# EDGAR Filing Document

**Accession Number:** 0001040587
**File Stem:** 0001133228-26-008100
**Filing Date:** 2026-5
**Character Count:** 234998
**Document Hash:** bbf546a73e50917269d3918fc24eb606
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001133228-26-008100.hdr.sgml**: 20260507

**ACCESSION NUMBER**: 0001133228-26-008100

**CONFORMED SUBMISSION TYPE**: N-CSRS

**PUBLIC DOCUMENT COUNT**: 28

**CONFORMED PERIOD OF REPORT**: 20260228

**FILED AS OF DATE**: 20260507

**DATE AS OF CHANGE**: 20260507

**EFFECTIVENESS DATE**: 20260507

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DIREXION FUNDS
- **CENTRAL INDEX KEY:** 0001040587

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** MA
- **FISCAL YEAR END:** 0831

**FILING VALUES:**
- **FORM TYPE:** N-CSRS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-08243
- **FILM NUMBER:** 26951675

**BUSINESS ADDRESS:**
- **STREET 1:** 535 MADISON AVENUE
- **STREET 2:** 37TH FL.
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10022
- **BUSINESS PHONE:** 646-572-3390

**MAIL ADDRESS:**
- **STREET 1:** 535 MADISON AVENUE
- **STREET 2:** 37TH FL.
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10022

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** POTOMAC FUNDS
- **DATE OF NAME CHANGE:** 19970606

## Series and Classes Contracts Data

### Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund (Series ID: S000007025)

| Class ID   | Class Name     | Ticker Symbol   |
|:---|:---|:---|
| C000019202 | Investor Class | DXKLX           |

### Direxion Monthly Small Cap Bull 1.75X Fund (Series ID: S000007044)

| Class ID   | Class Name     | Ticker Symbol   |
|:---|:---|:---|
| C000019221 | Investor Class | DXRLX           |

### Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund (Series ID: S000007050)

| Class ID   | Class Name     | Ticker Symbol   |
|:---|:---|:---|
| C000019229 | Investor Class | DXKSX           |

### Direxion Monthly S&P 500(R) Bull 1.75X Fund (Series ID: S000011950)

| Class ID   | Class Name     | Ticker Symbol   |
|:---|:---|:---|
| C000032626 | Investor Class | DXSLX           |

### Direxion Monthly NASDAQ-100(R) Bull 1.75X Fund (Series ID: S000011960)

| Class ID   | Class Name     | Ticker Symbol   |
|:---|:---|:---|
| C000032646 | Investor Class | DXQLX           |

### HILTON TACTICAL INCOME FUND (Series ID: S000046967)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000146784 | Investor Class      | HCYAX           |
| C000146785 | Institutional Class | HCYIX           |

### DIREXION MONTHLY HIGH YIELD BULL 1.2X FUND (Series ID: S000052787)

| Class ID   | Class Name     | Ticker Symbol   |
|:---|:---|:---|
| C000165828 | Investor Class | DXHYX           |

### Direxion Monthly NASDAQ-100(R) Bull 1.25X Fund (Series ID: S000053315)

| Class ID   | Class Name     | Ticker Symbol   |
|:---|:---|:---|
| C000167765 | Investor Class | DXNLX           |

?xml version='1.0' encoding='ASCII'? 2025-12-30197029_DirexionMonthly7-10YearTreasuryBear175XFund_Investor_TSRSemiAnnual

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

**FORM N-CSR**

**CERTIFIED SHAREHOLDER REPORT OF REGISTERED**

**MANAGEMENT INVESTMENT COMPANIES**

Investment Company Act file number **<u>811-08243</u>**

**<u>Direxion Funds</u>**

(Exact name of registrant as specified in charter)

**<u>535 Madison Avenue, 37<sup>th</sup> Floor</u>**

**<u>New York, NY 10022</u>**

(Address of principal executive offices) (Zip code)

**<u>Direxion Funds</u>**

**<u>535 Madison Avenue, 37<sup>th</sup> Floor</u>**

**<u>New York, NY 10022</u>**

(Name and address of agent for service)

**<u>1-800-851-0511</u>**

Registrant's telephone number, including area code

Date of fiscal year end: **<u>August 31, 2026</u>**

Date of reporting period: **<u>February 28, 2026</u>**

**<u>Item 1. Reports to Stockholders.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** A copy of the reports transmitted to shareholders pursuant to Rule
 30e-1 under the Investment Company Act of 1940, as amended ("Act"), is filed herewith **.** 

---

| | | |
|:---|:---|:---|
| ![image](img134502_202409201524414.jpg) | **Direxion Monthly 7-10 Year Treasury Bear** **1.75X Fund**  | ![image](img134501_n20250410200283.jpg) |
| ![image](img134502_202409201524414.jpg) | Investor \| DXKSX  | ![image](img134501_n20250410200283.jpg) |
| ![image](img134502_202409201524414.jpg) | Semi-Annual Shareholder Report \| February 28, 2026  | ![image](img134501_n20250410200283.jpg) |

---

This semi-annual shareholder report contains important information about the Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund for the period of September 1, 2025 to February 28, 2026. You can find additional information about the Fund at https://connect.rightprospectus.com/Direxion. You can also request this information by contacting us at 866-476-7523.

**WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
|  | **Costs of a $10,000** **investment** | **Costs paid as a percentage of** **a $10,000 investment** **\*** |
| Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund | $66 | 1.35% |

---

\* Percentage shown is annualized.

**KEY FUND STATISTICS** (as of February 28, 2026)

---

| | |
|:---|:---|
| **Net Assets** | $834870 |
| **Number of Holdings** | 4 |
| **Net Advisory Fee** | $0 |
| **Portfolio Turnover** | 0% |

---

**WHAT DID THE FUND INVEST IN?** (as of February 28, 2026)

---

| | |
|:---|:---|
| **Market Exposure** | **(%)** |
|  Total Return Swap Contracts  | -175.0% |
|  Total (as % of net assets)  | -175.0% |
|  "Market Exposure" includes the value of total investments (including the contract value of any derivatives) and excludes any short-term investments.  |  |

---

---

| | |
|:---|:---|
| **Top 10 Constituents of Index** | **(%)** |
|  US 10 Year T-Note, 4.625% 2035-02-15  | 8.9% |
|  US 10 Year T-Note, 4.375% 2034-05-15  | 8.8% |
|  US 10 Year T-Note, 4.250% 2034-11-15  | 8.7% |
|  US 10 Year T-Note, 4.250% 2035-05-15  | 8.7% |
|  US 10 Year T-Note, 4.250% 2035-08-15  | 8.6% |
|  US 10 Year T-Note, 4.000% 2035-11-15  | 8.5% |
|  US 10 Year T-Note, 4.000% 2034-02-15  | 8.5% |
|  US 10 Year T-Note, 4.500% 2033-11-15  | 8.5% |
|  US 10 Year T-Note, 3.875% 2034-08-15  | 8.4% |
|  US 10 Year T-Note, 3.875% 2033-08-15  | 7.6% |

---

For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit https://connect.rightprospectus.com/Direxion.

The Fund is distributed by ALPS Distributors, Inc.

**HOUSEHOLDING**

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Fund documents not be householded, please contact Direxion at 866-476-7523, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Direxion or your financial intermediary.

Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund PAGE 1 TSR-SAR-254939184

------

---

| | | |
|:---|:---|:---|
| ![image](img134502_202409201524414.jpg) | **Direxion Monthly 7-10 Year Treasury Bull** **1.75X Fund**  | ![image](img134501_n20250410200283.jpg) |
| ![image](img134502_202409201524414.jpg) | Investor \| DXKLX  | ![image](img134501_n20250410200283.jpg) |
| ![image](img134502_202409201524414.jpg) | Semi-Annual Shareholder Report \| February 28, 2026  | ![image](img134501_n20250410200283.jpg) |

---

This semi-annual shareholder report contains important information about the Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund for the period of September 1, 2025 to February 28, 2026. You can find additional information about the Fund at https://connect.rightprospectus.com/Direxion. You can also request this information by contacting us at 866-476-7523.

**WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
|  | **Costs of a $10,000** **investment** | **Costs paid as a percentage of** **a $10,000 investment** **\*** |
| Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund | $68 | 1.35% |

---

\* Percentage shown is annualized.

**KEY FUND STATISTICS** (as of February 28, 2026)

---

| | |
|:---|:---|
| **Net Assets** | $4407416 |
| **Number of Holdings** | 5 |
| **Net Advisory Fee** | $47867 |
| **Portfolio Turnover** | 17% |

---

**WHAT DID THE FUND INVEST IN?** (as of February 28, 2026)

---

| | |
|:---|:---|
| **Market Exposure** | **(%)** |
|  Total Return Swap Contracts  | 109.4% |
|  Investment Companies  | 65.6% |
|  Total (as % of net assets)  | 175.0% |
|  "Market Exposure" includes the value of total investments (including the contract value of any derivatives) and excludes any short-term investments.  |  |

---

---

| | |
|:---|:---|
| **Top 10 Constituents of Index** | **(%)** |
|  US 10 Year T-Note, 4.625% 2035-02-15  | 8.9% |
|  US 10 Year T-Note, 4.375% 2034-05-15  | 8.8% |
|  US 10 Year T-Note, 4.250% 2034-11-15  | 8.7% |
|  US 10 Year T-Note, 4.250% 2035-05-15  | 8.7% |
|  US 10 Year T-Note, 4.250% 2035-08-15  | 8.6% |
|  US 10 Year T-Note, 4.000% 2035-11-15  | 8.5% |
|  US 10 Year T-Note, 4.000% 2034-02-15  | 8.5% |
|  US 10 Year T-Note, 4.500% 2033-11-15  | 8.5% |
|  US 10 Year T-Note, 3.875% 2034-08-15  | 8.4% |
|  US 10 Year T-Note, 3.875% 2033-08-15  | 7.6% |

---

For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit https://connect.rightprospectus.com/Direxion.

The Fund is distributed by ALPS Distributors, Inc.

**HOUSEHOLDING**

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Fund documents not be householded, please contact Direxion at 866-476-7523, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Direxion or your financial intermediary.

Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund PAGE 1 TSR-SAR-254939689

------

---

| | | |
|:---|:---|:---|
| ![image](img134502_202409201524414.jpg) | **Direxion Monthly High Yield Bull 1.2X Fund**  | ![image](img134501_n20250410200283.jpg) |
| ![image](img134502_202409201524414.jpg) | Investor \| DXHYX  | ![image](img134501_n20250410200283.jpg) |
| ![image](img134502_202409201524414.jpg) | Semi-Annual Shareholder Report \| February 28, 2026  | ![image](img134501_n20250410200283.jpg) |

---

This semi-annual shareholder report contains important information about the Direxion Monthly High Yield Bull 1.2X Fund for the period of September 1, 2025 to February 28, 2026. You can find additional information about the Fund at https://connect.rightprospectus.com/Direxion. You can also request this information by contacting us at 866-476-7523.

**WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
|  | **Costs of a $10,000** **investment** | **Costs paid as a percentage of** **a $10,000 investment** **\*** |
| Direxion Monthly High Yield Bull 1.2X Fund | $68 | 1.35% |

---

\* Percentage shown is annualized.

**KEY FUND STATISTICS** (as of February 28, 2026)

---

| | |
|:---|:---|
| **Net Assets** | $4286752 |
| **Number of Holdings** | 4 |
| **Net Advisory Fee** | $0 |
| **Portfolio Turnover** | 1,394% |

---

**WHAT DID THE FUND INVEST IN?** (as of February 28, 2026)

---

| | |
|:---|:---|
| **Market Exposure** | **(%)** |
|  Investment Companies  | 79.9% |
|  Total Return Swap Contracts  | 40.1% |
|  Total (as % of net assets)  | 120.0% |
|  "Market Exposure" includes the value of total investments (including the contract value of any derivatives) and excludes any short-term investments.  |  |

---

---

| | |
|:---|:---|
| **Top 10 Constituents of Index** | **(%)** |
|  iShares iBoxx High Yield Corporate Bond ETF  | 33.4% |
|  SPDR Bloomberg High Yield Bond ETF  | 33.3% |
|  PIMCO 0-5 Year High Yield Corporate Bond Index ETF  | 33.3% |

---

For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit https://connect.rightprospectus.com/Direxion.

The Fund is distributed by ALPS Distributors, Inc.

**HOUSEHOLDING**

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Fund documents not be householded, please contact Direxion at 866-476-7523, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Direxion or your financial intermediary.

Direxion Monthly High Yield Bull 1.2X Fund PAGE 1 TSR-SAR-254939127

------

---

| | | |
|:---|:---|:---|
| ![image](img134502_202409201524414.jpg) | **Direxion Monthly NASDAQ-100 Bull 1.25X** **Fund**  | ![image](img134501_n20250410200283.jpg) |
| ![image](img134502_202409201524414.jpg) | Investor \| DXNLX  | ![image](img134501_n20250410200283.jpg) |
| ![image](img134502_202409201524414.jpg) | Semi-Annual Shareholder Report \| February 28, 2026  | ![image](img134501_n20250410200283.jpg) |

---

This semi-annual shareholder report contains important information about the Direxion Monthly NASDAQ-100 Bull 1.25X Fund for the period of September 1, 2025 to February 28, 2026. You can find additional information about the Fund at https://connect.rightprospectus.com/Direxion. You can also request this information by contacting us at 866-476-7523.

**WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
|  | **Costs of a $10,000** **investment** | **Costs paid as a percentage of** **a $10,000 investment** **\*** |
| Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.25X Fund | $59 | 1.15% |

---

\* Percentage shown is annualized.

**KEY FUND STATISTICS** (as of February 28, 2026)

---

| | |
|:---|:---|
| **Net Assets** | $6797150 |
| **Number of Holdings** | 5 |
| **Net Advisory Fee** | $0 |
| **Portfolio Turnover** | 128% |

---

**WHAT DID THE FUND INVEST IN?** (as of February 28, 2026)

---

| | |
|:---|:---|
| **Market Exposure** | **(%)** |
|  Total Return Swap Contracts  | 83.5% |
|  Investment Companies  | 41.5% |
|  Total (as % of net assets)  | 125.0% |
|  "Market Exposure" includes the value of total investments (including the contract value of any derivatives) and excludes any short-term investments.  |  |

---

---

| | |
|:---|:---|
| **Index Composition** | **(%)** |
|  Information Technology  | 49.9% |
|  Communication Services  | 15.7% |
|  Consumer Discretionary  | 12.5% |
|  Consumer Staples  | 8.6% |
|  Health Care  | 5.2% |
|  Industrials  | 4.3% |
|  Utilities  | 1.6% |
|  Materials  | 1.3% |
|  Energy  | 0.6% |
|  Financials  | 0.2% |
|  Real Estate  | 0.1% |

---

---

| | |
|:---|:---|
| **Top 10 Constituents of Index** | **(%)** |
|  NVIDIA Corp.  | 8.4% |
|  Apple, Inc.  | 7.6% |
|  Microsoft Corp.  | 5.7% |
|  Amazon.com, Inc.  | 4.4% |
|  Tesla, Inc.  | 3.9% |
|  Meta Platforms, Inc. Class A  | 3.7% |
|  Alphabet Inc. Class A  | 3.5% |
|  Walmart, Inc.  | 3.4% |
|  Alphabet Inc. Class C  | 3.3% |
|  Broadcom, Inc.  | 2.9% |

---

For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit https://connect.rightprospectus.com/Direxion.

The Fund is distributed by ALPS Distributors, Inc.

Direxion Monthly NASDAQ-100 Bull 1.25X Fund PAGE 1 TSR-SAR-25460D101

------

**HOUSEHOLDING**

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Fund documents not be householded, please contact Direxion at 866-476-7523, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Direxion or your financial intermediary.

Direxion Monthly NASDAQ-100 Bull 1.25X Fund PAGE 2 TSR-SAR-25460D101

------

---

| | | |
|:---|:---|:---|
| ![image](img134502_202409201524414.jpg) | **Direxion Monthly NASDAQ 100 Bull 1.75X** **Fund**  | ![image](img134501_n20250410200283.jpg) |
| ![image](img134502_202409201524414.jpg) | Investor \| DXQLX  | ![image](img134501_n20250410200283.jpg) |
| ![image](img134502_202409201524414.jpg) | Semi-Annual Shareholder Report \| February 28, 2026  | ![image](img134501_n20250410200283.jpg) |

---

This semi-annual shareholder report contains important information about the Direxion Monthly NASDAQ 100 Bull 1.75X Fund for the period of September 1, 2025 to February 28, 2026. You can find additional information about the Fund at https://connect.rightprospectus.com/Direxion. You can also request this information by contacting us at 866-476-7523.

**WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
|  | **Costs of a $10,000** **investment** | **Costs paid as a percentage of** **a $10,000 investment** **\*** |
| Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.75X Fund | $67 | 1.30% |

---

\* Percentage shown is annualized.

**KEY FUND STATISTICS** (as of February 28, 2026)

---

| | |
|:---|:---|
| **Net Assets** | $505643565 |
| **Number of Holdings** | 5 |
| **Net Advisory Fee** | $2046978 |
| **Portfolio Turnover** | 0% |

---

**WHAT DID THE FUND INVEST IN?** (as of February 28, 2026)

---

| | |
|:---|:---|
| **Market Exposure** | **(%)** |
|  Total Return Swap Contracts  | 109.3% |
|  Investment Companies  | 65.7% |
|  Total (as % of net assets)  | 175.0% |
|  "Market Exposure" includes the value of total investments (including the contract value of any derivatives) and excludes any short-term investments.  |  |

---

---

| | |
|:---|:---|
| **Index Composition** | **(%)** |
|  Information Technology  | 49.9% |
|  Communication Services  | 15.7% |
|  Consumer Discretionary  | 12.5% |
|  Consumer Staples  | 8.6% |
|  Health Care  | 5.2% |
|  Industrials  | 4.3% |
|  Utilities  | 1.6% |
|  Materials  | 1.3% |
|  Energy  | 0.6% |
|  Financials  | 0.2% |
|  Real Estate  | 0.1% |

---

---

| | |
|:---|:---|
| **Top 10 Constituents of Index** | **(%)** |
|  NVIDIA Corp.  | 8.4% |
|  Apple, Inc.  | 7.6% |
|  Microsoft Corp.  | 5.7% |
|  Amazon.com, Inc.  | 4.4% |
|  Tesla, Inc.  | 3.9% |
|  Meta Platforms, Inc. Class A  | 3.7% |
|  Alphabet Inc. Class A  | 3.5% |
|  Walmart, Inc.  | 3.4% |
|  Alphabet Inc. Class C  | 3.3% |
|  Broadcom, Inc.  | 2.9% |

---

For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit https://connect.rightprospectus.com/Direxion.

The Fund is distributed by ALPS Distributors, Inc.

Direxion Monthly NASDAQ 100 Bull 1.75X Fund PAGE 1 TSR-SAR-254939200

------

**HOUSEHOLDING**

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Fund documents not be householded, please contact Direxion at 866-476-7523, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Direxion or your financial intermediary.

Direxion Monthly NASDAQ 100 Bull 1.75X Fund PAGE 2 TSR-SAR-254939200

------

---

| | | |
|:---|:---|:---|
| ![image](img134502_202409201524414.jpg) | **Direxion Monthly S&P 500 Bull 1.75X Fund**  | ![image](img134501_n20250410200283.jpg) |
| ![image](img134502_202409201524414.jpg) | Investor \| DXSLX  | ![image](img134501_n20250410200283.jpg) |
| ![image](img134502_202409201524414.jpg) | Semi-Annual Shareholder Report \| February 28, 2026  | ![image](img134501_n20250410200283.jpg) |

---

This semi-annual shareholder report contains important information about the Direxion Monthly S&P 500 Bull 1.75X Fund for the period of September 1, 2025 to February 28, 2026. You can find additional information about the Fund at https://connect.rightprospectus.com/Direxion. You can also request this information by contacting us at 866-476-7523.

**WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
|  | **Costs of a $10,000** **investment** | **Costs paid as a percentage of** **a $10,000 investment** **\*** |
| Direxion Monthly S&P 500<sup>®</sup> Bull 1.75X Fund | $70 | 1.35% |

---

\* Percentage shown is annualized.

**KEY FUND STATISTICS** (as of February 28, 2026)

---

| | |
|:---|:---|
| **Net Assets** | $121238830 |
| **Number of Holdings** | 5 |
| **Net Advisory Fee** | $486085 |
| **Portfolio Turnover** | 0% |

---

**WHAT DID THE FUND INVEST IN?** (as of February 28, 2026)

---

| | |
|:---|:---|
| **Market Exposure** | **(%)** |
|  Total Return Swap Contracts  | 125.2% |
|  Investment Companies  | 49.8% |
|  Total (as % of net assets)  | 175.0% |
|  "Market Exposure" includes the value of total investments (including the contract value of any derivatives) and excludes any short-term investments.  |  |

---

---

| | |
|:---|:---|
| **Index Composition** | **(%)** |
|  Information Technology  | 32.4% |
|  Financials  | 12.5% |
|  Communication Services  | 10.5% |
|  Consumer Discretionary  | 10.0% |
|  Health Care  | 9.9% |
|  Industrials  | 9.2% |
|  Consumer Staples  | 5.4% |
|  Energy  | 3.5% |
|  Utilities  | 2.5% |
|  Materials  | 2.1% |
|  Real Estate  | 2.0% |

---

---

| | |
|:---|:---|
| **Top 10 Constituents of Index** | **(%)** |
|  NVIDIA Corp.  | 7.3% |
|  Apple, Inc.  | 6.6% |
|  Microsoft Corp.  | 5.0% |
|  Amazon.com, Inc.  | 3.5% |
|  Alphabet Inc. Class A  | 3.1% |
|  Broadcom, Inc.  | 2.6% |
|  Alphabet Inc. Class C  | 2.5% |
|  Meta Platforms, Inc. Class A  | 2.4% |
|  Tesla, Inc.  | 1.9% |
|  Berkshire Hathaway Inc. Class B  | 1.6% |

---

For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit https://connect.rightprospectus.com/Direxion.

The Fund is distributed by ALPS Distributors, Inc.

**HOUSEHOLDING**

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Fund documents not be householded, please contact Direxion at 866-476-7523, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Direxion or your financial intermediary.

Direxion Monthly S&P 500 Bull 1.75X Fund PAGE 1 TSR-SAR-254939705

------

---

| | | |
|:---|:---|:---|
| ![image](img134502_202409201524414.jpg) | **Direxion Monthly Small Cap Bull 1.75X** **Fund**  | ![image](img134501_n20250410200283.jpg) |
| ![image](img134502_202409201524414.jpg) | Investor \| DXRLX  | ![image](img134501_n20250410200283.jpg) |
| ![image](img134502_202409201524414.jpg) | Semi-Annual Shareholder Report \| February 28, 2026  | ![image](img134501_n20250410200283.jpg) |

---

This semi-annual shareholder report contains important information about the Direxion Monthly Small Cap Bull 1.75X Fund for the period of September 1, 2025 to February 28, 2026. You can find additional information about the Fund at https://connect.rightprospectus.com/Direxion. You can also request this information by contacting us at 866-476-7523.

**WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
|  | **Costs of a $10,000** **investment** | **Costs paid as a percentage of** **a $10,000 investment** **\*** |
| Direxion Monthly Small Cap Bull 1.75X Fund | $73 | 1.35% |

---

\* Percentage shown is annualized.

**KEY FUND STATISTICS** (as of February 28, 2026)

---

| | |
|:---|:---|
| **Net Assets** | $9227193 |
| **Number of Holdings** | 5 |
| **Net Advisory Fee** | $15213 |
| **Portfolio Turnover** | 41% |

---

**WHAT DID THE FUND INVEST IN?** (as of February 28, 2026)

---

| | |
|:---|:---|
| **Market Exposure** | **(%)** |
|  Total Return Swap Contracts  | 122.2% |
|  Investment Companies  | 52.8% |
|  Total (as % of net assets)  | 175.0% |
|  "Market Exposure" includes the value of total investments (including the contract value of any derivatives) and excludes any short-term investments.  |  |

---

---

| | |
|:---|:---|
| **Index Composition** | **(%)** |
|  Industrials  | 18.8% |
|  Health Care  | 17.4% |
|  Financials  | 16.7% |
|  Information Technology  | 14.3% |
|  Consumer Discretionary  | 8.8% |
|  Energy  | 5.9% |
|  Real Estate  | 5.5% |
|  Materials  | 5.0% |
|  Utilities  | 3.0% |
|  Communication Services  | 2.6% |
|  Consumer Staples  | 2.0% |

---

---

| | |
|:---|:---|
| **Top 10 Constituents of Index** | **(%)** |
|  Bloom Energy Corp.  | 1.1% |
|  Fabrinet  | 0.6% |
|  Coeur Mining, Inc.  | 0.6% |
|  Credo Technology Group Holding Ltd.  | 0.6% |
|  Hecla Mining Co.  | 0.5% |
|  EchoStar Corp.  | 0.5% |
|  Nextpower, Inc.  | 0.5% |
|  Kratos Defense and Security Solutions, Inc.  | 0.5% |
|  IonQ, Inc.  | 0.4% |
|  Sterling Infrastructure, Inc.  | 0.4% |

---

For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit https://connect.rightprospectus.com/Direxion.

The Fund is distributed by ALPS Distributors, Inc.

Direxion Monthly Small Cap Bull 1.75X Fund PAGE 1 TSR-SAR-254939838

------

**HOUSEHOLDING**

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Fund documents not be householded, please contact Direxion at 866-476-7523, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Direxion or your financial intermediary.

Direxion Monthly Small Cap Bull 1.75X Fund PAGE 2 TSR-SAR-254939838

------

---

| | | |
|:---|:---|:---|
| ![image](img134502_202409201524414.jpg) | **Hilton Tactical Income Fund**  | ![image](img134501_n20250410200283.jpg) |
| ![image](img134502_202409201524414.jpg) | Institutional Class \| HCYIX  | ![image](img134501_n20250410200283.jpg) |
| ![image](img134502_202409201524414.jpg) | Semi-Annual Shareholder Report \| February 28, 2026  | ![image](img134501_n20250410200283.jpg) |

---

This semi-annual shareholder report contains important information about the Hilton Tactical Income Fund for the period of September 1, 2025 to February 28, 2026. You can find additional information about the Fund at https://connect.rightprospectus.com/Direxion. You can also request this information by contacting us at 866-476-7523.

**WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
|  | **Costs of a $10,000** **investment** | **Costs paid as a percentage of** **a $10,000 investment** **\*** |
| Hilton Tactical Income Fund Institutional Class | $44 | 0.87% |

---

\* Percentage shown is annualized.

**KEY FUND STATISTICS** (as of February 28, 2026)

---

| | |
|:---|:---|
| **Net Assets** | $136481753 |
| **Number of Holdings** | 103 |
| **Net Advisory Fee** | $356442 |
| **Portfolio Turnover** | 30% |
| **Annualized Distribution Rate\*** | 4.16% |

---

\*A portion of this rate may be considered tax-deferred return of capital and may be subject to capital gains tax.

**WHAT DID THE FUND INVEST IN?** (as of February 28, 2026)

---

| | |
|:---|:---|
| **Top Holdings** | **(%)** |
|  JPMorgan Nasdaq Equity Premium Income ETF  | 5.2% |
|  Vanguard International High Dividend Yield ETF  | 5.2% |
|  iShares MBS ETF  | 4.8% |
|  Vanguard Intermediate-Term Corporate Bond ETF  | 4.4% |
|  JPMorgan Income ETF  | 4.0% |
|  Simplify MBS ETF  | 3.6% |
|  Goldman Sachs S&P 500 Premium Income ETF  | 3.2% |
|  Janus Henderson AAA CLO ETF  | 3.0% |
|  Vanguard Intermediate-Term Treasury ETF  | 2.5% |
|  Alphabet, Inc.  | 2.5% |

---

---

| | |
|:---|:---|
| **Security Type** | **(%)** |
|  Investment Companies  | 44.7% |
|  Common Stocks  | 32.5% |
|  Corporate Bonds  | 18.0% |
|  U.S. Treasury Securities  | 2.1% |
|  Cash & Other  | 2.7% |

---

---

| | |
|:---|:---|
| **Market Exposure** | **(%)** |
|  Equity  | 51.5% |
|  Fixed Income  | 45.8% |
|  Other  | 2.7% |
|  Total (as % of net assets)  | 100.0% |

---

For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit https://connect.rightprospectus.com/Direxion.

The Fund is distributed by ALPS Distributors, Inc.

Hilton Tactical Income Fund PAGE 1 TSR-SAR-254939168

------

**HOUSEHOLDING**

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Fund documents not be householded, please contact Direxion at 866-476-7523, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Direxion or your financial intermediary.

Hilton Tactical Income Fund PAGE 2 TSR-SAR-254939168

------

---

| | | |
|:---|:---|:---|
| ![image](img134502_202409201524414.jpg) | **Hilton Tactical Income Fund**  | ![image](img134501_n20250410200283.jpg) |
| ![image](img134502_202409201524414.jpg) | Investor Class \| HCYAX  | ![image](img134501_n20250410200283.jpg) |
| ![image](img134502_202409201524414.jpg) | Semi-Annual Shareholder Report \| February 28, 2026  | ![image](img134501_n20250410200283.jpg) |

---

This semi-annual shareholder report contains important information about the Hilton Tactical Income Fund for the period of September 1, 2025 to February 28, 2026. You can find additional information about the Fund at https://connect.rightprospectus.com/Direxion. You can also request this information by contacting us at 866-476-7523.

**WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
|  | **Costs of a $10,000** **investment** | **Costs paid as a percentage of** **a $10,000 investment** **\*** |
| Hilton Tactical Income Fund Investor Class | $57 | 1.12% |

---

\* Percentage shown is annualized.

**KEY FUND STATISTICS** (as of February 28, 2026)

---

| | |
|:---|:---|
| **Net Assets** | $136481753 |
| **Number of Holdings** | 103 |
| **Net Advisory Fee** | $356442 |
| **Portfolio Turnover** | 30% |
| **Annualized Distribution Rate\*** | 3.83% |

---

\*A portion of this rate may be considered tax-deferred return of capital and may be subject to capital gains tax.

**WHAT DID THE FUND INVEST IN?** (as of February 28, 2026)

---

| | |
|:---|:---|
| **Top Holdings** | **(%)** |
|  JPMorgan Nasdaq Equity Premium Income ETF  | 5.2% |
|  Vanguard International High Dividend Yield ETF  | 5.2% |
|  iShares MBS ETF  | 4.8% |
|  Vanguard Intermediate-Term Corporate Bond ETF  | 4.4% |
|  JPMorgan Income ETF  | 4.0% |
|  Simplify MBS ETF  | 3.6% |
|  Goldman Sachs S&P 500 Premium Income ETF  | 3.2% |
|  Janus Henderson AAA CLO ETF  | 3.0% |
|  Vanguard Intermediate-Term Treasury ETF  | 2.5% |
|  Alphabet, Inc.  | 2.5% |

---

---

| | |
|:---|:---|
| **Security Type** | **(%)** |
|  Investment Companies  | 44.7% |
|  Common Stocks  | 32.5% |
|  Corporate Bonds  | 18.0% |
|  U.S. Treasury Securities  | 2.1% |
|  Cash & Other  | 2.7% |

---

---

| | |
|:---|:---|
| **Market Exposure** | **(%)** |
|  Equity  | 51.5% |
|  Fixed Income  | 45.8% |
|  Other  | 2.7% |
|  Total (as % of net assets)  | 100.0% |

---

For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit https://connect.rightprospectus.com/Direxion.

The Fund is distributed by ALPS Distributors, Inc.

Hilton Tactical Income Fund PAGE 1 TSR-SAR-254939176

------

**HOUSEHOLDING**

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Fund documents not be householded, please contact Direxion at 866-476-7523, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Direxion or your financial intermediary.

Hilton Tactical Income Fund PAGE 2 TSR-SAR-254939176

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable.

**<u>Item 2. Code of Ethics.</u>**

Not applicable for semi-annual reports.

**<u>Item 3. Audit Committee Financial Expert.</u>**

Not applicable for semi-annual reports.

**<u>Item 4. Principal Accountant Fees and Services.</u>**

Not applicable for semi-annual reports.

**<u>Item 5. Audit Committee of Listed Registrants.</u>**

Not applicable for semi-annual reports.

**<u>Item 6. Investments.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;(a) Schedule of Investments is included within the financial statements
 filed under Item 7(a) of this Form.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable.

**<u>Item 7. Financial Statements and Financial Highlights for Open-End Investment Companies.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The registrant's Financial Statements are filed herewith.

![](direxioncover_23604.jpg)

------

**Table of Contents** 

---

| | |
|:---|:---|
|  | **Page**  |
| [Schedules of Investments](#soi) | &nbsp;&nbsp; [1](#soi) |
| [Statements of Assets and Liabilities](#sal) | &nbsp;&nbsp; [8](#sal) |
| [Statements of Operations](#sop) | &nbsp;&nbsp; [10](#sop) |
| [Statements of Changes in Net Assets](#scna) | &nbsp;&nbsp; [12](#scna) |
| [Financial Highlights](#fihi) | &nbsp;&nbsp; [16](#fihi) |
| [Notes to the Financial Statements](#notes) | &nbsp;&nbsp; [18](#notes) |
| [Additional Information](#add) | &nbsp;&nbsp; [30](#add) |
| [Form N-CSR Items](#ncsr) | &nbsp;&nbsp; [31](#ncsr) |

---

------

**[**TABLE OF CONTENTS**](#TOC)**

**DIREXION MONTHLY 7-10 YEAR TREASURY BEAR 1.75X FUND** 

**Schedule of Investments** 

**February 28, 2026 (Unaudited)** 

---

| | | |
|:---|:---|:---|
| **Shares** |  | **Fair Value**  |
|  | **SHORT TERM INVESTMENTS — 37.1%**<br>|  |
|  | **Money Market Funds — 37.1%**<br>|  |
| 240000 | Goldman Sachs Financial Square Treasury Instruments Fund Institutional Shares, <br>3.55%<sup>(a)(b)</sup> | $240000  |
| 70000 | Invesco Government & Agency Portfolio Institutional Shares, 3.60%<sup>(a)(b)</sup> | 70000  |
|  | &nbsp;&nbsp;&nbsp; **TOTAL SHORT TERM INVESTMENTS** <br>**(Cost $310,000)** | $310000  |
|  | &nbsp;&nbsp;&nbsp; **TOTAL INVESTMENTS** <br>**(Cost $310,000) — 37.1%** | $310000  |
|  | Other Assets in Excess of Liabilities — 62.9% | 524870  |
|  | **TOTAL NET ASSETS — 100.0%** | $834870 |

---

Percentages are stated as a percent of net assets.

The geographic location of all investments is United States unless otherwise indicated.

<sup>(a)</sup> Represents annualized seven-day yield at February 28, 2026.

<sup>(b)</sup> All or a portion of these securities have been segregated as collateral for swap contracts. Total value of securities segregated amounted to $310,000. 

**SHORT TOTAL RETURN SWAP CONTRACTS** 

**February 28, 2026 (Unaudited)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Terms of Payments to be** <br>**Received at Termination** | **Terms of Payments to be** <br>**Paid at Termination** | **Counterparty** | **Termination** <br>**Date** | **Contracts** | **Notional** <br>**Amount** | **Unrealized** <br>**Depreciation**  |
| SOFR + 0.60% | &nbsp;&nbsp;&nbsp; Total return of iShares <br>7-10 Year Treasury <br>Bond ETF | &nbsp;&nbsp;&nbsp; Bank of America <br>Merrill Lynch | 12/11/2026 | &nbsp;&nbsp; 14073 | $1371091 | &nbsp;&nbsp;&nbsp; $(7409)  |
| SOFR + 0.05% | &nbsp;&nbsp;&nbsp; Total return of iShares <br>7-10 Year Treasury <br>Bond ETF | UBS Securities LLC | 12/17/2026 | &nbsp;&nbsp; 833 | 80300 | &nbsp;&nbsp;&nbsp; (1222)  |
|  |  |  |  |  | $1451391 | &nbsp;&nbsp;&nbsp; $(8631) |

---

SOFR - Secured Overnight Financing Rate was 3.68% as of February 28, 2026.

The accompanying notes are an integral part of these financial statements.

1<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**DIREXION MONTHLY 7-10 YEAR TREASURY BULL 1.75X FUND** 

**Schedule of Investments** 

**February 28, 2026 (Unaudited)** 

---

| | | |
|:---|:---|:---|
| **Shares**<br>|  | **Fair Value**  |
|  | **INVESTMENT COMPANIES — 65.6%**<br>|  |
| 29495 | iShares 7-10 Year Treasury Bond ETF<sup>(a)</sup> | $2890215  |
|  | &nbsp;&nbsp;&nbsp; **TOTAL INVESTMENT COMPANIES**<br>**(Cost $2,763,159)** | $2890215  |
|  | **SHORT TERM INVESTMENTS — 30.2%**<br>|  |
|  | **Money Market Funds — 30.2%**<br>|  |
| 1200000 | Goldman Sachs Financial Square Treasury Instruments Fund Institutional Shares, <br>3.55%<sup>(b)(c)</sup> | $1200000  |
| 131472 | Invesco Government & Agency Portfolio Institutional Shares, 3.60%<sup>(b)(c)</sup> | 131472  |
|  | &nbsp;&nbsp;&nbsp; **TOTAL SHORT TERM INVESTMENTS** <br>**(Cost $1,331,472)** | $1331472  |
|  | &nbsp;&nbsp;&nbsp; **TOTAL INVESTMENTS** <br>**(Cost $4,094,631) — 95.8%** | $4221687  |
|  | Other Assets in Excess of Liabilities — 4.2% | 185729  |
|  | **TOTAL NET ASSETS — 100.0%** | $4407416 |

---

Percentages are stated as a percent of net assets.

The geographic location of all investments is United States unless otherwise indicated.

<sup>(a)</sup> Shareholders may obtain the financial statements of these investment companies at www.sec.gov.

<sup>(b)</sup> Represents annualized seven-day yield at February 28, 2026.

<sup>(c)</sup> All or a portion of these securities have been segregated as collateral for swap contracts. Total value of securities segregated amounted to $1,331,472. 

**LONG TOTAL RETURN SWAP CONTRACTS** 

**February 28, 2026 (Unaudited)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Terms of Payments to be Received at Termination** | **Terms of Payments to be** <br>**Paid at Termination** | **Counterparty** | **Termination** <br>**Date** | **Contracts** | **Notional** <br>**Amount** | **Unrealized** <br>**Appreciation**  |
| &nbsp;&nbsp;&nbsp; Total return of iShares 7-10 <br>Year Treasury Bond ETF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SOFR + 0.80% | &nbsp;&nbsp;&nbsp; Bank of America Merrill<br>Lynch | 12/11/2026 | &nbsp;&nbsp; 55714 | $5386046 | &nbsp;&nbsp;&nbsp; $65131  |
| &nbsp;&nbsp;&nbsp; Total return of iShares 7-10 <br>Year Treasury Bond ETF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SOFR + 0.73% | UBS Securities LLC | 12/17/2026 | &nbsp;&nbsp; 10835 | 1038201 | &nbsp;&nbsp;&nbsp; 22090  |
|  |  |  |  |  | $6424247 | &nbsp;&nbsp;&nbsp; $87221 |

---

SOFR - Secured Overnight Financing Rate was 3.68% as of February 28, 2026.

