Direxion Leveraged ETF Distributions
November 20th, 2009
Overnight holders (Nov. 19 to Nov. 20) of some Direxion leveraged ETFs (ERX, EDC, TNA, etc.) may have been confused to see the price drop around 10%. The reason is due to the funds paying distributions. For example, excluding normal market action, ERX dropped $4.65 due to a $4.65/share dividend. Someone holding 100 shares will receive $465 which will be taxed as a short term capital gain. The date of payment is November 30, 2009.
More information can be found on the Direxion website: http://www.direxionshares.com/pdfs/DS_Div_1109.pdf