Direxion Fallen Knives ETF (NIFE)

Overview

Our fund primarily focuses on investing in a unique subset of the U.S. equity market. Specifically, we aim to allocate at least 80% of our assets toward securities that are part of an index or have similar economic characteristics to those securities. This approach is not usual in the investment world; however, it is our belief that it allows us to target companies that have gone through significant share price reductions over the past year yet exhibit strong financial health. This financial resilience suggests that these companies hold the potential for share price recovery in the future. It's important to note that our investment strategy renders our fund non-diversified, focusing on a specific segment of the market, as designed by Indxx, LLC. This targeted approach is central to our investment philosophy and objectives.

Products and Services

Our primary offering centers around a targeted investment fund with a distinct focus on recovery potential within the U.S. equity market. Listed below are the key aspects of our products and services:

• Securities Investment

We invest a significant portion of our assets in securities that are either part of a specific index or possess similar economic characteristics to those within the index. This index, designed by Indxx, LLC, includes U.S. equity securities that have shown substantial share price declines over the last year but are assessed to have solid financial health, hinting at the possibility of future recovery.

• Focus on Financial Health and Recovery Potential

In choosing our investments, we specifically look for companies that, despite their recent price drops, exhibit strong underlying financial health. Our strategy is grounded in the belief that such companies are likely to rebound, offering our investors a chance for significant gains. This approach requires a meticulous evaluation of each company's financial condition and prospects for price recovery.

• Non-Diversified Fund Strategy

Our fund adopts a non-diversified investment strategy, meaning we invest in a concentrated selection of securities. This approach allows us to target our investments more precisely but also involves a higher level of risk compared to diversified funds. Our focus is squarely on a subset of the market—those companies identified by Indxx, LLC's index as having potential for recovery based on their financial health and recent share price declines.