leveraged ETFs behind ProShares, announced that it will shutter nine of its triple-leveraged products next month. Rafferty Asset Management, the advisor to Direxion Shares ETF Trust, cited the funds' "inability to attract sufficient investment assets," as a reason for the closures. "Rafferty believes they cannot continue to conduct their business and operations in an economically efficient manner," said the company in a statement. The nine affected funds are: The Direxion Daily Agribusiness Bull 3X Shares COWL, Direxion Daily Agribusiness Bear 3X Shares COWS, Direxion Daily Basic Materials Bear 3X Shares MATS, Direxion Daily BRIC Bull 3X Shares BRIL, Direxion Daily BRIC Bear 3X Shares BRIS, Direxion Daily Healthcare Bear 3X Shares SICK, Direxion Daily India Bear 3X Shares INDZ, Direxion Daily Latin America Bear 3X Shares LHB and Direxion Daily Retail Bear 3X Shares RETS. Investors will no longer be able to purchase shares in the aforementioned products on September 5. On September 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, according to the statement. Direxion had 56 ETFs with almost $6.1 billion in assets under management at the end of July, accordig to data from the ETF Industry Association. For more on leveraged ETFs, click here.