Fund Description: Direxion Daily CSI 300 China A Shares Bear 1X Shares is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the Direxion Shares ETF Trust, an investment management company. INVESTMENT OBJECTIVE: The Direxion Daily CSI 300 China A Shares Bear 1X Shares seeks daily investment results, before fees and expenses, of 100% of the inverse of the performance of the CSI 300 Index. The Fund seeks daily leveraged investment results and does not seek to achieve its stated investment objective over a period of time greater than one day. The Fund is different and much riskier than most exchange-traded fund and is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily leveraged investment results, understand the risks associated with the use of leverage and are willing to monitor their portfolios as frequently as daily. INDEX DESCRIPTION: The CSI 300 Index is a modified free-float market capitalization weighted index comprised of the largest and most liquid stocks in the Chinese A-share market. Index constituent stocks must have been listed for more than three months (unless the stock's ranking is among the top 30 of all A-shares). A-shares are issued by companies incorporated in China. A-shares are traded in renminbi (RMB) on the Shenzhen or Shanghai Stock Exchanges. Foreign investors that have been approved will qualify and receive RQFII or QFII licenses then will apply to the China’s State Administration of Foreign Exchange for a specific aggregate dollar amount investment quota in which the RQFII or QFII can invest in A-shares. Since not licensed, the Fund expects to invest a majority of its assets in other investment companies (including ETFs) that seek to replicate the Index, swaps, futures contracts and other types of derivative instruments or financial instruments, including swaps on the index or swaps on funds that seek to replicate the performance of the Index to obtain the inverse exposure necessary to achieve its investment objective. FUND STRATEGY: The Fund, under normal circumstances, creates short positions by investing at least 80% of its assets in: futures contracts; options on securities, indices and futures contracts; equity caps, floors and collars; swap agreements; forward contracts; short positions; reverse repurchase agreements; exchange-traded funds (ETFs); and other financial instruments that, in combination, provide inverse exposure to the CSI 300 Index (Index). On a day-to-day basis the Fund invests the remainder of its assets in money market funds, depository accounts with institutions with high quality credit ratings or short-term debt instruments that have terms-to-maturity of less than 397 days and exhibit high quality credit profiles, including U.S. government securities and repurchase agreements. The Fund does not invest in equity securities. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. The Fund invests in derivatives as a substitute for directly shorting securities in order to gain inverse exposure to the Index or its components. The impact of the Index’s movements during the day will affect whether the Fund’s portfolio needs to be re-positioned. FUND MANAGEMENT: Rafferty Asset Management, LLC is the Fund’s investment adviser.