New ETF based on low share price filed

Direxion Two Bucks ETF
Ticker: TBD
Exchange: NYSE Arca
Expense ratio: TBD
Original filing date: April 29, 2021
Effective date: July 13, 2021
Listing Date: TBD
CUSIP: TBD
Active: No

Investment Objective:
Seeks investment results, before fees and expenses, that track the Solactive Two Bucks Index, an index of 50 US securities with relatively low trading prices.

Index / Benchmark: Solactive Two Bucks Index
Constituents: 50

Index Methodology:
Universe: Solactive GBS United States All Cap Index
Quarterly rebalance in February, May, August, and November
To arrive at 50 securities for the index, at each rebalance securities must have:

• A minimum average daily value traded of $1 million over the prior 3 months
• A market capitalization of at least $85 million
• Not have had a reverse stock split between Index rebalancings

When index is rebalanced in August:

• The closing price for an Index component must be between $2 and $5 U.S. Dollars per share.

When the Index is rebalanced in February, May and November:

• The closing price for an Index component must be between $1.25 and $10 U.S. Dollars per share.

If above rules do not yield 50 names, then instead securities must have:

• A minimum average daily value traded of $1 million over the prior 3 months
• A market capitalization of at least $100 million
• A closing price between $2 and $5 U.S. Dollars per share
• Not had a reverse stock split between Index rebalancing dates
• All of the additional securities are then ranked in descending order by their share class-specific market capitalization and the securities with the highest share class-specific market capitalization are selected, until a total of 50 securities are selected for the Index.

Adviser: Rafferty Asset Management, LLC
Portfolio Managers: Paul Brigandi and Tony Ng
Administrator: U.S. Bancorp Fund Services, LLC
Fund accountant: Bank of New York Mellon
Transfer agent: Bank of New York Mellon
Custodian: Bank of New York Mellon
Distributor: Foreside Fund Services, LLC
Legal counsel: K&L Gates LLP
External accounting: Ernst & Young LLP
 
Prospectus is here.

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