Direxion High Growth ETF (HIPR) Exchange: NYSE ARCA

The Fund, under normal circumstances, invests at least 80% of its net assets (plus borrowing for investment purposes) in the securities that comprise the Index. The Index seeks to identify domestic “high” growth companies by scoring securities for Quality, Momentum, Value, and Volatility factors and for representing Value or Growth stocks. The Index identifies Growth companies as those that, historically, have had high sales and forecasted high earnings and high cash flow growth relative to increases in share value. The Index identifies Value stocks, based on their market prices, as those trading at lower ratios to their fundamentals (e.g., price-to-book, price-to-equity, etc.). The Index excludes Value stocks and limits its constituents to large or medium capitalization Growth stocks. To such Growth stocks, the Index applies a Quality screen to seek to capture profitable companies that generate consistently strong cash flows and are not highly levered. The Index also applies a Momentum screen to seek to identify companies with strong total returns during the previous 12 months with the expectation that such companies will continue to outperform (on a total return basis) in the near term. The Index also scores such securities based on historical volatility and attempts to neutralize the impact of market volatility on returns by capturing as Index constituents stocks whose Volatility approximates that of the entire U.S. large- and mid-capitalization markets. By applying these factors, the Index seeks to identify Growth companies with healthy balance sheets and positive market momentum, as reflected in increases in their share prices that are not driven by market volatility. The Index methodology deems such companies to be “high” growth companies due to their being positioned to achieve significant near-term outperformance relative to other Growth companies. At each rebalance date, securities are given a weight of between 0.10% and 20% with the highest scoring securities under the Index methodology earning the heaviest weights in the Index. The Index is reviewed and rebalanced semi-annually by FTSE Russell (the “Index Provider”). As of May 12, 2020, the Index was comprised of 151 constituents, which had a median total market capitalization of $54.7 billion, total market capitalizations ranging from $502 million to $1.4 trillion and were concentrated in the information technology, communication services, and consumer discretionary 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 the stocks of a particular industry or group of industries) to approximately the same extent as the Index is so concentrated. The Fund uses a “passive” or indexing approach to attempt to achieve its investment objective. The Fund does not try to outperform the Index and does not generally take temporary defensive positions. Although the Fund intends to fully replicate the Index, at times the Fund may hold a representative sample of the securities in the Index that have aggregate characteristics similar to those of the Index. This means the Fund may not hold all of the securities included in the Index, its weighting of investment exposure to such stocks or industries may be different from that of the Index and it may hold securities that are not included in the Index. The Fund may utilize exchange-traded funds (“ETFs”) and other investment companies to fully replicate the Index or hold a representative sample of securities in the Index. The Fund will rebalance its portfolio when the Index rebalances. Additionally, if the Fund receives a creation unit in cash, the Fund repositions its portfolio in response to assets flowing into or out of the Fund.