The accompanying notes are an integral part of these financial statements.

2<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**DIREXION MONTHLY HIGH YIELD BULL 1.2X FUND** 

**Schedule of Investments** 

**February 28, 2026 (Unaudited)** 

---

| | | |
|:---|:---|:---|
| **Shares**<br>|  | **Fair Value**  |
|  | **INVESTMENT COMPANIES — 79.9%**<br>|  |
| 21212 | iShares iBoxx USD High Yield Corporate Bond ETF<sup>(a)</sup> | $1712233  |
| 17604 | State Street SPDR Bloomberg High Yield Bond ETF<sup>(a)</sup> | 1711989  |
|  | &nbsp;&nbsp;&nbsp; **TOTAL INVESTMENT COMPANIES** <br>**(Cost $3,295,261)** | $3424222  |
|  | **SHORT TERM INVESTMENTS — 10.0%**<br>|  |
|  | **Money Market Funds — 10.0%**<br>|  |
| 430000 | Invesco Government & Agency Portfolio Institutional Shares, 3.60%<sup>(b)(c)</sup> | $430000  |
|  | &nbsp;&nbsp;&nbsp; **TOTAL SHORT TERM INVESTMENTS** <br>**(Cost $430,000)** | $430000  |
|  | &nbsp;&nbsp;&nbsp; **TOTAL INVESTMENTS**<br>**(Cost $3,725,261) — 89.9%** | $3854222  |
|  | Other Assets in Excess of Liabilities — 10.1% | 432530  |
|  | **TOTAL NET ASSETS — 100.0%** | $4286752 |

---

Percentages are stated as a percent of net assets.

The geographic location of all investments is United States unless otherwise indicated.

<sup>(a)</sup> Shareholders may obtain the financial statements of these investment companies at www.sec.gov.

<sup>(b)</sup> Represents annualized seven-day yield at February 28, 2026.

<sup>(c)</sup> All or a portion of these securities have been segregated as collateral for swap contracts. Total value of securities segregated amounted to $430,000. 

**LONG TOTAL RETURN SWAP CONTRACTS** 

**February 28, 2026 (Unaudited)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Terms of Payments to be** <br>**Received at Termination** | **Terms of Payments to be** <br>**Paid at Termination** | **Counterparty** | **Termination** <br>**Date** | **Contracts** | **Notional** <br>**Amount** | **Unrealized** <br>**Appreciation** <br>(Depreciation)  |
|  Total return of PIMCO 0-5 Year High Yield Corporate Bond Index ETF | SOFR + 0.70% | UBS Securities LLC | 12/17/2026 | &nbsp;&nbsp; 18133  | $1712559 | &nbsp;&nbsp;&nbsp;&nbsp; $(4284) |

---

SOFR - Secured Overnight Financing Rate was 3.68% as of February 28, 2026.

The accompanying notes are an integral part of these financial statements.

3<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**DIREXION MONTHLY NASDAQ-100<sup>®</sup> BULL 1.25X FUND** 

**Schedule of Investments** 

**February 28, 2026 (Unaudited)** 

---

| | | |
|:---|:---|:---|
| **Shares**<br>|  | **Fair Value**  |
|  | **INVESTMENT COMPANIES — 41.5%**<br>|  |
| 4645 | Invesco QQQ Trust Series 1<sup>(a)</sup> | $2820862  |
|  | &nbsp;&nbsp;&nbsp; **TOTAL INVESTMENT COMPANIES** <br>**(Cost $1,791,676)** | $2820862  |
|  | **SHORT TERM INVESTMENTS — 19.8%**<br>|  |
|  | **Money Market Funds — 19.8%**<br>|  |
| 1194081 | Goldman Sachs Financial Square Treasury Instruments Fund Institutional Shares, 3.55%<sup>(b)(c)</sup> | $1194081  |
| 150000 | Invesco Government & Agency Portfolio Institutional Shares, 3.60%<sup>(b)(c)</sup> | 150000  |
|  | &nbsp;&nbsp;&nbsp; **TOTAL SHORT TERM INVESTMENTS** <br>**(Cost $1,344,081)** | $1344081  |
|  | &nbsp;&nbsp;&nbsp; **TOTAL INVESTMENTS** <br>**(Cost $3,135,757) — 61.3%** | $4164943  |
|  | Other Assets in Excess of Liabilities — 38.7% | 2632207  |
|  | **TOTAL NET ASSETS — 100.0%** | $6797150 |

---

Percentages are stated as a percent of net assets.

The geographic location of all investments is United States unless otherwise indicated.

<sup>(a)</sup> Shareholders may obtain the financial statements of these investment companies at www.sec.gov.

<sup>(b)</sup> Represents annualized seven-day yield at February 28, 2026.

<sup>(c)</sup> All or a portion of these securities have been segregated as collateral for swap contracts. Total value of securities segregated amounted to $1,344,081. 

**LONG TOTAL RETURN SWAP CONTRACTS** 

**February 28, 2026 (Unaudited)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Terms of Payments to be** <br>**Received at Termination** | **Terms of Payments to be** <br>**Paid at Termination** | **Counterparty** | **Termination** <br>**Date** | **Contracts** | **Notional** <br>**Amount** | **Unrealized** <br>**Appreciation**  |
|  Total return of NASDAQ-100<sup>®</sup> Index | SOFR + 0.80% | Bank of America Merrill Lynch | 12/11/2026 | &nbsp;&nbsp;&nbsp;&nbsp; 182 | $4527155 | &nbsp;&nbsp;&nbsp; $8839  |
|  Total return of NASDAQ-100<sup>®</sup> Index | SOFR + 0.65% | UBS Securities LLC | 12/17/2026 | &nbsp;&nbsp;&nbsp;&nbsp; 45 | 1109142 | &nbsp;&nbsp;&nbsp; 5540  |
|  |  |  |  |  | $5636297 | &nbsp;&nbsp;&nbsp; $14379 |

---

SOFR - Secured Overnight Financing Rate was 3.68% as of February 28, 2026.

The accompanying notes are an integral part of these financial statements.

4<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**DIREXION MONTHLY NASDAQ-100<sup>®</sup> BULL 1.75X FUND** 

**Schedule of Investments** 

**February 28, 2026 (Unaudited)** 

---

| | | |
|:---|:---|:---|
| **Shares**<br>|  | **Fair Value**  |
|  | **INVESTMENT COMPANIES — 65.7%**<br>|  |
| 546645 | Invesco QQQ Trust Series 1<sup>(a)</sup> | $331972042  |
|  | &nbsp;&nbsp;&nbsp; **TOTAL INVESTMENT COMPANIES** <br>**(Cost $188,359,452)** | $331972042  |
|  | **SHORT TERM INVESTMENTS — 20.2%**<br>|  |
|  | **Money Market Funds — 20.2%**<br>|  |
| 55371830 | Goldman Sachs Financial Square Treasury Instruments Fund Institutional Shares, 3.55%<sup>(b)(c)</sup> | $55371830  |
| 46920000 | Invesco Government & Agency Portfolio Institutional Shares, 3.60%<sup>(b)(c)</sup> | 46920000  |
|  | &nbsp;&nbsp;&nbsp; **TOTAL SHORT TERM INVESTMENTS** <br>**(Cost $102,291,830)** | $102291830  |
|  | &nbsp;&nbsp;&nbsp; **TOTAL INVESTMENTS** <br>**(Cost $290,651,282) — 85.9%** | $434263872  |
|  | Other Assets in Excess of Liabilities — 14.1% | 71379693  |
|  | **TOTAL NET ASSETS — 100.0%** | $505643565 |

---

Percentages are stated as a percent of net assets.

The geographic location of all investments is United States unless otherwise indicated.

<sup>(a)</sup> Shareholders may obtain the financial statements of these investment companies at www.sec.gov.

<sup>(b)</sup> Represents annualized seven-day yield at February 28, 2026.

<sup>(c)</sup> All or a portion of these securities have been segregated as collateral for swap contracts. Total value of securities segregated amounted to $102,291,830. 

**LONG TOTAL RETURN SWAP CONTRACTS** 

**February 28, 2026 (Unaudited)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Terms of Payments to be Received at Termination** | **Terms of Payments to be** <br>**Paid at Termination** | **Counterparty** | **Termination** <br>**Date** | **Contracts** | **Notional** <br>**Amount** | **Unrealized** <br>**Appreciation** <br>(Depreciation)  |
|  Total return of NASDAQ-100<sup>®</sup> Index | SOFR + 0.80% | Bank of America Merrill Lynch | 12/11/2026 | &nbsp;&nbsp; 8744 | $224412946 | &nbsp;&nbsp; $(8028967)  |
|  Total return of NASDAQ-100<sup>®</sup> Index | SOFR + 0.65% | UBS Securities LLC | 12/17/2026 | &nbsp;&nbsp; 13418 | 330721631 | &nbsp;&nbsp; 1651419  |
|  |  |  |  |  | $555134577 | &nbsp;&nbsp; $(6377548) |

---

SOFR - Secured Overnight Financing Rate was 3.68% as of February 28, 2026.

The accompanying notes are an integral part of these financial statements.

5<br>

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**[**TABLE OF CONTENTS**](#TOC)**

**DIREXION MONTHLY S&P 500<sup>®</sup> BULL 1.75X FUND** 

**Schedule of Investments** 

**February 28, 2026 (Unaudited)** 

---

| | | |
|:---|:---|:---|
| **Shares**<br>|  | **Fair Value**  |
|  | **INVESTMENT COMPANIES — 49.8%**<br>|  |
| 87516 | iShares Core S&P 500 ETF <sup>(a)</sup> | $60331780  |
|  | &nbsp;&nbsp;&nbsp; **TOTAL INVESTMENT COMPANIES** <br>**(Cost $33,891,889)** | $60331780  |
|  | **SHORT TERM INVESTMENTS — 20.6%**<br>|  |
|  | **Money Market Funds — 20.6%**<br>|  |
| 15370000 | Goldman Sachs Financial Square Treasury Instruments Fund Institutional Shares, 3.55%<sup>(b)(c)</sup> | $15370000  |
| 9650000 | Invesco Government & Agency Portfolio Institutional Shares, 3.60%<sup>(b)(c)</sup> | 9650000  |
|  | &nbsp;&nbsp;&nbsp; **TOTAL SHORT TERM INVESTMENTS** <br>**(Cost $25,020,000)** | $25020000  |
|  | &nbsp;&nbsp;&nbsp; **TOTAL INVESTMENTS** <br>**(Cost $58,911,889) — 70.4%** | $85351780  |
|  | Other Assets in Excess of Liabilities — 29.6% | 35887050  |
|  | **TOTAL NET ASSETS — 100.0%** | $121238830 |

---

Percentages are stated as a percent of net assets.

The geographic location of all investments is United States unless otherwise indicated.

<sup>(a)</sup> Shareholders may obtain the financial statements of these investment companies at www.sec.gov.

<sup>(b)</sup> Represents annualized seven-day yield at February 28, 2026.

<sup>(c)</sup> All or a portion of these securities have been segregated as collateral for swap contracts. Total value of securities segregated amounted to $25,020,000. 

**LONG TOTAL RETURN SWAP CONTRACTS** 

**February 28, 2026 (Unaudited)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Terms of Payments to be Received at Termination** | **Terms of Payments to be** <br>**Paid at Termination** | **Counterparty** | **Termination** <br>**Date** | **Contracts** | **Notional** <br>**Amount** | **Unrealized** <br>**Appreciation** <br>(Depreciation)  |
|  Total return of S&P 500<sup>®</sup> Index | SOFR + 0.70% | Bank of America Merrill Lynch | 12/11/2026 | &nbsp;&nbsp; 10682 | $73652445 | &nbsp;&nbsp; $(680094)  |
|  Total return of S&P 500<sup>®</sup> Index | SOFR + 0.75% | UBS Securities LLC | 12/17/2026 | &nbsp;&nbsp; 11153 | 74964109 | &nbsp;&nbsp; 1253965  |
|  |  |  |  |  | $148616554 | &nbsp;&nbsp; $573871 |

---

SOFR - Secured Overnight Financing Rate was 3.68% as of February 28, 2026.

The accompanying notes are an integral part of these financial statements.

6<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**DIREXION MONTHLY SMALL CAP BULL 1.75X FUND** 

**Schedule of Investments** 

**February 28, 2026 (Unaudited)** 

---

| | | |
|:---|:---|:---|
| **Shares** <br>|  | **Fair Value**  |
|  | **INVESTMENT COMPANIES — 52.8%**<br>|  |
| 18624 | iShares Russell 2000 ETF<sup>(a)</sup> | $4868500  |
|  | &nbsp;&nbsp;&nbsp; **TOTAL INVESTMENT COMPANIES**<br>**(Cost $3,352,098)** | $4868500  |
|  | **SHORT TERM INVESTMENTS — 16.7%**<br>|  |
|  | **Money Market Funds — 16.7%**<br>|  |
| 979749 | Goldman Sachs Financial Square Treasury Instruments Fund Institutional Shares, 3.55%<sup>(b)(c)</sup> | $979749  |
| 560000 | Invesco Government & Agency Portfolio Institutional Shares, 3.60%<sup>(b)(c)</sup> | 560000  |
|  | &nbsp;&nbsp;&nbsp; **TOTAL SHORT TERM INVESTMENTS** <br>**(Cost $1,539,749)** | $1539749  |
|  | &nbsp;&nbsp;&nbsp; **TOTAL INVESTMENTS** <br>**(Cost $4,891,847) — 69.5%** | $6408249  |
|  | Other Assets in Excess of Liabilities — 30.5% | 2818944  |
|  | **TOTAL NET ASSETS — 100.0%** | $9227193 |

---

Percentages are stated as a percent of net assets.

The geographic location of all investments is United States unless otherwise indicated.

<sup>(a)</sup> Shareholders may obtain the financial statements of these investment companies at www.sec.gov.

<sup>(b)</sup> Represents annualized seven-day yield at February 28, 2026.

<sup>(c)</sup> All or a portion of these securities have been segregated as collateral for swap contracts. Total value of securities segregated amounted to $1,539,749. 

**LONG TOTAL RETURN SWAP CONTRACTS** 

**February 28, 2026 (Unaudited)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Terms of Payments to be Received at Termination** | **Terms of Payments to be** <br>**Paid at Termination** | **Counterparty** | **Termination** <br>**Date** | **Contracts** | **Notional** <br>**Amount** | **Unrealized** <br>**Appreciation**  |
|  Total return of Russell 2000<sup>®</sup> Index | SOFR + 0.65% | Bank of America Merrill Lynch | 12/11/2026 | &nbsp;&nbsp;&nbsp; 1857 | $4806749 | &nbsp;&nbsp; $51842  |
|  Total return of Russell 2000<sup>®</sup> Index | SOFR + 0.55% | UBS Securities LLC | 12/17/2026 | &nbsp;&nbsp;&nbsp; 2430 | 6074572 | &nbsp;&nbsp; 284493  |
|  |  |  |  |  | $10881321 | &nbsp;&nbsp; $336335 |

---

SOFR - Secured Overnight Financing Rate was 3.68% as of February 28, 2026.

The accompanying notes are an integral part of these financial statements.

7<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**Direxion Funds** 

**Statements of Assets and Liabilities** 

**February 28, 2026 (Unaudited)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Direxion Monthly** <br>**7-10 Year Treasury** <br>**Bear 1.75X Fund** | **Direxion Monthly** <br>**7-10 Year Treasury** <br>**Bull 1.75X Fund** | **Direxion Monthly** <br>**High Yield Bull** <br>**1.2X Fund** | **Direxion Monthly** <br>**NASDAQ-100** <br>**Bull 1.25X Fund** | **Direxion Monthly** <br>**NASDAQ-100** <br>**Bull 1.75X Fund**  |
| **ASSETS:**<br>|  |  |  |  |  |
|  Investments, at fair value (Note 2) | &nbsp;&nbsp; $310000 | &nbsp;&nbsp;&nbsp; $4221687 | &nbsp;&nbsp; $3854222 | &nbsp;&nbsp;&nbsp; $4164943 | $434263872  |
| Cash equivalents (Note 2) | &nbsp;&nbsp; 535462 | &nbsp;&nbsp;&nbsp; 1159938 | &nbsp;&nbsp; 990363 | &nbsp;&nbsp;&nbsp; 3661684 | 79880001  |
| Interest receivable | &nbsp;&nbsp; 4655 | &nbsp;&nbsp;&nbsp; 2799 | &nbsp;&nbsp; 2370 | &nbsp;&nbsp;&nbsp; 10702 | 212056  |
| Dividends receivable | &nbsp;&nbsp; 4052 | &nbsp;&nbsp;&nbsp; 2579 | &nbsp;&nbsp; 1143 | &nbsp;&nbsp;&nbsp; 4387 | 287671  |
| &nbsp;&nbsp;&nbsp; Due from Adviser, net <br>(Note 5) | &nbsp;&nbsp; 1074 | &nbsp;&nbsp;&nbsp; 2383 | &nbsp;&nbsp; 2967 | &nbsp;&nbsp;&nbsp; 843 | —  |
| Receivable for investments sold | &nbsp;&nbsp; 159 | &nbsp;&nbsp;&nbsp; 1290 | &nbsp;&nbsp; 2298214 | &nbsp;&nbsp;&nbsp; — | —  |
| Receivable for Fund shares sold | &nbsp;&nbsp; 10 | &nbsp;&nbsp;&nbsp; 50 | &nbsp;&nbsp; 27364 | &nbsp;&nbsp;&nbsp; 3138 | 130155  |
|  Unrealized appreciation on swap contracts | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; 87221 | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; 14379 | 1651419  |
| &nbsp;&nbsp;&nbsp; Prepaid expenses and other <br>assets | &nbsp;&nbsp; 5441 | &nbsp;&nbsp;&nbsp; 21864 | &nbsp;&nbsp; 38767 | &nbsp;&nbsp;&nbsp; 35235 | 9703  |
| &nbsp;&nbsp;&nbsp; **Total assets** | &nbsp;&nbsp; 860853 | &nbsp;&nbsp;&nbsp; 5499811 | &nbsp;&nbsp; 7215410 | &nbsp;&nbsp;&nbsp; 7895311 | 516434877  |
| **LIABILITIES:**<br>|  |  |  |  |  |
|  Unrealized depreciation on swap contracts | &nbsp;&nbsp; 8631 | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp; 4284 | &nbsp;&nbsp;&nbsp; — | 8028967  |
|  Payable for investments purchased | &nbsp;&nbsp; 1255 | &nbsp;&nbsp;&nbsp; 212 | &nbsp;&nbsp; 5851 | &nbsp;&nbsp;&nbsp; 16555 | 702715  |
| Payable for distribution fees | &nbsp;&nbsp; 632 | &nbsp;&nbsp;&nbsp; 802 | &nbsp;&nbsp; 1333 | &nbsp;&nbsp;&nbsp; 1647 | 98297  |
|  Payable for Fund shares redeemed | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; 1064392 | &nbsp;&nbsp; 2893753 | &nbsp;&nbsp;&nbsp; 1067888 | 1171291  |
| Due to Adviser, net (Note 5) | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | 294893  |
|  Payable for expenses and other liabilities | &nbsp;&nbsp; 15465 | &nbsp;&nbsp;&nbsp; 26989 | &nbsp;&nbsp; 23437 | &nbsp;&nbsp;&nbsp; 12071 | 495149  |
| &nbsp;&nbsp;&nbsp; **Total liabilities** | &nbsp;&nbsp; 25983 | &nbsp;&nbsp;&nbsp; 1092395 | &nbsp;&nbsp; 2928658 | &nbsp;&nbsp;&nbsp; 1098161 | 10791312  |
| **NET ASSETS** | &nbsp;&nbsp; $834870 | &nbsp;&nbsp;&nbsp; $4407416 | &nbsp;&nbsp; $4286752 | &nbsp;&nbsp;&nbsp; $6797150 | $505643565  |
| **Net Assets Consists of:**<br>|  |  |  |  |  |
| Paid-in capital | &nbsp;&nbsp; $19502264 | &nbsp;&nbsp;&nbsp; $11520563 | &nbsp;&nbsp; $38001785 | &nbsp;&nbsp;&nbsp; $8705002 | $327231030  |
| &nbsp;&nbsp;&nbsp; Total distributable earnings/<br>(accumulated losses) | &nbsp;&nbsp; (18667394) | &nbsp;&nbsp;&nbsp; (7113147) | &nbsp;&nbsp; (33715033) | &nbsp;&nbsp;&nbsp; (1907852) | 178412535  |
| Total net assets | &nbsp;&nbsp; $834870 | &nbsp;&nbsp;&nbsp; $4407416 | &nbsp;&nbsp; $4286752 | &nbsp;&nbsp;&nbsp; $6797150 | $505643565  |
| **Investor**<br>|  |  |  |  |  |
| Net assets | &nbsp;&nbsp; $834870 | &nbsp;&nbsp;&nbsp; $4407416 | &nbsp;&nbsp; $4286752 | &nbsp;&nbsp;&nbsp; $6797150 | $505643565  |
| Shares issued and outstanding<sup>(a)</sup> | &nbsp;&nbsp; 34434 | &nbsp;&nbsp;&nbsp; 200006 | &nbsp;&nbsp; 242421 | &nbsp;&nbsp;&nbsp; 72526 | 5020957  |
| Net asset value per share | &nbsp;&nbsp; $24.25 | &nbsp;&nbsp;&nbsp; $22.04 | &nbsp;&nbsp; $17.68 | &nbsp;&nbsp;&nbsp; $93.72 | $100.71  |
| **Cost:**<br>|  |  |  |  |  |
| Investments, at cost | &nbsp;&nbsp; $310000 | &nbsp;&nbsp;&nbsp; $4094631 | &nbsp;&nbsp; $3725261 | &nbsp;&nbsp;&nbsp; $3135757 | $290651282 |

---

<sup>(a)</sup> Unlimited shares authorized without par value.

