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 was made following a recommendation from the Funds’ adviser, Rafferty Asset Management, LLC, due to the funds' inability to attract sufficient investment assets. The Board of Trustees determined that liquidation and closure would be in the best interest of the Funds and their shareholders.
The ETFs will stop trading on the NYSE Arca, Inc., and will no longer accept purchase orders after the closing date. Shareholders are advised to sell their holdings before July 24, 2025, to avoid potential difficulties in finding buyers during the liquidation phase from July 24 to July 30, 2025. During this period, the Funds will not track their underlying indices, deviating from their intended investment objectives.
On or around the Liquidation Date, each Fund will distribute cash pro rata to remaining shareholders, marking a taxable event. These distributions may include accrued capital gains and dividends, with the net asset value adjusted to reflect the costs of the Funds' closure. After completing the distributions, the Funds will terminate operations. This development highlights the operational challenges niche ETFs encounter in maintaining adequate asset levels, underscoring the critical role of investor interest and favorable market conditions in the viability of specialized financial products. For more information, visit https://www.direxion.com.
