Boston-based alternative mutual fund provider Direxion has made changes to the investment strategy of Direxion S&P 1500 RC Volatility Response Shares (VSPR), Direxion S&P 500 RC Volatility Response Shares (VSPY) and Direxion S&P Latin America 40 RC Volatility Response Shares (VLAT), effective June 14.

Each fund tracks a rules-based S&P Risk Control Index, which in turn assigns a target volatility level for the corresponding S&P cap-weighted index. The Risk Control indexes are designed to respond to the volatility levels of the underlying indexes by adjusting the exposure levels to equities and U.S. Treasury Bills at various volatility levels. As volatility increases, exposure to equities will decrease and exposure to the cash component will increase and vice versa.

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