First ETF to offer direct access to six popular agricultural commodities
NEW YORK, June 1, 2022 /PRNewswire/ — Direxion (www.direxion.com), a leading provider of leveraged, inverse and thematic ETFs, today announced the launch of the Direxion Breakfast Commodities Strategy ETF (Ticker: BRKY), a one-of-a-kind exchange-traded fund offering exposure to the commodities that make up the most important meal of the day.
BRKY tracks the S&P GSCI Dynamic Roll Breakfast Index (OJ 5% Capped), which includes a basket of six commodities: corn, coffee, lean pork (bacon), orange juice concentrate, sugar and wheat. As the first ETF comprised of these commodity futures, BRKY provides access to commodities whose prices are rising due to supply chain pressures, geopolitical tensions and weather-related issues. In times of persistent inflation, this basket of commodities can offer strong diversification characteristics, due to their uncorrelated returns relative to stocks and bonds.
“2022 has been one of the toughest environments for traditional wallets in decades,” said David Mazza, Managing Director and Chief Product Officer of Direxion. “Investors can no longer rely solely on stocks and bonds to achieve their financial goals. Breakfast items can play an important role in diversification, as well as a hedge against the inflation that we all feel in our lives. wallets.”
The global food supply chain is more interconnected than ever and is unfortunately under pressure on prices due to the conflict in Ukrainedroughts in countries like Braziland other countries like India restricting food exports. In fact, food prices reached their highest levels on record in April 2022, according to the Food and Agriculture Organization of the United Nations (FAO). Year-over-year, they have increased by 30%, underscoring the extreme nature of these challenges.
“Everyone is feeling the impact of inflation,” Mazza said. “Even the price of a cup of coffee or a bowl of cereal has skyrocketed. But there is an opportunity to profit from this price rise in your portfolio by investing in these commodities with BRKY.”
Direxion equips conviction-driven investors with purpose-built ETF solutions honed for precision. These solutions are available to a wide range of investors, whether they execute short-term tactical trades or invest in thematic strategies. Direxion’s reputation is built on developing products that accurately express market insights and enable investors to manage their risk exposure. Founded in 1997, the company has approximately $28.6 billion of assets under management at March 31, 2022. For more information, visit www.direxion.com.
There can be no assurance that the Funds will achieve their investment objectives.
For more information on all Direxion ETFs, visit www.direxion.comor call us at 866.301.9214.
An investor should carefully consider the investment objective, risks, charges and expenses of a Sub-Fund before investing. A Sub-Fund’s prospectus and simplified prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus, call 866-716-0735 or visit our website at direxion.com. A Fund’s prospectus and simplified prospectus should be read carefully before investing.
Direxion Shares ETF Risks –An investment in the Fund involves risks, including possible loss of principal. The Fund is not diversified and involves risks associated with concentration resulting from the Fund’s investments in a particular industry, sector or geographic region, which may result in increased volatility. The Fund’s use of derivative instruments such as futures and swaps is subject to market risks which may cause their prices to fluctuate over time. The Fund’s risks include index correlation risk, index strategy risk, derivatives risk, commodity derivatives risk, futures strategy risk, breakfast products, agriculture investment risk, market risk, counterparty risk, cash transaction risk, subsidiary investment risk, interest rate risk and tax risk. Please see the summary and full prospectus for a more complete description of these and other Fund risks.
Exchange-traded commodity futures contracts are generally volatile and not suitable for all investors. The value of a commodity-linked derivative investment is generally based on the price movements of a physical commodity and may be affected by changes in overall market movements, index volatility, variations in interest rates or factors affecting a particular industry or commodity, such as global pandemics, weather and other natural disasters, changes in supply and production, embargoes, tariffs and economic developments, international policies and regulations and changes in demand from speculators and/or investors. Commodity derivatives may also be subject to credit and interest rate risks which generally affect the value of debt securities. The Fund’s investments in derivative instruments may present additional and greater risks than those associated with a direct investment in securities or other investments.
The risks associated with the use of futures contracts are (a) the imperfect correlation between the variation in the market value of the instruments held by the Fund and the price of the futures contract; (b) the possible absence of a liquid secondary market for a futures contract and the resulting inability to close out a futures contract when desired; (c) losses caused by unexpected market movements, which are potentially unlimited; (d) the Index’s inability to correctly predict the direction of security prices, interest rates, currency exchange rates and other economic factors; (e) the possibility that the counterparty will default on its obligations; and (f) if the Fund does not have sufficient liquidity, it may have to sell securities or financial instruments from its portfolio to meet the daily variation margin requirements, which may lead the Fund to sell securities or financial instruments at a time when it may be disadvantageous to do so.
Distributor: Foreside Fund Services, LLC.
Media Contact: Douglas Hesneyplease
Same as public relations
View original content to download multimedia: https://www.prnewswire.com/news-releases/direxion-launches-breakfast-commodities-strategy-etf-brky-301558381.html