Direxion has expanded its portfolio with the introduction of four new Exchange-Traded Funds (ETFs) designed to track the performance of Cisco Systems, Inc. (CSCO) and QUALCOMM Incorporated (QCOM). These funds, namely the Direxion Daily CSCO Bull 2X ETF (CSCL), Direxion Daily CSCO Bear 1X ETF (CSCS), Direxion Daily QCOM Bull 2X ETF (QCMU), and Direxion Daily QCOM Bear 1X ETF (QCMD), offer traders amplified or inverse exposure to these technology stocks. This move underscores Direxion’s commitment to providing sophisticated trading tools for dynamic market engagement.

Douglas Yones, CEO of Direxion, highlighted the significance of Cisco and Qualcomm in the digital economy, stating that these ETFs enable traders to leverage short-term movements in these pivotal stocks. However, these products are specifically designed for short-term trading and are not suitable for long-term investment strategies. They cater to experienced traders who possess a high risk tolerance and an in-depth understanding of the leveraged investment landscape.

The new ETFs differ from traditional or even other leveraged and inverse ETFs by tracking the price of a single stock rather than an index, thereby eliminating diversification benefits. This characteristic introduces a higher degree of risk, as the funds’ performance is directly tied to the volatility of CSCO or QCOM. Investors are cautioned that these ETFs are intended for those who actively monitor and manage their positions, with no guarantee of meeting their investment objectives.

Risks associated with investing in these funds include leverage risk, daily correlation risk, and issuer-specific risks related to Cisco and Qualcomm. Additionally, the information technology sector and semiconductor industry present their own set of challenges, including rapid technological changes and intense competition. Direxion emphasizes the importance of understanding these risks before investing, offering educational resources through its Leveraged and Inverse ETF Education Center.

Investors are advised to carefully consider the funds’ investment objectives, risks, charges, and expenses. The prospectus and summary prospectus, available on Direxion’s website or by calling 866.476.7523, provide detailed information necessary for making an informed investment decision. It’s crucial to note that investing in these funds involves a high degree of risk, including the possibility of losing the entire investment in a single day.

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