Direxion to Liquidate Two ETFs Due to Low Asset Attraction
Direxion announces the closure of two ETFs, OOTO and CLDL, due to insufficient investment assets, marking a significant move in the ETF market.
Direxion Shares ETF Trust has decided to liquidate and close two of its ETFs, the Direxion Daily Travel & Vacation Bull 2X Shares (OOTO) and the Direxion Daily Cloud Computing Bull 2X Shares (CLDL), effective July 24, 2025. This decision, recommended by Rafferty Asset Management, LLC, comes after the Funds failed to attract sufficient investment assets, prompting the Board of Trustees to conclude that liquidation and closure would be in the best interest of the Funds and their shareholders.
The Funds will cease trading on the NYSE Arca, Inc. and will no longer accept purchase orders after the Closing Date. Shareholders have the option to sell their holdings before the Closing Date, but between July 24, 2025, and July 30, 2025, the Liquidation Date, selling shares may only be possible through certain broker-dealers, with no guarantee of a market for the shares. During this period, the Funds will liquidate their portfolios, increasing cash holdings and deviating from their investment objectives.
On or about the Liquidation Date, each Fund will distribute cash pro rata to remaining shareholders, a process that constitutes a taxable event and may include accrued capital gains and dividends. The net asset value on the Liquidation Date will reflect the costs associated with closing the Funds. Following the distributions, the Funds will terminate.
This move underscores the challenges some ETFs face in attracting sufficient assets to remain viable, highlighting the importance of investor interest and market conditions in the sustainability of investment products. For more information, visit https://www.direxion.com.