DRN

The Direxion Daily Real Estate Bull 3X Shares (DRN) is an exchange-traded fund designed to deliver three times leveraged (+3x) the daily performance of the U.S. real estate sector. The ETF is managed by Direxion Investments and trades under the ticker DRN on NYSE Arca.

Classified as a leveraged sector equity ETF, DRN seeks to reflect, before fees and expenses, +300% of the daily return of the Real Estate Select Sector Index. The fund uses financial derivatives, including swaps, futures contracts, and other synthetic instruments, rather than directly holding all securities included in the benchmark index.

The strategy resets leverage exposure on a daily basis. As a result, cumulative returns over periods longer than one day may differ significantly from the +3x target due to compounding effects and market volatility.

The benchmark includes U.S. real estate companies and REITs drawn from the S&P 500 universe. The index undergoes periodic reviews, including rebalancing and potential changes in composition, which are mirrored by the ETF.

Composition / Exposure profile

DRN provides leveraged exposure to the U.S. real estate sector through derivatives linked to the benchmark index.

The ETF’s economic exposure is associated with segments including:

• Commercial REITs
• Residential REITs
• Office and corporate properties
• Industrial and logistics centers
• Shopping centers and retail real estate
• Real estate-related infrastructure

The ETF’s behavior is sensitive to U.S. interest rates, real estate-market conditions, and broader macroeconomic fluctuations in the United States.

Structure and costs

DRN shares trade on the secondary market on NYSE Arca during regular trading hours. Creation and redemption occur through authorized participants, helping maintain alignment between market price and net asset value.

The fund uses derivatives and daily operational adjustments to maintain leveraged exposure. DRN charges a management fee as outlined in its prospectus and does not apply a performance fee.

History and evolution of the ETF

The Direxion Daily Real Estate Bull 3X Shares was launched in 2009, during a period of expansion in leveraged ETFs tied to the U.S. equity market. Since inception, the fund has reflected movements associated with the U.S. real estate sector, financing conditions, and fluctuations across REIT markets.

In recent years, DRN has reflected changes in U.S. interest rates, pandemic-related impacts, fluctuations in commercial and residential real estate markets, and shifts in global macroeconomic conditions.

Additional Information

Direxion Daily Real Estate Bull 3X Shares (United States) is an exchange-traded fund (ETF), with assets under management totaling $45.46 Millions.

Over the past 12 months, Direxion Daily Real Estate Bull 3X Shares recorded a return of 19.67%, with its price trading between $8.10 and $11.35 during the same period.

The ETF is traded under the ticker DRN.