DPK — Direxion Daily MSCI Developed Markets Bear 3X Shares

DPK Fund Overview

DPK — Direxion Daily MSCI Developed Markets Bear 3X Shares is a US ETF managed by Direxion Shares ETF Trust, categorised as Inverse / Short. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US ETF
• Manager: Direxion Shares ETF Trust
• Category: Inverse / Short
• Assets under management: $10.00M
• Ticker: DPK
• SEC CIK: 0001424958
• SEC series ID: S000022772
• Share class ID: C000065900

DPK Investment Objective and Strategy

Direxion Daily MSCI Developed Markets Bear 3X Shares describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Direxion Shares ETF Trust.

Investment objective

The Fund seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the daily performance of the Index. The Fund does not seek to achieve its stated investment objective for a period of time different than a trading day.

Principal investment strategy

The Fund, under normal circumstances, invests in swap agreements, futures contracts, short positions or other financial instruments that, in combination, provide inverse (opposite) or short leveraged exposure to the Index equal to at least 80% of the Funds net assets (plus borrowing for investment purposes). On a day-to-day basis, the Fund is expected to hold money market funds, deposit accounts with institutions with high quality credit ratings, and/or short-term debt instruments that have terms-to-maturity of less than 397 days and exhibit high quality credit profiles, including U.S. government securities and repurchase agreements. The Index is a free float-adjusted market capitalization weighted index that is designed to measure the performance of large- and mid-capitalization companies across the following 21 developed market countries around the world, excluding the US and Canada: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.

The Index is reviewed and reconstituted semi-annually. As of December 29, 2017, the Index consisted of 928 constituents, which had an average market capitalization of $16.2 billion, a median market capitalization of $8 billion, market capitalizations ranging from $1.3 billion to $267.6 billion and were concentrated in the financials and industrials sectors. The components of the Index and the percentages represented by various sectors in the Index may change over time. The Fund will concentrate its investment in a particular industry or group of industries ( i.e. , hold 25% or more of its total assets in investments that provide inverse exposure to a particular industry or group of industries) to approximately the same extent as the Index is so concentrated. The Fund may gain inverse leveraged exposure by investing in a combination of financial instruments, such as swaps or futures contracts that provide short exposure to the Index, or to a representative sample of the securities in the Index that has aggregate characteristics similar to those of the Index or to an ETF that tracks the same Index or a substantially similar index, or the Fund may short securities of the Index, short an ETF that tracks the same Index or a substantially similar index.

Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. The Fund invests in derivatives as a substitute for directly shorting securities in order to gain inverse leveraged exposure to the Index or its components. The Fund seeks to remain fully invested at all times consistent with its stated inverse leveraged investment objective. The Fund seeks to remain fully invested at all times consistent with its stated investment objective. At the close of the markets each trading day, Rafferty positions the Funds portfolio so that its exposure to the Index is consistent with the Funds inverse leveraged investment objective. The impact of the Indexs movements during the day will affect whether the Funds portfolio needs to be re-positioned.

For example, if the Index has fallen on a given day, net assets of the Fund should rise, meaning that the Funds exposure will need to be increased. Conversely, if the Index has risen on a given day, net assets of the Fund should fall, meaning the Funds exposure will need to be reduced. This re-positioning strategy may result in high portfolio turnover. The terms daily, day, and trading day, refer to the period from the close of the markets on one trading day to the close of the markets on the next trading day. Because of daily rebalancing and the compounding of each days return over time, the return of the Fund for periods longer than a single day will be the result of each days returns compounded over the period, which will very likely differ from -300% of the return of the Index over the same period.

The Fund will lose money if the Index performance is flat over time, and as a result of daily rebalancing, the Indexs volatility and the effects of compounding, it is even possible that the Fund will lose money over time while the Index's performance decreases.

DPK Costs and Fees

DPK costs about $108 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.08%
• Gross expense ratio: 2.60%
• Portfolio turnover: 0%
• Brokerage commissions: 26.91 bps of average net assets (SEC N-CEN)

DPK Cashflows

Over the 12 months to 2020-01, Direxion Daily MSCI Developed Markets Bear 3X Shares had net inflows of $8.89M, from monthly SEC N-PORT filings.

DPK Debt Constituents

No individual debt constituents are reported in Direxion Daily MSCI Developed Markets Bear 3X Shares's latest SEC N-PORT filing.

DPK Prospectus and SEC Filings

Official Direxion Daily MSCI Developed Markets Bear 3X Shares filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2020-03-17
• Prospectus (485BPOS) — filed 2019-03-07
• Prospectus (485BPOS) — filed 2018-03-12
• Portfolio holdings (N-PORT) — filed 2020-03-30
• Portfolio holdings (N-PORT) — filed 2019-12-26
• Annual census (N-CEN) — filed 2020-01-14
• Annual census, amended (N-CEN/A) — filed 2019-04-03

Related Funds

Other Inverse / Short funds tracked on ABC INVEST:

• Direxion Daily Semiconductor Bear 3X Shares (SOXS)
• Direxion Daily S&P 500 Bear 3X Shares (SPXS)
• Direxion Daily S&P 500 Bear 1X Shares (SPDN)
• Direxion Daily Small Cap Bear 3X Shares (TZA)
• Direxion Daily 20+ Year Treasury Bear 3X Shares (TMV)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.