The accompanying notes are an integral part of these financial statements.

8<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**Direxion Funds** 

**Statements of Assets and Liabilities** 

**February 28, 2026 (Unaudited)(Continued)** 

---

| | | |
|:---|:---|:---|
|  | **Direxion Monthly** <br>**S&P 500 Bull** <br>**1.75X Fund** | **Direxion Monthly** <br>**Small Cap Bull** <br>**1.75X Fund**  |
| **ASSETS:**<br>|  |  |
| Investments, at fair value (Note 2) | $85351780 | &nbsp;&nbsp; $6408249  |
| Cash equivalents (Note 2) | 34329211 | &nbsp;&nbsp; 2590584  |
| Unrealized appreciation on swap contracts | 1253965 | &nbsp;&nbsp; 336335  |
| Receivable for Fund shares sold | 1078393 | &nbsp;&nbsp; 19023  |
| Interest receivable | 92235 | &nbsp;&nbsp; 6710  |
| Dividends receivable | 72117 | &nbsp;&nbsp; 4517  |
| Due from broker for swap contracts |  | &nbsp;&nbsp; 406  |
| Prepaid expenses and other assets | 15124 | &nbsp;&nbsp; 20603  |
| &nbsp;&nbsp;&nbsp; **Total assets** | 122192825 | &nbsp;&nbsp; 9386427  |
| **LIABILITIES:**<br>|  |  |
| Unrealized depreciation on swap contracts | 680094 | &nbsp;&nbsp; —  |
| Due to Adviser, net (Note 5) | 73557 | &nbsp;&nbsp; 2815  |
| Payable for Fund shares redeemed | 46279 | &nbsp;&nbsp; —  |
| Payable for distribution fees | 23623 | &nbsp;&nbsp; 1817  |
| Payable for investments purchased | 15584 | &nbsp;&nbsp; —  |
| Deposits from broker for swap contracts |  | &nbsp;&nbsp; 140000  |
| Payable for expenses and other liabilities | 114858 | &nbsp;&nbsp; 14602  |
| &nbsp;&nbsp;&nbsp; **Total liabilities** | 953995 | &nbsp;&nbsp; 159234  |
| **NET ASSETS** | $121238830 | &nbsp;&nbsp; $9227193  |
| **Net Assets Consists of:**<br>|  |  |
| Paid-in capital | $83310581 | &nbsp;&nbsp; $16116788  |
| Total distributable earnings/(accumulated losses) | 37928249 | &nbsp;&nbsp; (6889595)  |
| Total net assets | $121238830 | &nbsp;&nbsp; $9227193  |
| **Investor**<br>|  |  |
| Net assets | $121238830 | &nbsp;&nbsp; $9227193  |
| Shares issued and outstanding<sup>(a)</sup> | 1591293 | &nbsp;&nbsp; 88040  |
| Net asset value per share | $76.19 | &nbsp;&nbsp; $104.81  |
| **Cost:**<br>|  |  |
| Investments, at cost | $58911889 | &nbsp;&nbsp; $4891847 |

---

<sup>(a)</sup> Unlimited shares authorized without par value.

The accompanying notes are an integral part of these financial statements.

9<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**Direxion Funds** 

**Statements of Operations** 

**For the Period Ended February 28, 2026 (Unaudited)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Direxion Monthly** <br>**7-10 Year Treasury** <br>**Bear 1.75X Fund** | **Direxion Monthly** <br>**7-10 Year Treasury** <br>**Bull 1.75X Fund** | **Direxion Monthly** <br>**High Yield Bull** <br>**1.2X Fund** | **Direxion Monthly** <br>**NASDAQ-100** <br>**Bull 1.25X Fund** | **Direxion Monthly** <br>**NASDAQ-100** <br>**Bull 1.75X Fund**  |
| **INVESTMENT INCOME:**<br>|  |  |  |  |  |
| Dividend income | &nbsp;&nbsp;&nbsp;&nbsp; $9321 | &nbsp;&nbsp;&nbsp;&nbsp; $237357 | &nbsp;&nbsp;&nbsp;&nbsp; $165843 | &nbsp;&nbsp;&nbsp; $31194 | &nbsp;&nbsp; $2369164  |
| Interest income | &nbsp;&nbsp;&nbsp;&nbsp; 10651 | &nbsp;&nbsp;&nbsp;&nbsp; 91664 | &nbsp;&nbsp;&nbsp;&nbsp; 21505 | &nbsp;&nbsp;&nbsp; 52388 | &nbsp;&nbsp; 2101183  |
| &nbsp;&nbsp;&nbsp; **Total investment income** | &nbsp;&nbsp;&nbsp;&nbsp; 19972 | &nbsp;&nbsp;&nbsp;&nbsp; 329021 | &nbsp;&nbsp;&nbsp;&nbsp; 187348 | &nbsp;&nbsp;&nbsp; 83582 | &nbsp;&nbsp; 4470347  |
| **EXPENSES:**<br>|  |  |  |  |  |
| State registration fees | &nbsp;&nbsp;&nbsp;&nbsp; 13016 | &nbsp;&nbsp;&nbsp;&nbsp; 16253 | &nbsp;&nbsp;&nbsp;&nbsp; 45530 | &nbsp;&nbsp;&nbsp; 28602 | &nbsp;&nbsp; 19207  |
| Audit fees | &nbsp;&nbsp;&nbsp;&nbsp; 5203 | &nbsp;&nbsp;&nbsp;&nbsp; 5851 | &nbsp;&nbsp;&nbsp;&nbsp; 7277 | &nbsp;&nbsp;&nbsp; 5595 | &nbsp;&nbsp; 44590  |
| Investment advisory fee (Note 5) | &nbsp;&nbsp;&nbsp;&nbsp; 4155 | &nbsp;&nbsp;&nbsp;&nbsp; 63717 | &nbsp;&nbsp;&nbsp;&nbsp; 25984 | &nbsp;&nbsp;&nbsp; 32899 | &nbsp;&nbsp; 2046978  |
| Distribution expenses (Note 5) | &nbsp;&nbsp;&nbsp;&nbsp; 1385 | &nbsp;&nbsp;&nbsp;&nbsp; 21239 | &nbsp;&nbsp;&nbsp;&nbsp; 8661 | &nbsp;&nbsp;&nbsp; 10966 | &nbsp;&nbsp; 682326  |
| Legal fees | &nbsp;&nbsp;&nbsp;&nbsp; 603 | &nbsp;&nbsp;&nbsp;&nbsp; 2195 | &nbsp;&nbsp;&nbsp;&nbsp; 5708 | &nbsp;&nbsp;&nbsp; 1566 | &nbsp;&nbsp; 97555  |
|  Fund administration and accounting fees | &nbsp;&nbsp;&nbsp;&nbsp; 587 | &nbsp;&nbsp;&nbsp;&nbsp; 8991 | &nbsp;&nbsp;&nbsp;&nbsp; 3669 | &nbsp;&nbsp;&nbsp; 4645 | &nbsp;&nbsp; 288986  |
| Management service fees (Note 5) | &nbsp;&nbsp;&nbsp;&nbsp; 270 | &nbsp;&nbsp;&nbsp;&nbsp; 4168 | &nbsp;&nbsp;&nbsp;&nbsp; 1696 | &nbsp;&nbsp;&nbsp; 2148 | &nbsp;&nbsp; 133645  |
| Trustees' fees | &nbsp;&nbsp;&nbsp;&nbsp; 212 | &nbsp;&nbsp;&nbsp;&nbsp; 784 | &nbsp;&nbsp;&nbsp;&nbsp; 2010 | &nbsp;&nbsp;&nbsp; 555 | &nbsp;&nbsp; 34643  |
| Reports to shareholders | &nbsp;&nbsp;&nbsp;&nbsp; 188 | &nbsp;&nbsp;&nbsp;&nbsp; 685 | &nbsp;&nbsp;&nbsp;&nbsp; 1784 | &nbsp;&nbsp;&nbsp; 490 | &nbsp;&nbsp; 30486  |
| Interest expense | &nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; 3029 | &nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; 3174 | &nbsp;&nbsp; 127364  |
| Other expenses and fees | &nbsp;&nbsp;&nbsp;&nbsp; 5449 | &nbsp;&nbsp;&nbsp;&nbsp; 6658 | &nbsp;&nbsp;&nbsp;&nbsp; 8154 | &nbsp;&nbsp;&nbsp; 3885 | &nbsp;&nbsp; 180767  |
| &nbsp;&nbsp;&nbsp; Total expenses | &nbsp;&nbsp;&nbsp;&nbsp; 31068 | &nbsp;&nbsp;&nbsp;&nbsp; 133570 | &nbsp;&nbsp;&nbsp;&nbsp; 110473 | &nbsp;&nbsp;&nbsp; 94525 | &nbsp;&nbsp; 3686547  |
| &nbsp;&nbsp;&nbsp; Reimbursement of expenses from Adviser (Note 5) | &nbsp;&nbsp;&nbsp;&nbsp; (23590) | &nbsp;&nbsp;&nbsp;&nbsp; (15850) | &nbsp;&nbsp;&nbsp;&nbsp; (63705) | &nbsp;&nbsp;&nbsp; (40907) | &nbsp;&nbsp; —  |
| &nbsp;&nbsp;&nbsp; Net expenses | &nbsp;&nbsp;&nbsp;&nbsp; 7478 | &nbsp;&nbsp;&nbsp;&nbsp; 117720 | &nbsp;&nbsp;&nbsp;&nbsp; 46768 | &nbsp;&nbsp;&nbsp; 53618 | &nbsp;&nbsp; 3686547  |
| **Net investment income** | &nbsp;&nbsp;&nbsp;&nbsp; 12494 | &nbsp;&nbsp;&nbsp;&nbsp; 211301 | &nbsp;&nbsp;&nbsp;&nbsp; 140580 | &nbsp;&nbsp;&nbsp; 29964 | &nbsp;&nbsp; 783800  |
|  **REALIZED AND UNREALIZED GAIN (LOSS)**<br>|  |  |  |  |  |
| Net realized gain (loss) from:<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Investments | &nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; 118148 | &nbsp;&nbsp;&nbsp;&nbsp; 218713 | &nbsp;&nbsp;&nbsp; 238985 | &nbsp;&nbsp; —  |
| &nbsp;&nbsp;&nbsp; Swap contracts | &nbsp;&nbsp;&nbsp;&nbsp; (144137) | &nbsp;&nbsp;&nbsp;&nbsp; 50228 | &nbsp;&nbsp;&nbsp;&nbsp; 92372 | &nbsp;&nbsp;&nbsp; 809189 | &nbsp;&nbsp; 67517973  |
| Net realized gain (loss) | &nbsp;&nbsp;&nbsp;&nbsp; (144137) | &nbsp;&nbsp;&nbsp;&nbsp; 168376 | &nbsp;&nbsp;&nbsp;&nbsp; 311085 | &nbsp;&nbsp;&nbsp; 1048174 | &nbsp;&nbsp; 67517973  |
|  Net change in unrealized appreciation (depreciation) on:<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Investments | &nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; (68269) | &nbsp;&nbsp;&nbsp;&nbsp; (206413) | &nbsp;&nbsp;&nbsp; 198420 | &nbsp;&nbsp; 19101938  |
| &nbsp;&nbsp;&nbsp; Swap contracts | &nbsp;&nbsp;&nbsp;&nbsp; 16418 | &nbsp;&nbsp;&nbsp;&nbsp; (214925) | &nbsp;&nbsp;&nbsp;&nbsp; (108176) | &nbsp;&nbsp;&nbsp; (470552) | &nbsp;&nbsp; (38090787)  |
|  Net change in unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp; 16418 | &nbsp;&nbsp;&nbsp;&nbsp; (283194) | &nbsp;&nbsp;&nbsp;&nbsp; (314589) | &nbsp;&nbsp;&nbsp; (272132) | &nbsp;&nbsp; (18988849)  |
| &nbsp;&nbsp;&nbsp; **Net realized and unrealized** <br>**gain (loss)** | &nbsp;&nbsp;&nbsp;&nbsp; (127719) | &nbsp;&nbsp;&nbsp;&nbsp; (114818) | &nbsp;&nbsp;&nbsp;&nbsp; (3504) | &nbsp;&nbsp;&nbsp; 776042 | &nbsp;&nbsp; 48529124  |
|  **NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS** | &nbsp;&nbsp;&nbsp;&nbsp; $(115225) | &nbsp;&nbsp;&nbsp;&nbsp; $96483 | &nbsp;&nbsp;&nbsp;&nbsp; $137076 | &nbsp;&nbsp;&nbsp; $806006 | &nbsp;&nbsp; $49312924 |

---

The accompanying notes are an integral part of these financial statements.

10<br>

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**[**TABLE OF CONTENTS**](#TOC)**

**Direxion Funds** 

**Statements of Operations** 

**For the Period Ended February 28, 2026 (Unaudited)(Continued)** 

---

| | | |
|:---|:---|:---|
|  | **Direxion Monthly** <br>**S&P 500 Bull 1.75X** <br>**Fund** | **Direxion Monthly** <br>**Small Cap Bull** <br>**1.75X Fund**  |
| **INVESTMENT INCOME:**<br>|  |  |
| Dividend income | &nbsp;&nbsp;&nbsp; $776375 | &nbsp;&nbsp;&nbsp; $54476  |
| Interest income | &nbsp;&nbsp;&nbsp; 711042 | &nbsp;&nbsp;&nbsp; 48739  |
| &nbsp;&nbsp;&nbsp; **Total investment income** | &nbsp;&nbsp;&nbsp; 1487417 | &nbsp;&nbsp;&nbsp; 103215  |
| **EXPENSES:**<br>|  |  |
| Investment advisory fee (Note 5) | &nbsp;&nbsp;&nbsp; 468809 | &nbsp;&nbsp;&nbsp; 35237  |
| Distribution expenses (Note 5) | &nbsp;&nbsp;&nbsp; 156270 | &nbsp;&nbsp;&nbsp; 11746  |
| Fund administration and accounting fees | &nbsp;&nbsp;&nbsp; 66188 | &nbsp;&nbsp;&nbsp; 4975  |
| Interest expense | &nbsp;&nbsp;&nbsp; 48371 | &nbsp;&nbsp;&nbsp; 2544  |
| Management service fees (Note 5) | &nbsp;&nbsp;&nbsp; 30604 | &nbsp;&nbsp;&nbsp; 2300  |
| Legal fees | &nbsp;&nbsp;&nbsp; 23576 | &nbsp;&nbsp;&nbsp; 2313  |
| State registration fees | &nbsp;&nbsp;&nbsp; 20931 | &nbsp;&nbsp;&nbsp; 14362  |
| Audit fees | &nbsp;&nbsp;&nbsp; 14536 | &nbsp;&nbsp;&nbsp; 5899  |
| Trustees' fees | &nbsp;&nbsp;&nbsp; 8367 | &nbsp;&nbsp;&nbsp; 820  |
| Reports to shareholders | &nbsp;&nbsp;&nbsp; 7368 | &nbsp;&nbsp;&nbsp; 724  |
| Other expenses and fees | &nbsp;&nbsp;&nbsp; 29932 | &nbsp;&nbsp;&nbsp; 5075  |
| &nbsp;&nbsp;&nbsp; Total expenses | &nbsp;&nbsp;&nbsp; 874952 | &nbsp;&nbsp;&nbsp; 85995  |
| &nbsp;&nbsp;&nbsp; Recoupment of expenses by Adviser (Note 5) | &nbsp;&nbsp;&nbsp; 17276 | &nbsp;&nbsp;&nbsp; —  |
| &nbsp;&nbsp;&nbsp; Reimbursement of expenses from Adviser (Note 5) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (20024)  |
| &nbsp;&nbsp;&nbsp; Net expenses | &nbsp;&nbsp;&nbsp; 892228 | &nbsp;&nbsp;&nbsp; 65971  |
| **Net investment income** | &nbsp;&nbsp;&nbsp; 595189 | &nbsp;&nbsp;&nbsp; 37244  |
| **REALIZED AND UNREALIZED GAIN (LOSS)**<br>|  |  |
| Net realized gain (loss) from:<br>|  |  |
| &nbsp;&nbsp;&nbsp; Investments | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (19501)  |
| &nbsp;&nbsp;&nbsp; Swap contracts | &nbsp;&nbsp;&nbsp; 18888601 | &nbsp;&nbsp;&nbsp; 1739816  |
| Net realized gain | &nbsp;&nbsp;&nbsp; 18888601 | &nbsp;&nbsp;&nbsp; 1720315  |
| Net change in unrealized appreciation (depreciation) on:<br>|  |  |
| &nbsp;&nbsp;&nbsp; Investments | &nbsp;&nbsp;&nbsp; 3593407 | &nbsp;&nbsp;&nbsp; 396018  |
| &nbsp;&nbsp;&nbsp; Swap contracts | &nbsp;&nbsp;&nbsp; (11385638) | &nbsp;&nbsp;&nbsp; (589605)  |
| Net change in unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp; (7792231) | &nbsp;&nbsp;&nbsp; (193587)  |
| **Net realized and unrealized gain**  | &nbsp;&nbsp;&nbsp; 11096370 | &nbsp;&nbsp;&nbsp; 1526728  |
| **NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS** | &nbsp;&nbsp;&nbsp; $11691559 | &nbsp;&nbsp;&nbsp; $1563972 |

---

The accompanying notes are an integral part of these financial statements.

