Boston-based Direxion Shares made changes to the investment strategy for the 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).
In June, the percentage exposure to the stock component of these funds was altered to a range between 10% and 100%. Exposure to the cash component ranges between 0% and 90%.
The funds operate according to a rules-based investment approach in which equity exposure is determined by volatility. Their strategy dictates that equity exposure should be reduced during periods of high overall market volatility.