November 30, 2010 will be the last day of trading for Direxion Daily 2-Year Treasury Bull 3x Shares (TWOL) and Direxion Daily 2-Year Treasury Bear 3x Shares (TWOZ). According to Rafferty Asset Management, the manager of the ETFs, the closures reflect insufficient trading demand and asset levels too low to be economically viable.
The November ETF Deathwatch contains both funds with TWOL garnering a fifth place ranking. The two ETFs, introduced in February 2010, currently have less than $10 million in combined assets.
I advise all shareholders to sell their holdings prior to the delisting on November 30 and to use a limit order when selling. Any shareholder that fails to do this will go through the liquidation process and have their payout reduced by the expenses incurred in closing the funds.
Additional information is in the press release dated November 12, 2010.
Disclosure covering writer, editor, publisher, and affiliates: No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.