11<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**Direxion Funds** 

**Statements of Changes in Net Assets** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Direxion Monthly** <br>**7-10 Year Treasury Bear 1.75X Fund** | **Direxion Monthly** <br>**7-10 Year Treasury Bear 1.75X Fund** | **Direxion Monthly** <br>**7-10 Year Treasury Bull 1.75X Fund**  | **Direxion Monthly** <br>**7-10 Year Treasury Bull 1.75X Fund**  |
|  | **Period Ended** <br>**February 28, 2026** <br>(Unaudited) | **Year Ended** <br>**August 31, 2025** | **Period Ended** <br>**February 28, 2026** <br>(Unaudited) | **Year Ended** <br>**August 31, 2025**  |
| **OPERATIONS:**<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income | &nbsp;&nbsp; $12494 | $96517 | &nbsp;&nbsp; $211301 | $258096  |
| &nbsp;&nbsp;&nbsp; Net realized gain (loss) | &nbsp;&nbsp; (144137) | (313893) | &nbsp;&nbsp; 168376 | (736118)  |
| &nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | &nbsp;&nbsp; 16418 | 84031 | &nbsp;&nbsp; (283194) | 189021  |
| &nbsp;&nbsp;&nbsp; **Net increase (decrease) in net assets from operations** | &nbsp;&nbsp; (115225) | (133345) | &nbsp;&nbsp; 96483 | (289001)  |
| **DISTRIBUTIONS TO SHAREHOLDERS:**<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp; From earnings | &nbsp;&nbsp; (64620) | (138462) | &nbsp;&nbsp; (258096) | (270462)  |
| &nbsp;&nbsp;&nbsp; **Total distributions to shareholders** | &nbsp;&nbsp; (64620) | (138462) | &nbsp;&nbsp; (258096) | (270462)  |
| **CAPITAL TRANSACTIONS:**<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp; Shares sold | &nbsp;&nbsp; 9843010 | 8855348 | &nbsp;&nbsp; 29095332 | 56820222  |
| &nbsp;&nbsp;&nbsp; Shares issued from reinvestment of distributions | &nbsp;&nbsp; 63866 | 136732 | &nbsp;&nbsp; 257820 | 267999  |
| &nbsp;&nbsp;&nbsp; Shares redeemed | &nbsp;&nbsp; (10180065) | (10619928) | &nbsp;&nbsp; (48316504) | (45594420)  |
| &nbsp;&nbsp;&nbsp; **Net increase (decrease) in net assets from capital transactions** | &nbsp;&nbsp; (273189) | (1627848) | &nbsp;&nbsp; (18963352) | 11493801  |
| **Net increase (decrease) in net assets** | &nbsp;&nbsp; (453034) | (1899655) | &nbsp;&nbsp; (19124965) | 10934338  |
| **NET ASSETS:**<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp; Beginning of the period/year | &nbsp;&nbsp; 1287904 | 3187559 | &nbsp;&nbsp; 23532381 | 12598043  |
| &nbsp;&nbsp;&nbsp; End of the period/year | &nbsp;&nbsp; $834870 | $1287904 | &nbsp;&nbsp; $4407416 | $23532381  |
| **SHARES TRANSACTIONS**<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp; Shares sold | &nbsp;&nbsp; 389560 | 308444 | &nbsp;&nbsp; 1328982 | 2645447  |
| &nbsp;&nbsp;&nbsp; Shares issued from reinvestment of distributions | &nbsp;&nbsp; 2560 | 4943 | &nbsp;&nbsp; 12056 | 13241  |
| &nbsp;&nbsp;&nbsp; Shares redeemed | &nbsp;&nbsp; (404088) | (383536) | &nbsp;&nbsp; (2229735) | (2072192)  |
| &nbsp;&nbsp;&nbsp; **Total increase (decrease) in shares outstanding** | &nbsp;&nbsp; (11968) | (70149) | &nbsp;&nbsp; (888697) | 586496 |

---

The accompanying notes are an integral part of these financial statements.

12<br>

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**[**TABLE OF CONTENTS**](#TOC)**

**Direxion Funds** 

**Statements of Changes in Net Assets(Continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Direxion Monthly** <br>**High Yield Bull 1.2X Fund** | **Direxion Monthly** <br>**High Yield Bull 1.2X Fund** | **Direxion Monthly** <br>**NASDAQ-100 Bull 1.25X Fund**  | **Direxion Monthly** <br>**NASDAQ-100 Bull 1.25X Fund**  |
|  | **Period Ended** <br>**February 28, 2026** <br>(Unaudited) | **Year Ended** <br>**August 31, 2025** | **Period Ended** <br>**February 28, 2026** <br>(Unaudited) | **Year Ended** <br>**August 31, 2025**  |
| **OPERATIONS:**<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income | &nbsp;&nbsp; $140580 | $1387504 | &nbsp;&nbsp; $29964 | $86169  |
| &nbsp;&nbsp;&nbsp; Net realized gain | &nbsp;&nbsp; 311085 | 692736 | &nbsp;&nbsp; 1048174 | 337841  |
| &nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | &nbsp;&nbsp; (314589) | (1904693) | &nbsp;&nbsp; (272132) | 642342  |
| &nbsp;&nbsp;&nbsp; **Net increase in net assets from operations** | &nbsp;&nbsp; 137076 | 175547 | &nbsp;&nbsp; 806006 | 1066352  |
| **DISTRIBUTIONS TO SHAREHOLDERS:**<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp; From earnings | &nbsp;&nbsp; (141764) | (1387504) | &nbsp;&nbsp; (86169) | (190446)  |
| &nbsp;&nbsp;&nbsp; From return of capital | &nbsp;&nbsp; — | (1786) | &nbsp;&nbsp; — | —  |
| &nbsp;&nbsp;&nbsp; **Total distributions to shareholders** | &nbsp;&nbsp; (141764) | (1389290) | &nbsp;&nbsp; (86169) | (190446)  |
| **CAPITAL TRANSACTIONS:**<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp; Shares sold | &nbsp;&nbsp; 85398054 | 315113674 | &nbsp;&nbsp; 46832840 | 94378947  |
| &nbsp;&nbsp;&nbsp; Shares issued from reinvestment of distributions | &nbsp;&nbsp; 141506 | 1382755 | &nbsp;&nbsp; 86036 | 186155  |
| &nbsp;&nbsp;&nbsp; Shares redeemed | &nbsp;&nbsp; (88452405) | (367405903) | &nbsp;&nbsp; (49617528) | (99496160)  |
| &nbsp;&nbsp;&nbsp; **Net decrease in net assets from capital transactions** | &nbsp;&nbsp; (2912845) | (50909474) | &nbsp;&nbsp; (2698652) | (4931058)  |
| **Net decrease in net assets** | &nbsp;&nbsp; (2917533) | (52123217) | &nbsp;&nbsp; (1978815) | (4055152)  |
| **NET ASSETS:**<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp; Beginning of the period/year | &nbsp;&nbsp; 7204285 | 59327502 | &nbsp;&nbsp; 8775965 | 12831117  |
| &nbsp;&nbsp;&nbsp; End of the period/year | &nbsp;&nbsp; $4286752 | $7204285 | &nbsp;&nbsp; $6797150 | $8775965  |
| **SHARES TRANSACTIONS**<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp; Shares sold | &nbsp;&nbsp; 4813299 | 17983586 | &nbsp;&nbsp; 491719 | 1172235  |
| &nbsp;&nbsp;&nbsp; Shares issued from reinvestment of distributions | &nbsp;&nbsp; 8000 | 79007 | &nbsp;&nbsp; 903 | 2362  |
| &nbsp;&nbsp;&nbsp; Shares redeemed | &nbsp;&nbsp; (4986891) | (21043378) | &nbsp;&nbsp; (519174) | (1246591)  |
| &nbsp;&nbsp;&nbsp; **Total decrease in shares outstanding** | &nbsp;&nbsp; (165592) | (2980785) | &nbsp;&nbsp; (26552) | (71994) |

---

The accompanying notes are an integral part of these financial statements.

13<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**Direxion Funds** 

**Statements of Changes in Net Assets(Continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Direxion Monthly** <br>**NASDAQ-100 Bull 1.75X Fund** | **Direxion Monthly** <br>**NASDAQ-100 Bull 1.75X Fund** | **Direxion Monthly** <br>**S&P 500 Bull 1.75X Fund**  | **Direxion Monthly** <br>**S&P 500 Bull 1.75X Fund**  |
|  | **Period Ended** <br>**February 28, 2026** <br>(Unaudited) | **Year Ended** <br>**August 31, 2025** | **Period Ended** <br>**February 28, 2026** <br>(Unaudited) | **Year Ended** <br>**August 31, 2025**  |
| **OPERATIONS:**<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income | $783800 | $4501529 | $595189 | $1558800  |
| &nbsp;&nbsp;&nbsp; Net realized gain | 67517973 | 69715599 | 18888601 | 13378382  |
| &nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (18988849) | 46779842 | (7792231) | 8762095  |
| &nbsp;&nbsp;&nbsp; **Net increase in net assets from operations** | 49312924 | 120996970 | 11691559 | 23699277  |
| **DISTRIBUTIONS TO SHAREHOLDERS:**<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp; From earnings | (73029320) | (4553713) | (9163725) | (13027551)  |
| &nbsp;&nbsp;&nbsp; **Total distributions to shareholders** | (73029320) | (4553713) | (9163725) | (13027551)  |
| **CAPITAL TRANSACTIONS:**<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp; Shares sold | 55707565 | 153494398 | 31423546 | 88598254  |
| &nbsp;&nbsp;&nbsp; Shares issued from reinvestment of distributions | 71900175 | 4484567 | 9123541 | 12954236  |
| &nbsp;&nbsp;&nbsp; Shares redeemed | (129270593) | (189345530) | (43991418) | (109811988)  |
| &nbsp;&nbsp;&nbsp; **Net decrease in net assets from capital transactions** | (1662853) | (31366565) | (3444331) | (8259498)  |
| **Net increase (decrease) in net assets** | (25379249) | 85076692 | (916497) | 2412228  |
| **NET ASSETS:**<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp; Beginning of the period/year | 531022814 | 445946122 | 122155327 | 119743099  |
| &nbsp;&nbsp;&nbsp; End of the period/year | $505643565 | $531022814 | $121238830 | $122155327  |
| **SHARES TRANSACTIONS**<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp; Shares sold | 495815 | 1735662 | 404401 | 1378702  |
| &nbsp;&nbsp;&nbsp; Shares issued from reinvestment of distributions | 664291 | 49396 | 117648 | 187700  |
| &nbsp;&nbsp;&nbsp; Shares redeemed | (1171763) | (2150065) | (565214) | (1668027)  |
| &nbsp;&nbsp;&nbsp; **Total decrease in shares outstanding** | (11657) | (365007) | (43165) | (101625) |

---

The accompanying notes are an integral part of these financial statements.

14<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**Direxion Funds** 

**Statements of Changes in Net Assets(Continued)** 

---

| | | |
|:---|:---|:---|
|  | **Direxion Monthly** <br>**Small Cap Bull 1.75X Fund**  | **Direxion Monthly** <br>**Small Cap Bull 1.75X Fund**  |
|  | **Period Ended** <br>**February 28, 2026** <br>(Unaudited) | **Year Ended** <br>**August 31, 2025**  |
| **OPERATIONS:**<br>|  |  |
| &nbsp;&nbsp;&nbsp; Net investment income | &nbsp;&nbsp; $37244 | $178729  |
| &nbsp;&nbsp;&nbsp; Net realized gain (loss) | &nbsp;&nbsp; 1720315 | (1882683)  |
| &nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | &nbsp;&nbsp; (193587) | (134144)  |
| &nbsp;&nbsp;&nbsp; **Net increase (decrease) in net assets from operations** | &nbsp;&nbsp; 1563972 | (1838098)  |
| **DISTRIBUTIONS TO SHAREHOLDERS:**<br>|  |  |
| &nbsp;&nbsp;&nbsp; From earnings | &nbsp;&nbsp; (178729) | (198031)  |
| &nbsp;&nbsp;&nbsp; **Total distributions to shareholders** | &nbsp;&nbsp; (178729) | (198031)  |
| **CAPITAL TRANSACTIONS:**<br>|  |  |
| &nbsp;&nbsp;&nbsp; Shares sold | &nbsp;&nbsp; 6277921 | 18900564  |
| &nbsp;&nbsp;&nbsp; Shares issued from reinvestment of distributions | &nbsp;&nbsp; 176290 | 196012  |
| &nbsp;&nbsp;&nbsp; Shares redeemed | &nbsp;&nbsp; (7860130) | (22545242)  |
| &nbsp;&nbsp;&nbsp; **Net decrease in net assets from capital transactions** | &nbsp;&nbsp; (1405919) | (3448666)  |
| **Net decrease in net assets** | &nbsp;&nbsp; (20676) | (5484795)  |
| **NET ASSETS:**<br>|  |  |
| &nbsp;&nbsp;&nbsp; Beginning of the period/year | &nbsp;&nbsp; 9247869 | 14732664  |
| &nbsp;&nbsp;&nbsp; End of the period/year | &nbsp;&nbsp; $9227193 | $9247869  |
| **SHARES TRANSACTIONS**<br>|  |  |
| &nbsp;&nbsp;&nbsp; Shares sold | &nbsp;&nbsp; 61799 | 224211  |
| &nbsp;&nbsp;&nbsp; Shares issued from reinvestment of distributions | &nbsp;&nbsp; 1818 | 2321  |
| &nbsp;&nbsp;&nbsp; Shares redeemed | &nbsp;&nbsp; (77906) | (294020)  |
| &nbsp;&nbsp;&nbsp; **Total decrease in shares outstanding** | &nbsp;&nbsp; (14289) | (67488) |

---

The accompanying notes are an integral part of these financial statements.

15<br>

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**[**TABLE OF CONTENTS**](#TOC)**

