Editor's note: Any and all references to time frames longer than one trading day are for purposes of market context only, and not recommendations of any holding time frame. Daily rebalancing ETFs are not meant to be held unmonitored for long periods. If you don't have the resources, time or inclination to constantly monitor and manage your positions, leveraged and inverse ETFs are not for you.

Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock’s performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock’s performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock’s performance increases, and the Bear Fund will lose money even if the underlying stock’s performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in SHOP or LMT.

Traders now have four new ways to express their views on two closely watched companies—Shopify Inc. (Ticker: SHOP) and Lockheed Martin Corporation (Ticker: LMT)—thanks to the latest additions to Direxion’s lineup of Single Stock Daily Leveraged and Inverse ETFs.

These new ETFs are designed for tactical traders seeking magnified or inverse exposure to daily moves in Shopify and Lockheed Martin stock.

Shopify: High-Growth E-Commerce Meets High Expectations

As a leading e-commerce infrastructure platform, Shopify continues to reinvent online selling with powerful new tools and global reach. But its high-growth profile also means high scrutiny.

Bull Case for SHOP

• Upbeat Earnings and Forecast: Shopify, based in Canada, delivered Q2 revenue of $2.68 billion (up 31% year over year), beating estimates, and guided Q3 revenue growth in the mid-to-high-20s% range—sending the stock up significantly right after earnings. “We had factored into our guidance some potential impact from tariffs, which did not materialize,” said Shopify CFO Jeff Hoffmeister, CNBC.com reported.

• AI-Powered Seller Tools: Shopify has leaned into artificial intelligence to enhance its merchant platform, launching tools for product descriptions, marketing, analytics, and more.

• Global Expansion: Shopify’s international footprint continues to grow, with particular momentum in Europe and Southeast Asia. A stronger presence in emerging e-commerce markets could support top-line growth.

Bearish Catalysts for SHOP

• Consumer Weakness: As a discretionary-focused platform, Shopify could be vulnerable to any downturn in consumer spending or weakening retail sales data.

• Competitive Pressures: Amazon and other platform competitors continue to chip away at Shopify’s share, especially in U.S. small business attrition. Growing verticalized platforms may also erode merchant count.

• Valuation Risk: Even after a solid quarter, Shopify trades at elevated multiples relative to peers, The Motley Fool reports. Any signs of slowing growth—or margin pressure—could lead to a sharp revaluation.

Lockheed Martin: At the Center of Global Defense Cycles

Lockheed Martin remains one of the largest U.S. defense contractors, with long-term programs across air, space, and missile systems. Its revenue is closely tied to government budgets and geopolitical tensions, and defense stocks have performed well lately. The S&P Aerospace & Defense Select Industry Index* is up 54.9% over the past year as of August 5, more than doubling the 21.5% gain for the S&P 500 Index*, according to S&P Dow Jones Indices.

What the Bulls Like About LMT

• Defense Spending Tailwinds: Sustained U.S. defense budgets, plus additional funding for European and Indo-Pacific allies, may support Lockheed’s outlook. From fighter jets to missile systems, demand remains strong. Lockheed Martin aims to test a missile-killing satellite by 2028 as part of its Golden Dome strategy, Defense One reports.

• Multi-Year Backlog Growth: Earlier this year, Lockheed reported its largest backlog in company history—anchored by F-35 fighter jet orders, hypersonic weapons development, and space systems contracts. This provides multi-year revenue visibility.

• Geopolitical Momentum: Heightened global tensions—especially in Eastern Europe, the Middle East, and the South China Sea—can lead to increased procurement and defense spending among NATO and partner nations.

Bear Case for LMT

• Budget Delays or Cuts: While defense spending has remained resilient, any federal budget impasse, continuing resolution, or debt ceiling conflict could temporarily disrupt Lockheed’s contract flow.

• Execution Risk and Policy Scrutiny: Large programs carry complexity. Delays, cost overruns, or customer dissatisfaction (especially with international F-35 deliveries) could weigh on investor sentiment. Export controls, shifting foreign policy priorities, or increased scrutiny of defense contractors could introduce headline risk.

