Curated News
By: NewsRamp Editorial Staff
June 27, 2025

Direxion to Liquidate Two ETFs Due to Low Investment Assets

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Original Source

TLDR

  • Investors can reassess their portfolios by divesting from Direxion's OOTO and CLDL ETFs before July 24, 2025, to avoid potential losses from the liquidation process.
  • Direxion will liquidate OOTO and CLDL ETFs by July 30, 2025, converting assets to cash and distributing proceeds to shareholders, with details on the process outlined.
  • The liquidation of Direxion's OOTO and CLDL ETFs ensures shareholders receive fair treatment and minimizes market disruption, reflecting responsible corporate governance.
  • Direxion's decision to close OOTO and CLDL ETFs highlights the dynamic nature of investment strategies and the importance of staying informed on market changes.

Impact - Why it Matters

This news is crucial for investors in the Direxion Daily Travel & Vacation Bull 2X Shares and Direxion Daily Cloud Computing Bull 2X Shares, as it directly affects their investment strategies and potential returns. The closure underscores the volatility and risks inherent in leveraged and inverse ETFs, serving as a reminder for investors to carefully assess their investment choices and the stability of the funds they invest in. It also highlights the importance of staying informed about fund performance and market trends to make timely decisions.

Summary

In a significant move, the Direxion Shares ETF Trust, advised by Rafferty Asset Management, LLC, has announced the liquidation and closure of two of its ETFs, the Direxion Daily Travel & Vacation Bull 2X Shares (OOTO) and the Direxion Daily Cloud Computing Bull 2X Shares (CLDL), due to insufficient investment assets. The decision, aimed at protecting the interests of the Funds and their shareholders, will see the Funds cease trading on the NYSE Arca by July 24, 2025, with a complete liquidation process concluding by July 30, 2025. Shareholders are advised to sell their holdings before the Closing Date to avoid potential market uncertainties during the liquidation phase. This event marks a pivotal moment for investors in these sectors, highlighting the risks associated with leveraged and inverse ETFs. For more details, visit www.direxion.com.

Source Statement

This curated news summary relied on content disributed by News Direct. Read the original source here, Direxion to Liquidate Two ETFs Due to Low Investment Assets

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