**Direxion Funds** 

**Financial Highlights** 

**February 28, 2026** 

---

| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  |  |  |  |  |  |  | **SUPPLEMENTAL DATA AND RATIOS:**  | **SUPPLEMENTAL DATA AND RATIOS:**  | **SUPPLEMENTAL DATA AND RATIOS:**  | **SUPPLEMENTAL DATA AND RATIOS:**  | **SUPPLEMENTAL DATA AND RATIOS:**  | **SUPPLEMENTAL DATA AND RATIOS:**  | **SUPPLEMENTAL DATA AND RATIOS:**  | |
|  | **Net Asset** <br>**Value,** <br>**Beginning** <br>**of** <br>**Period/**<br>**Year** | **Net** <br>**Investment** <br>**Income** <br>(Loss)<sup>1</sup> | **Net** <br>**Realized** <br>**and** <br>**Unrealized** <br>**Gain (Loss)** <br>**on** <br>**Investments<sup>2</sup>** | **Net**<br>**Increase**<br>(Decrease)<br>**in Net Asset**<br>**Value**<br>**Resulting**<br>**from**<br>**Operations** | **Dividends**<br>**from Net**<br>**Investment**<br>**Income** | **Distributions**<br>**from**<br>**Realized**<br>**Capital Gains** | **Return of**<br>**Capital**<br>**Distribution** | **Total**<br>**Distributions** | **Net** <br>**Asset** <br>**Value,** <br>**End of** <br>**Period/**<br>**Year** | **Total** <br>**Return<sup>3</sup>** | **Net Assets,**<br>**End of**<br>**Year**<br>**(,000)** | **Total** <br>**Expenses<sup>4</sup>** | **Net** <br>**Expenses<sup>4,5</sup>** | **Net** <br>**Investment** <br>**Income (Loss)** <br>**after** <br>**Expense** <br>**Reimbursement/**<br>**Recoupment<sup>4</sup>** | **Total** <br>**Expenses** | **Net** <br>**Expenses<sup>5</sup>** | **Net** <br>**Investment** <br>**Income (Loss)** <br>**after** <br>**Expense** <br>**Reimbursement/**<br>**Recoupment** | <br>**Portfolio** <br>**Turnover** <br>**Rate<sup>6</sup>**  |
| **Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund** | **Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund** | **Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund** | **Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund** | **Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund** | **Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund** | **Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund** | **Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund** | **Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund** | **Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund** | **Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund** | **Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund** | **Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund** | **Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund** | **Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund** | **Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund** | **Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund** | **Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund** | **Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund** |
|  Six months ended February 28, 2026 (Unaudited) | $27.76 | &nbsp;&nbsp;&nbsp;&nbsp;0.29 | &nbsp;&nbsp;&nbsp; (0.75) | &nbsp;&nbsp; (0.46) | &nbsp;&nbsp; (3.05) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (3.05) | $24.25 | -1.97% | $835 | &nbsp;&nbsp; 5.61% | &nbsp;&nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 2.26% | &nbsp;&nbsp; 5.61% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 2.26% | 0%  |
| Year ended August 31, 2025 | $27.35 | &nbsp;&nbsp;&nbsp;&nbsp;0.84 | &nbsp;&nbsp;&nbsp;&nbsp;0.72 | &nbsp;&nbsp;&nbsp;&nbsp;1.56 | &nbsp;&nbsp; (1.15) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (1.15) | $27.76 | 5.69% | $1288 | &nbsp;&nbsp; 2.57% | &nbsp;&nbsp;&nbsp; 1.38% | &nbsp;&nbsp;&nbsp;&nbsp; 2.96% | &nbsp;&nbsp; 2.54% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 2.99% | 0%  |
| Year ended August 31, 2024 | $31.32 | &nbsp;&nbsp;&nbsp;&nbsp;1.08 | &nbsp;&nbsp;&nbsp; (0.94) | &nbsp;&nbsp;&nbsp;&nbsp;0.14 | &nbsp;&nbsp; (4.11) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (4.11) | $27.35 | 0.02% | $3188 | &nbsp;&nbsp; 1.98% | &nbsp;&nbsp;&nbsp; 1.55% | &nbsp;&nbsp;&nbsp;&nbsp; 3.52% | &nbsp;&nbsp; 1.78% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 3.72% | 0%  |
| Year ended August 31, 2023 | $27.27 | &nbsp;&nbsp;&nbsp;&nbsp;0.90 | &nbsp;&nbsp;&nbsp;&nbsp;3.15 | &nbsp;&nbsp;&nbsp;&nbsp;4.05 | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | $31.32 | 14.84% | $15151 | &nbsp;&nbsp; 2.16% | &nbsp;&nbsp;&nbsp; 1.42% | &nbsp;&nbsp;&nbsp;&nbsp; 2.99% | &nbsp;&nbsp; 2.09% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 3.06% | 0%  |
| Year ended August 31, 2022 | $21.43 | &nbsp;&nbsp; (0.24) | &nbsp;&nbsp;&nbsp;&nbsp;6.08 | &nbsp;&nbsp;&nbsp;&nbsp;5.84 | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | $27.27 | 27.26% | $2650 | &nbsp;&nbsp; 2.28% | &nbsp;&nbsp;&nbsp; 1.37% | &nbsp;&nbsp;&nbsp;&nbsp; (0.99)% | &nbsp;&nbsp; 2.26% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; (0.97)% | 0%  |
| Year ended August 31, 2021 | $20.65 | &nbsp;&nbsp; (0.29) | &nbsp;&nbsp;&nbsp;&nbsp;1.07 | &nbsp;&nbsp;&nbsp;&nbsp;0.78 | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | $21.43 | 3.76% | $9273 | &nbsp;&nbsp; 2.57% | &nbsp;&nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; (1.34)% | &nbsp;&nbsp; 2.57% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; (1.34)% | 0%  |
| **Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund**  | **Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund**  | **Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund**  | **Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund**  | **Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund**  | **Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund**  | **Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund**  | **Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund**  | **Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund**  | **Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund**  | **Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund**  | **Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund**  | **Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund**  | **Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund**  | **Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund**  | **Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund**  | **Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund**  | **Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund**  | **Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund**  |
|  Six months ended February 28, 2026 (Unaudited) | $21.62 | &nbsp;&nbsp;&nbsp;&nbsp;0.27 | &nbsp;&nbsp;&nbsp;&nbsp;0.51 | &nbsp;&nbsp;&nbsp;&nbsp;0.78 | &nbsp;&nbsp; (0.36) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (0.36) | $22.04 | 3.69% | $4407 | &nbsp;&nbsp; 1.57% | &nbsp;&nbsp;&nbsp; 1.39% | &nbsp;&nbsp;&nbsp;&nbsp; 2.49% | &nbsp;&nbsp; 1.53% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 2.53% | 17%  |
| Year ended August 31, 2025 | $25.09 | &nbsp;&nbsp;&nbsp;&nbsp;0.58 | &nbsp;&nbsp;&nbsp; (1.13) | &nbsp;&nbsp; (0.55) | &nbsp;&nbsp; (2.92) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (2.92) | $21.62 | -1.42% | $23532 | &nbsp;&nbsp; 1.69% | &nbsp;&nbsp;&nbsp; 1.36% | &nbsp;&nbsp;&nbsp;&nbsp; 2.64% | &nbsp;&nbsp; 1.68% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 2.65% | 296%  |
| Year ended August 31, 2024 | $24.58 | &nbsp;&nbsp;&nbsp;&nbsp;0.67 | &nbsp;&nbsp;&nbsp;&nbsp;0.09 | &nbsp;&nbsp;&nbsp;&nbsp;0.76 | &nbsp;&nbsp; (0.25) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (0.25) | $25.09 | 3.09% | $12598 | &nbsp;&nbsp; 1.67% | &nbsp;&nbsp;&nbsp; 1.39% | &nbsp;&nbsp;&nbsp;&nbsp; 2.79% | &nbsp;&nbsp; 1.63% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 2.83% | 399%  |
| Year ended August 31, 2023 | $27.88 | &nbsp;&nbsp;&nbsp;&nbsp;0.56 | &nbsp;&nbsp;&nbsp; (3.86) | &nbsp;&nbsp; (3.30) | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | $24.58 | -11.82% | $3533 | &nbsp;&nbsp; 1.73% | &nbsp;&nbsp;&nbsp; 1.37% | &nbsp;&nbsp;&nbsp;&nbsp; 2.13% | &nbsp;&nbsp; 1.71% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 2.15% | 351%  |
| Year ended August 31, 2022 | $37.54 | &nbsp;&nbsp; (0.26) | &nbsp;&nbsp;&nbsp; (9.40) | &nbsp;&nbsp; (9.66) | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | $27.88 | -25.74% | $5146 | &nbsp;&nbsp; 1.66% | &nbsp;&nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; (0.77)% | &nbsp;&nbsp; 1.66% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; (0.77)% | 144%  |
| Year ended August 31, 2021 | $42.14 | &nbsp;&nbsp; (0.40) | &nbsp;&nbsp;&nbsp; (2.92) | &nbsp;&nbsp; (3.32) | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (1.28) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (1.28) | $37.54 | -8.06% | $25364 | &nbsp;&nbsp; 1.44% | &nbsp;&nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; (1.04)% | &nbsp;&nbsp; 1.44% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; (1.04)% | —%  |
| **Direxion Monthly High Yield Bull 1.2X Fund**  | **Direxion Monthly High Yield Bull 1.2X Fund**  | **Direxion Monthly High Yield Bull 1.2X Fund**  | **Direxion Monthly High Yield Bull 1.2X Fund**  | **Direxion Monthly High Yield Bull 1.2X Fund**  | **Direxion Monthly High Yield Bull 1.2X Fund**  | **Direxion Monthly High Yield Bull 1.2X Fund**  | **Direxion Monthly High Yield Bull 1.2X Fund**  | **Direxion Monthly High Yield Bull 1.2X Fund**  | **Direxion Monthly High Yield Bull 1.2X Fund**  | **Direxion Monthly High Yield Bull 1.2X Fund**  | **Direxion Monthly High Yield Bull 1.2X Fund**  | **Direxion Monthly High Yield Bull 1.2X Fund**  | **Direxion Monthly High Yield Bull 1.2X Fund**  | **Direxion Monthly High Yield Bull 1.2X Fund**  | **Direxion Monthly High Yield Bull 1.2X Fund**  | **Direxion Monthly High Yield Bull 1.2X Fund**  | **Direxion Monthly High Yield Bull 1.2X Fund**  | **Direxion Monthly High Yield Bull 1.2X Fund**  |
|  Six months ended February 28, 2026 (Unaudited) | $17.66 | &nbsp;&nbsp;&nbsp;&nbsp;0.36 | &nbsp;&nbsp;&nbsp; (0.02) | &nbsp;&nbsp;&nbsp;&nbsp;0.34 | &nbsp;&nbsp; (0.32) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (0.32) | $17.68 | 1.97% | $4287 | &nbsp;&nbsp; 3.19% | &nbsp;&nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 4.06% | &nbsp;&nbsp; 3.19% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 4.06% | 1,394%  |
| Year ended August 31, 2025 | $17.51 | &nbsp;&nbsp;&nbsp;&nbsp;0.79 | &nbsp;&nbsp;&nbsp;&nbsp;0.30 | &nbsp;&nbsp;&nbsp;&nbsp;1.09 | &nbsp;&nbsp; (0.94) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp;0.00<sup>7</sup> | &nbsp;&nbsp;&nbsp; (0.94) | $17.66 | 6.46% | $7204 | &nbsp;&nbsp; 1.65% | &nbsp;&nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 4.51% | &nbsp;&nbsp; 1.65% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 4.51% | 913%  |
| Year ended August 31, 2024 | $16.50 | &nbsp;&nbsp;&nbsp;&nbsp;0.75 | &nbsp;&nbsp;&nbsp;&nbsp;1.00 | &nbsp;&nbsp;&nbsp;&nbsp;1.75 | &nbsp;&nbsp; (0.74) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (0.00)<sup>7</sup> | &nbsp;&nbsp;&nbsp; (0.74) | $17.51 | 10.90% | $59328 | &nbsp;&nbsp; 1.47% | &nbsp;&nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 4.40% | &nbsp;&nbsp; 1.47% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 4.40% | 869%  |
| Year ended August 31, 2023 | $16.76 | &nbsp;&nbsp;&nbsp;&nbsp;0.94 | &nbsp;&nbsp;&nbsp;&nbsp;0.01 | &nbsp;&nbsp;&nbsp;&nbsp;0.95 | &nbsp;&nbsp; (1.21) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (1.21) | $16.50 | 5.94% | $23057 | &nbsp;&nbsp; 1.49% | &nbsp;&nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 5.65% | &nbsp;&nbsp; 1.49% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 5.65% | 2,720%  |
| Year ended August 31, 2022 | $21.57 | &nbsp;&nbsp;&nbsp;&nbsp;0.50 | &nbsp;&nbsp;&nbsp; (3.49) | &nbsp;&nbsp; (2.99) | &nbsp;&nbsp; (1.78) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (0.04) | &nbsp;&nbsp;&nbsp; (1.82) | $16.76 | -14.45% | $19002 | &nbsp;&nbsp; 1.37% | &nbsp;&nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 2.53% | &nbsp;&nbsp; 1.37% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 2.53% | 2,768%  |
| Year ended August 31, 2021 | $20.34 | &nbsp;&nbsp;&nbsp;&nbsp;0.42 | &nbsp;&nbsp;&nbsp;&nbsp;1.28 | &nbsp;&nbsp;&nbsp;&nbsp;1.70 | &nbsp;&nbsp; (0.46) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (0.01) | &nbsp;&nbsp;&nbsp; (0.47) | $21.57 | 8.46% | $91324 | &nbsp;&nbsp; 1.33% | &nbsp;&nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 2.00% | &nbsp;&nbsp; 1.33% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 2.00% | 1,181%  |
| **Direxion Monthly NASDAQ-100 Bull 1.25X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.25X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.25X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.25X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.25X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.25X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.25X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.25X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.25X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.25X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.25X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.25X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.25X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.25X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.25X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.25X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.25X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.25X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.25X Fund**  |
|  Six months ended February 28, 2026 (Unaudited) | $88.58 | &nbsp;&nbsp;&nbsp;&nbsp;0.32 | &nbsp;&nbsp;&nbsp;&nbsp;5.77 | &nbsp;&nbsp;&nbsp;&nbsp;6.09 | &nbsp;&nbsp; (0.95) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (0.95) | $93.72 | 6.87% | $6797 | &nbsp;&nbsp; 2.15% | &nbsp;&nbsp;&nbsp; 1.22% | &nbsp;&nbsp;&nbsp;&nbsp; 0.68% | &nbsp;&nbsp; 2.08% | &nbsp;&nbsp; 1.15% | &nbsp;&nbsp;&nbsp;&nbsp; 0.75% | 128%  |
| Year ended August 31, 2025 | $75.00 | &nbsp;&nbsp;&nbsp;&nbsp;0.91 | &nbsp;&nbsp;&nbsp;&nbsp;14.90 | &nbsp;&nbsp;&nbsp;&nbsp;15.81 | &nbsp;&nbsp; (2.23) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (2.23) | $88.58 | 21.44% | $8776 | &nbsp;&nbsp; 2.45% | &nbsp;&nbsp;&nbsp; 1.22% | &nbsp;&nbsp;&nbsp;&nbsp; 1.14% | &nbsp;&nbsp; 2.38% | &nbsp;&nbsp; 1.15% | &nbsp;&nbsp;&nbsp;&nbsp; 1.21% | 820%  |
| Year ended August 31, 2024 | $57.69 | &nbsp;&nbsp;&nbsp;&nbsp;1.23 | &nbsp;&nbsp;&nbsp;&nbsp;16.22 | &nbsp;&nbsp;&nbsp;&nbsp;17.45 | &nbsp;&nbsp; (0.14) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (0.14) | $75.00 | 30.30% | $12831 | &nbsp;&nbsp; 1.88% | &nbsp;&nbsp;&nbsp; 1.25% | &nbsp;&nbsp;&nbsp;&nbsp; 1.89% | &nbsp;&nbsp; 1.78% | &nbsp;&nbsp; 1.15% | &nbsp;&nbsp;&nbsp;&nbsp; 1.99% | 1,132%  |
| Year ended August 31, 2023 | $44.25 | &nbsp;&nbsp;&nbsp;&nbsp;0.73 | &nbsp;&nbsp;&nbsp;&nbsp;12.71 | &nbsp;&nbsp;&nbsp;&nbsp;13.44 | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | $57.69 | 30.37% | $13993 | &nbsp;&nbsp; 2.30% | &nbsp;&nbsp;&nbsp; 1.19% | &nbsp;&nbsp;&nbsp;&nbsp; 1.47% | &nbsp;&nbsp; 2.26% | &nbsp;&nbsp; 1.15% | &nbsp;&nbsp;&nbsp;&nbsp; 1.51% | 1,037%  |
| Year ended August 31, 2022 | $65.56 | &nbsp;&nbsp; (0.67) | &nbsp;&nbsp;&nbsp; (15.86) | &nbsp;&nbsp; (16.53) | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (4.78) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (4.78) | $44.25 | -27.50% | $7281 | &nbsp;&nbsp; 1.77% | &nbsp;&nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; (1.15)% | &nbsp;&nbsp; 1.57% | &nbsp;&nbsp; 1.15% | &nbsp;&nbsp;&nbsp;&nbsp; (0.95)% | 0%  |
| Year ended August 31, 2021 | $52.59 | &nbsp;&nbsp; (0.61) | &nbsp;&nbsp;&nbsp;&nbsp;17.67 | &nbsp;&nbsp;&nbsp;&nbsp;17.06 | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (4.09) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (4.09) | $65.56 | 34.93% | $20940 | &nbsp;&nbsp; 1.50% | &nbsp;&nbsp;&nbsp; 1.15% | &nbsp;&nbsp;&nbsp;&nbsp; (1.13)% | &nbsp;&nbsp; 1.50% | &nbsp;&nbsp; 1.15% | &nbsp;&nbsp;&nbsp;&nbsp; (1.13)% | 0%  |

---

The accompanying notes are an integral part of these financial statements.