• New Lawsuit: A class action suit alleges that the company misled investors by downplaying the risks in its government contracts and overstating its ability to deliver on time, according to Fort Worth Report.

Trading SHOP and LMT

Shopify and Lockheed Martin operate in vastly different sectors—one driven by digital innovation and consumer trends, the other by global politics and government spending.

Direxion’s new Single Stock Leveraged & Inverse ETFs are:

• Direxion Daily SHOP Bull 2X ETF (Ticker: SHPU) and Direxion Daily SHOP Bear 1X ETF (Ticker: SHPD), which seek daily investment results, before fees and expenses, of 200% and 100% of the inverse (or opposite), respectively, of the performance of the common shares of Shopify Inc.

• Direxion Daily LMT Bull 2X ETF (Ticker: LMTL) and Direxion Daily LMT Bear 1X ETF (Ticker: LMTS), which seek daily investment results, before fees and expenses, of 200% and 100% of the inverse (or opposite), respectively, of the performance of the common shares of Lockheed Martin Corporation.

Like all of Direxion’s Single Stock Daily Leveraged & Inverse ETFs, they are not intended for buy-and-hold investors, but for short-term traders who want focused exposure to single-stock volatility.

*Definitions and Index Descriptions

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 866-476-7523 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.

Direxion Shares Risks – An investment in a Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund's investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund's other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning.

Leverage Risk – The Bull Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. A total loss may occur in a single day. Leverage will also have the effect of magnifying any differences in the Fund’s correlation with SHOP or LMT and may increase the volatility of the Bull Fund.

Daily Correlation Risk - A number of factors may affect the Bull Fund’s ability to achieve a high degree of correlation with SHOP or LMT and therefore achieve its daily leveraged investment objective. The Bull Fund’s exposure to SHOP or LMT is impacted by SHOP or LMT’s movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to SHOP or LMT at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to SHOP or LMT increases on days when SHOP or LMT is volatile near the close of the trading day.

Daily Inverse Correlation Risk - A number of factors may affect the Bear Fund’s ability to achieve a high degree of inverse correlation with SHOP or LMT and therefore achieve its daily inverse investment objective. The Bear Fund’s exposure to SHOP or LMT is impacted by SHOP or LMT’s movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to SHOP or LMT at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to SHOP or LMT increases on days when SHOP or LMT is volatile near the close of the trading day.

Shopify, Inc. Investing Risk – SHOP faces risks associated with: growth may be difficult to sustain; highly competitive business structure; data breach and privacy concerns; impact of the global economic conditions may adversely affect business operations; reliance on limited number of suppliers for payment processing; use of artificial intelligence may present additional risks; among other risks.

Lockhead Martin Corporation Investing Risk – LMT faces risks associated with: dependance on U.S. Government contracts; the F-35 program which is approximately 26% of the company’s net sales is reliant on continued government funding; extensive procurement laws and regulations; variability in current contracts and programs as well as performance and ability to control costs; more audits due to government contracts; heavy dependance on suppliers and subcontractors; reliant on development of new technology; public health events; international sales pose different economic, regulatory and competitive risks; among other risks.

Information Technology Sector Risk – The value of stocks of information technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation, and competition, both domestically and internationally, including competition from competitors with lower production costs.
Industrials Sector Risk – Stock prices of issuers in the industrials sector are affected by supply and demand both for their specific product or service and for industrials sector products in general.

Aerospace and Defense Industry Risk – The aerospace and defense industry can be significantly affected by government regulation and spending policies because companies involved in this industry rely, to a significant extent, on government demand for their products and services.

Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Industry Concentration Risk, Market Risk, Indirect Investment Risk, and Cash Transaction Risk. Additionally, for the Direxion Daily SHOP Bear 1X ETF and Direxion Daily LMT Bear 1X ETF, Shorting or Inverse Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund.

ALPS Distributors, Inc.