Direxion Daily Energy Bear 3x Shares (the Fund), formerly Direxion Energy Bear 3X Shares, seeks daily investment results of 300% of the inverse (or opposite) of the price performance of the Russell 1000 Energy Index (the Energy Index). The Energy Index is a capitalization-weighted index of companies engaged in energy-related businesses, such as oil companies involved in the exploration, production, servicing, drilling and refining processes, and companies primarily involved in the production and mining of coal and other fuels used in the generation of consumable energy. Also included are gas distribution, gas pipeline and related companies. The Fund does not invest in equity securities. The Fund creates short positions by investing at least 80% of its net assets in financial instruments that, in combination, provide leveraged and unleveraged exposure to the Energy Index, and the remainder in money market instruments. The Fund’s investment advisor is Rafferty Asset Management LLC.