16<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**Direxion Funds** 

**Financial Highlights** 

**February 28, 2026(Continued)** 

---

| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  |  |  |  |  |  |  | **SUPPLEMENTAL DATA AND RATIOS:**  | **SUPPLEMENTAL DATA AND RATIOS:**  | **SUPPLEMENTAL DATA AND RATIOS:**  | **SUPPLEMENTAL DATA AND RATIOS:**  | **SUPPLEMENTAL DATA AND RATIOS:**  | **SUPPLEMENTAL DATA AND RATIOS:**  | **SUPPLEMENTAL DATA AND RATIOS:**  | |
|  | **Net Asset** <br>**Value,** <br>**Beginning** <br>**of** <br>**Period/**<br>**Year** | **Net** <br>**Investment** <br>**Income** <br>(Loss)<sup>1</sup> | **Net** <br>**Realized** <br>**and** <br>**Unrealized** <br>**Gain (Loss)** <br>**on** <br>**Investments<sup>2</sup>** | **Net**<br>**Increase**<br>(Decrease)<br>**in Net Asset**<br>**Value**<br>**Resulting**<br>**from**<br>**Operations** | **Dividends**<br>**from Net**<br>**Investment**<br>**Income** | **Distributions**<br>**from**<br>**Realized**<br>**Capital Gains** | **Return of**<br>**Capital**<br>**Distribution** | **Total**<br>**Distributions** | **Net** <br>**Asset** <br>**Value,** <br>**End of** <br>**Period/**<br>**Year** | **Total** <br>**Return<sup>3</sup>** | **Net Assets,**<br>**End of**<br>**Year**<br>**(,000)** | **Total** <br>**Expenses<sup>4</sup>** | **Net** <br>**Expenses<sup>4,5</sup>** | **Net** <br>**Investment** <br>**Income (Loss)** <br>**after** <br>**Expense** <br>**Reimbursement/**<br>**Recoupment<sup>4</sup>** | **Total** <br>**Expenses** | **Net** <br>**Expenses<sup>5</sup>** | **Net** <br>**Investment** <br>**Income (Loss)** <br>**after** <br>**Expense** <br>**Reimbursement/**<br>**Recoupment** | <br>**Portfolio** <br>**Turnover** <br>**Rate<sup>6</sup>**  |
| **Direxion Monthly NASDAQ-100 Bull 1.75X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.75X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.75X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.75X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.75X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.75X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.75X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.75X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.75X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.75X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.75X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.75X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.75X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.75X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.75X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.75X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.75X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.75X Fund**  | **Direxion Monthly NASDAQ-100 Bull 1.75X Fund**  |
|  Six months ended February 28, 2026 (Unaudited) | $105.51 | &nbsp;&nbsp;&nbsp;&nbsp;0.16 | &nbsp;&nbsp;&nbsp;&nbsp;10.36 | &nbsp;&nbsp;&nbsp;&nbsp;10.52 | &nbsp;&nbsp; (1.03) | &nbsp;&nbsp;&nbsp; (14.29) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (15.32) | $100.71 | 9.08% | $505644 | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 0.29% | &nbsp;&nbsp; 1.30% | &nbsp;&nbsp; 1.30% | &nbsp;&nbsp;&nbsp;&nbsp; 0.34% | 0%  |
| Year ended August 31, 2025 | $82.62 | &nbsp;&nbsp;&nbsp;&nbsp;0.87 | &nbsp;&nbsp;&nbsp;&nbsp;22.89 | &nbsp;&nbsp;&nbsp;&nbsp;23.76 | &nbsp;&nbsp; (0.87) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (0.87) | $105.51 | 28.94% | $531023 | &nbsp;&nbsp; 1.37% | &nbsp;&nbsp;&nbsp; 1.37% | &nbsp;&nbsp;&nbsp;&nbsp; 0.96% | &nbsp;&nbsp; 1.32% | &nbsp;&nbsp; 1.32% | &nbsp;&nbsp;&nbsp;&nbsp; 1.01% | 12%  |
| Year ended August 31, 2024 | $58.98 | &nbsp;&nbsp;&nbsp;&nbsp;0.78 | &nbsp;&nbsp;&nbsp;&nbsp;23.16 | &nbsp;&nbsp;&nbsp;&nbsp;23.94 | &nbsp;&nbsp; (0.30) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (0.30) | $82.62 | 47.40% | $445946 | &nbsp;&nbsp; 1.42% | &nbsp;&nbsp;&nbsp; 1.44% | &nbsp;&nbsp;&nbsp;&nbsp; 1.12% | &nbsp;&nbsp; 1.33% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 1.21% | 0%  |
| Year ended August 31, 2023 | $42.30 | &nbsp;&nbsp;&nbsp;&nbsp;0.59 | &nbsp;&nbsp;&nbsp;&nbsp;16.09 | &nbsp;&nbsp;&nbsp;&nbsp;16.68 | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | $58.98 | 39.42% | $360701 | &nbsp;&nbsp; 1.43% | &nbsp;&nbsp;&nbsp; 1.41% | &nbsp;&nbsp;&nbsp;&nbsp; 1.32% | &nbsp;&nbsp; 1.37% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 1.38% | 0%  |
| Year ended August 31, 2022 | $81.98 | &nbsp;&nbsp; (0.62) | &nbsp;&nbsp;&nbsp; (29.72) | &nbsp;&nbsp; (30.34) | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (9.34) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (9.34) | $42.30 | -42.34% | $273423 | &nbsp;&nbsp; 1.33% | &nbsp;&nbsp;&nbsp; 1.34% | &nbsp;&nbsp;&nbsp;&nbsp; (0.99)% | &nbsp;&nbsp; 1.32% | &nbsp;&nbsp; 1.33% | &nbsp;&nbsp;&nbsp;&nbsp; (0.98)% | 0%  |
| Year ended August 31, 2021 | $57.31 | &nbsp;&nbsp; (0.80) | &nbsp;&nbsp;&nbsp;&nbsp;31.53 | &nbsp;&nbsp;&nbsp;&nbsp;30.73 | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (6.06) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (6.06) | $81.98 | 59.47% | $595324 | &nbsp;&nbsp; 1.33% | &nbsp;&nbsp;&nbsp; 1.36% | &nbsp;&nbsp;&nbsp;&nbsp; (1.29)% | &nbsp;&nbsp; 1.32% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; (1.28)% | 0%  |
| **Direxion Monthly S&P 500 Bull 1.75X Fund**  | **Direxion Monthly S&P 500 Bull 1.75X Fund**  | **Direxion Monthly S&P 500 Bull 1.75X Fund**  | **Direxion Monthly S&P 500 Bull 1.75X Fund**  | **Direxion Monthly S&P 500 Bull 1.75X Fund**  | **Direxion Monthly S&P 500 Bull 1.75X Fund**  | **Direxion Monthly S&P 500 Bull 1.75X Fund**  | **Direxion Monthly S&P 500 Bull 1.75X Fund**  | **Direxion Monthly S&P 500 Bull 1.75X Fund**  | **Direxion Monthly S&P 500 Bull 1.75X Fund**  | **Direxion Monthly S&P 500 Bull 1.75X Fund**  | **Direxion Monthly S&P 500 Bull 1.75X Fund**  | **Direxion Monthly S&P 500 Bull 1.75X Fund**  | **Direxion Monthly S&P 500 Bull 1.75X Fund**  | **Direxion Monthly S&P 500 Bull 1.75X Fund**  | **Direxion Monthly S&P 500 Bull 1.75X Fund**  | **Direxion Monthly S&P 500 Bull 1.75X Fund**  | **Direxion Monthly S&P 500 Bull 1.75X Fund**  | **Direxion Monthly S&P 500 Bull 1.75X Fund**  |
|  Six months ended February 28, 2026 (Unaudited) | $74.74 | &nbsp;&nbsp;&nbsp;&nbsp;0.37 | &nbsp;&nbsp;&nbsp;&nbsp;6.87 | &nbsp;&nbsp;&nbsp;&nbsp;7.24 | &nbsp;&nbsp; (0.89) | &nbsp;&nbsp;&nbsp; (4.90) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (5.79) | $76.19 | 9.63% | $121239 | &nbsp;&nbsp; 1.40% | &nbsp;&nbsp;&nbsp; 1.43% | &nbsp;&nbsp;&nbsp;&nbsp; 0.95% | &nbsp;&nbsp; 1.32% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 0.87% | 0%  |
| Year ended August 31, 2025 | $68.97 | &nbsp;&nbsp;&nbsp;&nbsp;0.92 | &nbsp;&nbsp;&nbsp;&nbsp;12.74 | &nbsp;&nbsp;&nbsp;&nbsp;13.66 | &nbsp;&nbsp; (1.20) | &nbsp;&nbsp;&nbsp; (6.69) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (7.89) | $74.74 | 20.92% | $122155 | &nbsp;&nbsp; 1.41% | &nbsp;&nbsp;&nbsp; 1.43% | &nbsp;&nbsp;&nbsp;&nbsp; 1.36% | &nbsp;&nbsp; 1.33% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 1.44% | 0%  |
| Year ended August 31, 2024 | $49.22 | &nbsp;&nbsp;&nbsp;&nbsp;0.96 | &nbsp;&nbsp;&nbsp;&nbsp;19.14 | &nbsp;&nbsp;&nbsp;&nbsp;20.10 | &nbsp;&nbsp; (0.35) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (0.35) | $68.97 | 41.07% | $119743 | &nbsp;&nbsp; 1.51% | &nbsp;&nbsp;&nbsp; 1.53% | &nbsp;&nbsp;&nbsp;&nbsp; 1.69% | &nbsp;&nbsp; 1.33% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 1.87% | 0%  |
| Year ended August 31, 2023 | $40.98 | &nbsp;&nbsp;&nbsp;&nbsp;0.65 | &nbsp;&nbsp;&nbsp;&nbsp;7.59 | &nbsp;&nbsp;&nbsp;&nbsp;8.24 | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | $49.22 | 20.11% | $83188 | &nbsp;&nbsp; 1.51% | &nbsp;&nbsp;&nbsp; 1.42% | &nbsp;&nbsp;&nbsp;&nbsp; 1.54% | &nbsp;&nbsp; 1.44% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 1.61% | 0%  |
| Year ended August 31, 2022 | $59.67 | &nbsp;&nbsp; (0.50) | &nbsp;&nbsp;&nbsp; (13.39) | &nbsp;&nbsp; (13.89) | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (4.80) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (4.80) | $40.98 | -25.79% | $85872 | &nbsp;&nbsp; 1.36% | &nbsp;&nbsp;&nbsp; 1.36% | &nbsp;&nbsp;&nbsp;&nbsp; (0.96)% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; (0.95)% | 0%  |
| Year ended August 31, 2021 | $37.00 | &nbsp;&nbsp; (0.55) | &nbsp;&nbsp;&nbsp;&nbsp;23.93 | &nbsp;&nbsp;&nbsp;&nbsp;23.38 | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (0.71) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (0.71) | $59.67 | 64.19% | $124964 | &nbsp;&nbsp; 1.33% | &nbsp;&nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; (1.22)% | &nbsp;&nbsp; 1.33% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; (1.22)% | 0%  |
| **Direxion Monthly Small Cap Bull 1.75X Fund**  | **Direxion Monthly Small Cap Bull 1.75X Fund**  | **Direxion Monthly Small Cap Bull 1.75X Fund**  | **Direxion Monthly Small Cap Bull 1.75X Fund**  | **Direxion Monthly Small Cap Bull 1.75X Fund**  | **Direxion Monthly Small Cap Bull 1.75X Fund**  | **Direxion Monthly Small Cap Bull 1.75X Fund**  | **Direxion Monthly Small Cap Bull 1.75X Fund**  | **Direxion Monthly Small Cap Bull 1.75X Fund**  | **Direxion Monthly Small Cap Bull 1.75X Fund**  | **Direxion Monthly Small Cap Bull 1.75X Fund**  | **Direxion Monthly Small Cap Bull 1.75X Fund**  | **Direxion Monthly Small Cap Bull 1.75X Fund**  | **Direxion Monthly Small Cap Bull 1.75X Fund**  | **Direxion Monthly Small Cap Bull 1.75X Fund**  | **Direxion Monthly Small Cap Bull 1.75X Fund**  | **Direxion Monthly Small Cap Bull 1.75X Fund**  | **Direxion Monthly Small Cap Bull 1.75X Fund**  | **Direxion Monthly Small Cap Bull 1.75X Fund**  |
|  Six months ended February 28, 2026 (Unaudited) | $90.37 | &nbsp;&nbsp;&nbsp;&nbsp;0.39 | &nbsp;&nbsp;&nbsp;&nbsp;16.03 | &nbsp;&nbsp;&nbsp;&nbsp;16.42 | &nbsp;&nbsp; (1.98) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (1.98) | $104.81 | 18.34% | $9227 | &nbsp;&nbsp; 1.83% | &nbsp;&nbsp;&nbsp; 1.40% | &nbsp;&nbsp;&nbsp;&nbsp; 0.79% | &nbsp;&nbsp; 1.78% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 0.84% | 41%  |
| Year ended August 31, 2025 | $86.76 | &nbsp;&nbsp;&nbsp;&nbsp;1.27 | &nbsp;&nbsp;&nbsp;&nbsp;3.54 | &nbsp;&nbsp;&nbsp;&nbsp;4.81 | &nbsp;&nbsp; (1.20) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (1.20) | $90.37 | 5.65% | $9248 | &nbsp;&nbsp; 1.83% | &nbsp;&nbsp;&nbsp; 1.46% | &nbsp;&nbsp;&nbsp;&nbsp; 1.54% | &nbsp;&nbsp; 1.72% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 1.65% | 19%  |
| Year ended August 31, 2024 | $71.53 | &nbsp;&nbsp;&nbsp;&nbsp;1.24 | &nbsp;&nbsp;&nbsp;&nbsp;14.55 | &nbsp;&nbsp;&nbsp;&nbsp;15.79 | &nbsp;&nbsp; (0.56) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (0.56) | $86.76 | 22.18% | $14733 | &nbsp;&nbsp; 1.66% | &nbsp;&nbsp;&nbsp; 1.50% | &nbsp;&nbsp;&nbsp;&nbsp; 1.69% | &nbsp;&nbsp; 1.51% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 1.84% | 35%  |
| Year ended August 31, 2023 | $71.90 | &nbsp;&nbsp;&nbsp;&nbsp;1.07 | &nbsp;&nbsp;&nbsp; (1.44) | &nbsp;&nbsp; (0.37) | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | $71.53 | -0.52% | $11017 | &nbsp;&nbsp; 1.78% | &nbsp;&nbsp;&nbsp; 1.41% | &nbsp;&nbsp;&nbsp;&nbsp; 1.54% | &nbsp;&nbsp; 1.72% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; 1.60% | 24%  |
| Year ended August 31, 2022 | $115.43 | &nbsp;&nbsp; (0.96) | &nbsp;&nbsp;&nbsp; (41.64) | &nbsp;&nbsp; (42.60) | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (0.93) | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; (0.93) | $71.90 | -37.17% | $10577 | &nbsp;&nbsp; 1.60% | &nbsp;&nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; (1.01)% | &nbsp;&nbsp; 1.60% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; (1.01)% | 33%  |
| Year ended August 31, 2021 | $56.90 | &nbsp;&nbsp; (1.26) | &nbsp;&nbsp;&nbsp;&nbsp;59.79 | &nbsp;&nbsp;&nbsp;&nbsp;58.53 | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | $115.43 | 102.87% | $23514 | &nbsp;&nbsp; 1.54% | &nbsp;&nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; (1.28)% | &nbsp;&nbsp; 1.54% | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp;&nbsp; (1.28)% | 0% |

---

<sup>1</sup> Net investment income (loss) per share represents net investment income divided by the daily average shares of beneficial interest outstanding throughout each year.

<sup>2</sup> Due to the timing of sales and redemptions of capital shares, the net realized and unrealized gain (loss) per share will not equal the Fund's changes in net realized and unrealized gain (loss) on investments and swaps for the period.

<sup>3</sup> Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at the net asset value during the period and redemption on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been reimbursed by the investment adviser.

<sup>4</sup> Includes interest expense and extraordinary expense which is comprised of excise tax expense.

<sup>5</sup> Net expenses include effects of any reimbursement or recoupment.

<sup>6</sup> Portfolio turnover is not annualized and is calculated without regard to short-term securities that have a maturity of less than one year and does not include effects of turnover of the swap contracts portfolio.

<sup>7</sup> Amount represents less than $0.005 per share. 

The accompanying notes are an integral part of these financial statements.

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**[**TABLE OF CONTENTS**](#TOC)**

**DIREXION FUNDS** 

**NOTES TO THE FINANCIAL STATEMENTS** 

**February 28, 2026 (Unaudited)** 

1. ORGANIZATION

Direxion Funds (the "Trust") was organized as a Massachusetts Business Trust on June 6, 1997 and is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company issuing its shares in series, each series representing a distinct portfolio with its own investment objective and policies. The Trust currently has eight series, of which seven are included in this report: Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund, Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund, Direxion Monthly High Yield Bull 1.2X Fund, Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.25X Fund, Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.75X Fund, Direxion Monthly S&P 500<sup>®</sup> Bull 1.75X Fund and Direxion Monthly Small Cap Bull 1.75X Fund (each a "Fund" and collectively, the "Funds"). Each Fund is a non-diversified series of the Trust pursuant to the 1940 Act. The seven Funds included in this report offer only Investor Class shares.

Rafferty Asset Management, LLC (the "Adviser") serves as investment adviser to the Funds. The Adviser has registered as a commodity pool operator ("CPO") and all Funds presented in this report are considered commodity pools under the Commodity Exchange Act (the "CEA"). Accordingly, the Adviser is subject to registration and regulation as a CPO under the CEA and must comply with various regulatory requirements under the CEA and the rules and regulations of the Commodity Futures Trading Commission and the National Futures Association, including investor protection requirements, antifraud provisions, disclosure requirements and reporting and recordkeeping requirements.

The Funds' investment objectives are to seek monthly investment results, before fees and expenses that correspond to the calendar month performance of a particular index or benchmark. The Funds with the word "Bull" in their name attempt to provide investment results that correlate positively to the return of an index or benchmark. The Fund with the word "Bear" in its name attempts to provide investment results that correlate negatively to the return of an index or benchmark.

---

| | | |
|:---|:---|:---|
| **Fund** | **Index or Benchmark** | **Monthly Target**  |
| Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund | ICE U.S. Treasury 7-10 Year Bond Index | -175%  |
| Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund | ICE U.S. Treasury 7-10 Year Bond Index | 175% |
| Direxion Monthly High Yield Bull 1.2X Fund | Solactive High Yield Beta Index | 120%  |
| Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.25X Fund | NASDAQ-100<sup>®</sup> Index | 125%  |
| Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.75X Fund | NASDAQ-100<sup>®</sup> Index | 175%  |
| Direxion Monthly S&P 500<sup>®</sup> Bull 1.75X Fund | S&P 500<sup>®</sup> Index | 175%  |
| Direxion Monthly Small Cap Bull 1.75X Fund | Russell 2000<sup>®</sup> Index | 175% |

---

The Trust has evaluated the structure, objective and activities of the Funds and determined that they meet the characteristics of an investment company. As such, these financial statements have applied the guidance as set forth in the Financial Accounting Standards Board ("FASB") Accounting Standards Codifications ("ASC") 946, "Financial Services - Investment Companies".

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with U.S. generally accepted accounting principles ("GAAP").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Cash Equivalents – The Funds consider investments in the U.S Bank Money Market Deposit Account, a U.S. dollar-denominated deposit account offered through U.S. Bank, to be a cash equivalent. The Funds are exposed to the credit risk of U.S. Bank through the holding of this cash equivalent. This cash equivalent is presented on the Statements of Assets and Liabilities as "Cash equivalents" and were classified as Level 1 assets as of February 28, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Investment Valuation – The Net Asset Value ("NAV") per share of each Fund is determined daily, as of the close of regular trading on the New York Stock Exchange ("NYSE") (normally at 4:00 p.m. Eastern time ("Valuation Time")), each day the NYSE is open for business. A security listed or traded on an exchange, domestic or foreign, is valued at its last sales price on the principal exchange on which it is traded prior to the time when assets are valued. If

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**DIREXION FUNDS** 

**NOTES TO THE FINANCIAL STATEMENTS** 

**February 28, 2026 (Unaudited)(Continued)** 

no sale is reported at that time, the mean of the last bid and asked prices is used. On days that the Securities Industry and Financial Markets Association ("SIFMA") recommends that the bond markets close all day, the Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund, Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund and the Direxion Monthly High Yield Bull 1.2X Fund (the "Fixed Income Funds") do not calculate their NAVs even if the NYSE is open for business. Similarly, on days that SIFMA recommends that the bond markets close early, each of the Fixed Income Funds calculates its NAV as of the time of the recommended close, usually 2:00 p.m. Eastern Time, rather than the close of regular trading on the NYSE. Securities primarily traded on the NASDAQ<sup>®</sup> Global Market ("NASDAQ") for which market quotations are readily available are valued using the NASDAQ<sup>®</sup> Official Closing Price ("NOCP") provided by NASDAQ each business day. Over-the-counter ("OTC") securities held by a Fund are valued at the last sales price or, if no sales price is reported, the mean of the last bid and asked price is used. Investments in open-end mutual funds, including money market funds, are valued at their respective quoted NAV on the valuation date. Swap contracts are valued using the closing price of the underlying reference entity or the closing value of the underlying reference index. The Funds valued their investments in money market funds based on their daily net asset values. Futures contracts are valued at the settlement price established on the exchange on which they are traded, if that settlement price reflects trading prior to the Valuation Time. If the settlement price established by the exchange reflects trading after the Valuation Time, then the last sales price prior to Valuation Time will be used. Securities, swaps or futures contract for which reliable market quotations are not readily available, the Fund's pricing service does not provide a valuation for such securities, the Fund's pricing service provides valuation that in the judgment of the Adviser does not represent fair value, or the Fund or Adviser believes the market price is stale, are fair valued as determined by the Adviser under the supervision of the Board of Trustees. Additionally, the Adviser will monitor developments in the marketplace for significant events that may affect the value of those securities whose closing prices were established before the Valuation Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Swap Contracts – Each Fund may enter into total return swap contacts. Standard total return swap contracts are between two parties that agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or instruments. The gross amount to be exchanged is calculated with respect to a "notional amount" (i.e. the return on or increase in value of a particular dollar amount invested in a "basket" of securities representing a particular index or industry sector). A Fund enters into master netting agreements with the counterparty. These agreements calculate the obligations of the parties on a "net basis". Consequently, a Fund's current obligations under a swap agreement generally will be equal to the net amount to be paid or received under the agreement based on the relative value of the positions held by each party. A Fund's obligations are accrued daily and offset by any amounts owed to the Fund. However, a Fund does not offset the fair value amounts of the swap contract and the related collateral on the Statement of Assets and Liabilities arising from swap contracts executed with the same counterparty under such master netting agreements.

In a "long" total return swap agreement, the counterparty will generally agree to pay the Fund the amount, if any, by which the notional amount of the swap contract would have increased in value if the Fund had been invested in the particular securities, plus dividends that would have been received on those securities. The Fund will agree to pay the counterparty a floating rate of interest (e.g., a SOFR based rate) on the notional amount of the swap contract plus the amount, if any, by which the notional amount would have decreased in value had it been invested in such securities plus, in certain instances, commissions or trading spreads on the notional amounts. Thus, the return on the swap contract should be the gain or loss on the notional amount plus dividends on the securities less the interest and commission paid by the Fund on the notional amount. Payments may be made at the conclusion of the contract or periodically during its term. In certain instances, market factors such as the interest rate environment and the demand to borrow the securities underlying the swap agreement can cause a scenario in which the counterparty will pay the Fund interest. These swap contracts do not include the delivery of securities by the Funds to the counterparty. The net amount of the excess, if any, of the Fund's obligations owed over its entitlement with respect to each swap is accrued on a daily basis and an amount of cash or liquid assets having an aggregate net asset value at least equal to such accrued excess is maintained in a segregated account by the Funds' custodian. Until a swap contract is settled in cash, the gain or loss on the notional amount plus dividends on the securities less the interest paid by the Fund on the notional amount are recorded as "unrealized appreciation or depreciation on swaps" and when cash is exchanged, the gain or loss is recorded as "realized gains or losses on swaps."

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**DIREXION FUNDS** 

**NOTES TO THE FINANCIAL STATEMENTS** 

**February 28, 2026 (Unaudited)(Continued)** 

Each Fund may enter into swap contracts that provide the opposite return of the underlying benchmark or security ("short" the index or security). The operations are similar to that of the swaps disclosed above except that the counterparty pays interest to the Fund on the notional amount outstanding and the dividends on the underlying securities reduce the return of the swap. However, in certain instances, market factors such as the interest rate environment and the demand to borrow the securities underlying the swap agreement can cause a scenario in which the Fund will pay the counterparty interest. These amounts are netted with any unrealized appreciation or depreciation to determine the value of the swap. The Funds will typically enter into total return swap agreements to obtain leverage in order to meet their investment objectives.

FASB Accounting Standards Update No. 2013-01 "Disclosures about Offsetting Assets and Liabilities" ("ASU 2013–01"), requires entities to disclose (i) gross and net information about both instruments and transactions eligible for offset in the financial statements, and (ii) instruments and transactions subject to an agreement similar to a master netting agreement. ASU 2013-01 is limited in scope to recognized derivative instruments accounted for under ASC 815, "Derivatives and Hedging", to the extent they are offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement.

In order to better define its contractual rights and to secure rights that will help a Fund mitigate its counterparty risk, a Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with its counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs over-the-counter derivatives ("OTC"), including swap contracts, and typically contains, among other things, collateral posting terms, netting and rights of set-off provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, a Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments' payables and receivables to create a single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

Collateral requirements generally differ by type of derivative. Collateral terms are contract-specific for OTC derivatives (e.g. swaps). Generally, for transactions traded under an ISDA Master Agreement, the collateral requirements are calculated by netting the marked-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by a Fund and the counterparty. Generally, the amount of collateral due from or to the counterparty must exceed a minimum transfer amount threshold before a transfer is required to be made. To the extent amounts due to a Fund from its derivative counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance. Interest earned on collateral pledged to a counterparty is presented as part of Interest income on the Statements of Operations. Interest incurred on collateral received from a counterparty is presented as Interest expense on the Statements of Operations.

For financial reporting purposes, the Funds elect to not offset assets and liabilities subject to an ISDA Master Agreement, if any, in the Statements of Assets and Liabilities. Therefore, all qualifying transactions are presented on a gross basis in the Statements of Assets and Liabilities. As of February 28, 2026, the impact of netting of assets and liabilities and the offsetting of collateral pledged or received based on contractual netting/set-off provisions in the ISDA Master Agreement are detailed in the following pages.

