Direxion Work From Home ETF (WFH US) – Portfolio Construction Methodology

The underlying Solactive Remote Work Index targets US-listed equities and ADRs that generate meaningful revenue from technologies enabling remote work. The universe requires primary US listing or ADR status and six-month ADV of at least 5m USD, then a natural-language algorithm screens public information for exposure to four themes: Cloud Technologies, Cybersecurity, Online Project and Document Management, and Remote Communications. Within each theme, securities receive a relevance “Index Score” and the 10 highest-scoring names are selected, resolving overlaps so each company appears in only one theme, typically producing 40 constituents. A buffer keeps existing members unless a new candidate ranks at least fifth in a theme while an incumbent falls to twentieth or lower, limiting turnover. Constituents are equally weighted at each review. The index is calculated on a net total return basis in USD and is reconstituted and rebalanced semi-annually using data from predetermined selection dates.

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