In the event of the counterparty's default, bankruptcy, or any other event for which the counterparty cannot meet its obligations, a Fund bears the risk of loss equal to the amount of the daily appreciation owed to the Fund. This obligation represents the daily gain accrued to the Fund from the close of business day prior to this event to the day on which this event occurs and the counterparty can no longer meet its obligations. A Fund will enter into swap agreements only with large, well-capitalized and established financial institutions. The creditworthiness of each of the firm that is a party to a swap agreement is monitored by the Adviser. Shareholders may obtain counterparty financial statements at www.sec.gov. Swap contracts are subject to credit risk. Credit risk occurs when the financial condition of an issuer of a security or instrument may cause it to default or become unable to pay interest or principal due on the security. The counterparty to a swap contract might default on its obligations. In addition, the Funds have agreements with certain counterparties with which they trade swap contracts that contain credit risk-related contingent features that could be triggered subject to certain circumstances. Such circumstances include agreed upon net asset value and performance-based thresholds. The maximum exposure to the Funds in regard to potential counterparty default and credit-risk related

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**DIREXION FUNDS** 

**NOTES TO THE FINANCIAL STATEMENTS** 

**February 28, 2026 (Unaudited)(Continued)** 

contingent features at February 28, 2026 is detailed in the following table. If such credit risk-related contingencies were triggered the counterparties would have the option to terminate any positions open under the master netting agreement.

**Description: Swap Contract** 

**Counterparty: Bank of America Merrill Lynch** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Fund Name** | **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Liabilities:**  | **Liabilities:**  | **Liabilities:**  | **Liabilities:**  |
| **Fund Name** | **Gross** <br>**Amounts of** <br>**Recognized** <br>**Assets** | **Gross Amounts not offset** <br>**in the Statement of** <br>**Asset and Liabilities** | **Gross Amounts not offset** <br>**in the Statement of** <br>**Asset and Liabilities** | **Net** <br>**Amount<sup>2</sup>** | **Gross** <br>**Amounts of** <br>**Recognized** <br>**Liabilities** | **Gross Amounts not offset** <br>**in the Statement of** <br>**Asset and Liabilities** | **Gross Amounts not offset** <br>**in the Statement of** <br>**Asset and Liabilities** | **Net** <br>**Amount**  |
| **Fund Name** | **Gross** <br>**Amounts of** <br>**Recognized** <br>**Assets** | **Financial** <br>**Instruments** | **Collateral** <br>**Received** | **Net** <br>**Amount<sup>2</sup>** | **Gross** <br>**Amounts of** <br>**Recognized** <br>**Liabilities** | **Financial** <br>**Instruments** | **Collateral** <br>**Pledged**  | **Net** <br>**Amount**  |
|  Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund | &nbsp;&nbsp; $— | &nbsp;&nbsp;&nbsp; $— | $— | $— | $7409 | &nbsp;&nbsp; $— | $7409<sup>1</sup> | $—  |
|  Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund | &nbsp;&nbsp; 65131 | &nbsp;&nbsp;&nbsp; — |  | 65131 |  | &nbsp;&nbsp; — |  | —  |
|  Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.25X Fund | &nbsp;&nbsp; 8839 | &nbsp;&nbsp;&nbsp; — |  | 8839 |  | &nbsp;&nbsp; — |  | —  |
|  Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.75X Fund | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — |  |  | 8028967 | &nbsp;&nbsp; — | 8028967<sup>1</sup> | —  |
|  Direxion Monthly S&P 500<sup>®</sup> Bull 1.75X Fund | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — |  |  | 680094 | &nbsp;&nbsp; — | 680094<sup>1</sup> | —  |
|  Direxion Monthly Small Cap Bull 1.75X Fund | &nbsp;&nbsp; 51842 | &nbsp;&nbsp;&nbsp; — | 51842<sup>1</sup> |  |  | &nbsp;&nbsp; — |  |  |

---

<sup>1</sup> The amount of collateral shown has been limited such that the net amount cannot be less than zero.

<sup>2</sup> The amount shown is the maximum credit exposure of the Fund for the corresponding counterparty. 

**Description: Swap Contract** 

**Counterparty: UBS Securities LLC** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Fund Name** | **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Liabilities:**  | **Liabilities:**  | **Liabilities:**  | **Liabilities:**  |
| **Fund Name** | **Gross** <br>**Amounts of** <br>**Recognized** <br>**Assets** | **Gross Amounts not offset** <br>**in the Statement of** <br>**Asset and Liabilities** | **Gross Amounts not offset** <br>**in the Statement of** <br>**Asset and Liabilities** | **Net** <br>**Amount<sup>2</sup>** | **Gross** <br>**Amounts of** <br>**Recognized** <br>**Liabilities** | **Gross Amounts not offset** <br>**in the Statement of** <br>**Asset and Liabilities** | **Gross Amounts not offset** <br>**in the Statement of** <br>**Asset and Liabilities** | **Net** <br>**Amount**  |
| **Fund Name** | **Gross** <br>**Amounts of** <br>**Recognized** <br>**Assets** | **Financial** <br>**Instruments** | **Collateral** <br>**Received** | **Net** <br>**Amount<sup>2</sup>** | **Gross** <br>**Amounts of** <br>**Recognized** <br>**Liabilities** | **Financial** <br>**Instruments** | **Collateral** <br>**Pledged**  | **Net** <br>**Amount**  |
|  Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund | $— | &nbsp;&nbsp;&nbsp; $— | &nbsp;&nbsp; $— | $— | &nbsp;&nbsp;&nbsp; $1222 | &nbsp;&nbsp;&nbsp; $— | &nbsp;&nbsp; $1222<sup>1</sup> | $—  |
|  Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund | 22090 | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp; — | 22090 | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp; — | —  |
|  Direxion Monthly High Yield Bull 1.2X Fund |  | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp; — |  | &nbsp;&nbsp;&nbsp; 4284 | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp; 4284<sup>1</sup> | —  |
|  Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.25X Fund | 5540 | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp; — | 5540 | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp; — | —  |
|  Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.75X Fund | 1651419 | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp; — | 1651419 | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp; — | —  |
|  Direxion Monthly S&P 500<sup>®</sup> Bull 1.75X Fund | 1253965 | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp; — | 1253965 | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp; — | —  |
|  Direxion Monthly Small Cap Bull 1.75X Fund | 284493 | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp; — | 284493 | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp; — |  |

---

<sup>1</sup> The amount of collateral shown has been limited such that the net amount cannot be less than zero.

<sup>2</sup> The amount shown is the maximum credit exposure of the Fund for the corresponding counterparty. The amounts are further offset by a netting arrangement with counterparty in which the variation margin and initial margin are offset daily. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Investment Transactions – Investment transactions are recorded on trade date. The Funds determine the gain or loss realized from investment transactions by comparing the identified cost, which is the same basis used for federal income tax purposes, with the net sales proceeds.

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**DIREXION FUNDS** 

**NOTES TO THE FINANCIAL STATEMENTS** 

**February 28, 2026 (Unaudited)(Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Investments in Other Investment Companies – A Fund may invest in another ETF or mutual fund, collectively defined as "investment companies". As a result, Fund shareholders indirectly bear the Fund's proportionate share of fees and expenses paid by shareholders of the other investment company, in addition to the fees and expenses Fund shareholders bear in connection with the Fund's own operations. These costs are disclosed in the Fund's prospectus as Acquired Fund Fees and Expenses. Shareholders may obtain the financial statements of these investment companies at www.sec.gov.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) Federal Income Taxes – Each Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, necessary to qualify as a regulated investment company and to make the requisite distributions of income and capital gains to its shareholders sufficient to relieve it from all or substantially all Federal income taxes and excise taxes. No provision for Federal income taxes has been made in the Funds' financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) Income and Expenses – Dividend income is recorded on the ex-dividend date. Interest income is recognized on an accrual basis. Expenses are charged to the Funds daily. Expenses are computed based on each Fund's respective average daily net assets. For additional discussion on expenses, refer to Note 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) Distributions to Shareholders – Each Fund pays dividends from net investment income and distributes net realized capital gains, if any, at least annually. Income and capital gain distributions are determined in accordance with U.S. Federal income tax regulations, which may differ from GAAP. Certain Funds also utilize earnings and profits distributed to shareholders on redemptions of shares as part of the dividends paid deduction. Distributions to shareholders are recorded on the ex-dividend date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Guarantees and Indemnifications – In the ordinary course of business, the Funds enter into contracts that contain a variety of indemnification provisions pursuant to which the Funds agree to indemnify third parties upon occurrence of specified events. The Funds' maximum exposure relating to these indemnification agreements is unknown. However, the Funds have not had prior claims or losses in connection with these provisions and believe the risk of loss is remote.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j) Operating Segments – The Funds have adopted FASB Accounting Standards Update 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. Adoption of the enhanced standard impacted financial statement disclosures only and did not affect the Funds' financial position or results of operations. Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their operating results regularly reviewed by a chief operating decision maker ("CODM") when assessing segment performance and making decisions about segment resources. Each Fund included herein is deemed to be an individual reporting segment and Officers of the Trust collectively act as CODM. The CODM monitors the operating results of the Trust as a whole and each Fund's long-term strategic asset allocation is guided by each Fund's investment objective and principal investment strategies as described in its prospectus and executed by the Adviser. The financial information provided to and reviewed by the CODM is consistent with that presented in the Funds' financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k) Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

3. INCOME TAX AND DISTRIBUTION INFORMATION

The tax character of distributions during the six months ended February 28, 2026 and August 31, 2025 are listed below.

The tax character of distributions to shareholders made during the periods may differ from their ultimate characterization for U.S. Federal income tax purposes.

22<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**DIREXION FUNDS** 

**NOTES TO THE FINANCIAL STATEMENTS** 

**February 28, 2026 (Unaudited)(Continued)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Funds** | **Six Months Ended** <br>**February 28, 2026 (Unaudited)** | **Six Months Ended** <br>**February 28, 2026 (Unaudited)** | **Six Months Ended** <br>**February 28, 2026 (Unaudited)** | **Year Ended** <br>**August 31, 2025**  | **Year Ended** <br>**August 31, 2025**  | **Year Ended** <br>**August 31, 2025**  |
| **Funds** | **Distributions Paid From:** | **Distributions Paid From:** | **Distributions Paid From:** | **Distributions Paid From:**  | **Distributions Paid From:**  | **Distributions Paid From:**  |
| **Funds** | **Ordinary** <br>**Income** | **Long Term** <br>**Capital Gains** | **Return** <br>**of Capital** | **Ordinary** <br>**Income** | **Long Term** <br>**Capital Gains** | **Return** <br>**of Capital**  |
|  Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund | $64620 | &nbsp;&nbsp; $— | $— | $138462 | &nbsp;&nbsp; $— | $—  |
|  Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund | 258096 | &nbsp;&nbsp; — |  | 270462 | &nbsp;&nbsp; — | —  |
|  Direxion Monthly High Yield Bull 1.2X Fund | 141764 | &nbsp;&nbsp; — |  | 1387504 | &nbsp;&nbsp; — | 1786  |
|  Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.25X Fund | 86169 | &nbsp;&nbsp; — |  | 190446 | &nbsp;&nbsp; — | —  |
|  Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.75X Fund | 73029320 | &nbsp;&nbsp; — |  | 4553713 | &nbsp;&nbsp; — | —  |
|  Direxion Monthly S&P 500<sup>®</sup> Bull 1.75X Fund | 9163725 | &nbsp;&nbsp; — |  | 13027551 | &nbsp;&nbsp; — | —  |
|  Direxion Monthly Small Cap Bull 1.75X Fund | 178729 | &nbsp;&nbsp; — |  | 198031 | &nbsp;&nbsp; — |  |

---

As of August 31, 2025, the components of accumulated earnings/losses of the Funds on a tax basis were as follows:

---

| | | |
|:---|:---|:---|
|  | **Direxion Monthly** <br>**7-10 Year Treasury** <br>**Bear 1.75X Fund** | **Direxion Monthly** <br>**7-10 Year Treasury** <br>**Bull 1.75X Fund**  |
| Net unrealized appreciation/(depreciation) | &nbsp;&nbsp; $(34748) | &nbsp;&nbsp;&nbsp; $117644  |
| Undistributed ordinary income (loss) | &nbsp;&nbsp; 63463 | &nbsp;&nbsp;&nbsp; 258096  |
| Undistributed capital gain (loss) | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; —  |
| Total distributable earnings (losses) | &nbsp;&nbsp; 63463 | &nbsp;&nbsp;&nbsp; 258096  |
| Other accumulated earnings (losses) | &nbsp;&nbsp; (18516264) | &nbsp;&nbsp;&nbsp; (7327274)  |
| Total accumulated earnings (losses) | &nbsp;&nbsp; $(18487549) | &nbsp;&nbsp;&nbsp; $(6951534) |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Direxion Monthly** <br>**High Yield** <br>**Bull 1.2X Fund** | **Direxion Monthly** <br>**NASDAQ-100<sup>®</sup>** <br>**Bull 1.25X Fund** | **Direxion Monthly** <br>**NASDAQ-100<sup>®</sup>** <br>**Bull 1.75X Fund**  |
| Net unrealized appreciation/(depreciation) | $(800847) | &nbsp;&nbsp; $986173 | $149092396  |
| Undistributed ordinary income (loss) |  | &nbsp;&nbsp; 86169 | 53036535  |
| Undistributed capital gain (loss) |  | &nbsp;&nbsp; — | —  |
| Total distributable earnings (losses) |  | &nbsp;&nbsp; 86169 | 53036535  |
| Other accumulated earnings (losses) | (32909498) | &nbsp;&nbsp; (3700031) | —  |
| Total accumulated earnings (losses) | $(33710345) | &nbsp;&nbsp; $(2627689) | $202128931 |

---

23<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**DIREXION FUNDS** 

**NOTES TO THE FINANCIAL STATEMENTS** 

**February 28, 2026 (Unaudited)(Continued)** 

---

| | | |
|:---|:---|:---|
|  | **Direxion Monthly** <br>**S&P 500<sup>®</sup>** <br>**Bull 1.75X Fund** | **Direxion Monthly** <br>**Small Cap** <br>**Bull 1.75X Fund**  |
| Net unrealized appreciation/(depreciation) | &nbsp;&nbsp; $30110349 | &nbsp;&nbsp; $690092  |
| Undistributed ordinary income (loss) | &nbsp;&nbsp; 5290066 | &nbsp;&nbsp; 178729  |
| Undistributed capital gain (loss) | &nbsp;&nbsp; — | &nbsp;&nbsp; —  |
| Total distributable earnings (losses) | &nbsp;&nbsp; 5290066 | &nbsp;&nbsp; 178729  |
| Other accumulated earnings (losses) | &nbsp;&nbsp; — | &nbsp;&nbsp; (9143659)  |
| Total accumulated earnings (losses) | &nbsp;&nbsp; $35400415 | &nbsp;&nbsp; $(8274838) |

---

The difference between book cost of investments and tax cost of investments is attributable primarily to the tax deferral of losses on wash sales. Other accumulated gain/(loss) is generally comprised of capital loss carryforwards and qualified late year loss deferrals.

The cost basis for investments for federal income tax purposes as of February 28, 2026 was as follows:

---

| | | |
|:---|:---|:---|
|  | **Direxion Monthly** <br>**7-10 Year Treasury** <br>**Bear 1.75X Fund**  | **Direxion Monthly** <br>**7-10 Year Treasury** <br>**Bull 1.75X Fund**  |
| Tax cost of investments | &nbsp;&nbsp;&nbsp;&nbsp; $310000 | &nbsp;&nbsp;&nbsp; $4094631  |
| Gross unrealized appreciation | &nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; 127056  |
| Gross unrealized depreciation | &nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; —  |
| Net unrealized appreciation/(depreciation) | &nbsp;&nbsp;&nbsp;&nbsp; $— | &nbsp;&nbsp;&nbsp; $127056 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Direxion Monthly** <br>**High Yield** <br>**Bull 1.2X Fund** | **Direxion Monthly** <br>**NASDAQ-100<sup>®</sup>** <br>**Bull 1.25X Fund** | **Direxion Monthly** <br>**NASDAQ-100<sup>®</sup>** <br>**Bull 1.75X Fund**  |
| Tax cost of investments | &nbsp;&nbsp;&nbsp; $3725261 | &nbsp;&nbsp;&nbsp; $3135757 | $290651282  |
| Gross unrealized appreciation | &nbsp;&nbsp;&nbsp; 128961 | &nbsp;&nbsp;&nbsp; 1029186 | 143612590  |
| Gross unrealized depreciation | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — | —  |
| Net unrealized appreciation/(depreciation) | &nbsp;&nbsp;&nbsp; $128961 | &nbsp;&nbsp;&nbsp; $1029186 | $143612590 |

---

---

| | | |
|:---|:---|:---|
|  | **Direxion Monthly** <br>**S&P 500<sup>®</sup>** <br>**Bull 1.75X Fund** | **Direxion Monthly** <br>**Small Cap** <br>**Bull 1.75X Fund**  |
| Tax cost of investments | &nbsp;&nbsp; $58911889 | &nbsp;&nbsp;&nbsp; $4891847  |
| Gross unrealized appreciation | &nbsp;&nbsp; 26439891 | &nbsp;&nbsp;&nbsp; 1516402  |
| Gross unrealized depreciation | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; —  |
| Net unrealized appreciation/(depreciation) | &nbsp;&nbsp; $26439891 | &nbsp;&nbsp;&nbsp; $1516402 |

---

In order to meet certain U.S. excise tax distribution requirements, each Fund is required to measure and distribute annually net capital gains realized during a twelve-month period ending October 31 and net investment income earned during a twelve-month period ending December 31. Qualified late year capital losses are any net capital losses incurred between November 1 and the end of its fiscal year, August 31, 2025. Qualified late year ordinary losses are generally losses incurred between January 1 and the end of their fiscal year, August 31, 2025. For the year ended August 31, 2025, each Fund deferred $0 of qualified late year losses.

At August 31, 2025, no Funds deferred, on a tax basis, qualified late year losses.

Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized for tax years beginning after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term.

24<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**DIREXION FUNDS** 

**NOTES TO THE FINANCIAL STATEMENTS** 

**February 28, 2026 (Unaudited)(Continued)** 

At August 31, 2025, the following Funds had capital loss carryforwards on a tax basis of:

---

| | | | |
|:---|:---|:---|:---|
|  | **Unlimited ST** | **Unlimited LT** | **Annual** <br>**Limitation**  |
| Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund | $18516264 | $— | $—  |
| Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund | 7012620 | 314654 | —  |
| Direxion Monthly High Yield Bull 1.2X Fund | 19827425 | 13082073 | —  |
| Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.25X Fund | 278601 |  | 926  |
| Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.75X Fund |  |  | —  |
| Direxion Monthly S&P 500<sup>®</sup> Bull 1.75X Fund |  |  | —  |
| Direxion Monthly Small Cap Bull 1.75X Fund | 8866251 | 277408 | —  |
| **Capital Loss Utilized:**<br>|  |  |  |
| Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.75X Fund | $9101717 | $— | $— |

---

In accordance with Sections 381-384 of the Internal Revenue Code, a portion of certain Fund's losses have been subjected to an annual limitation. Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.25X Fund has $3,421,430 of capital losses that are subject to an annual limitation.

To the extent that a Fund realizes future net capital gains, those gains will be offset by any unused capital loss carryover.

The Funds follow authoritative financial reporting rules regarding recognition and measurement of tax positions taken or expected to be taken on a tax return. Management has reviewed all open tax years and concluded that there is no effect to the Funds' financial positions or results of operations and no tax liability was required to be recorded resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken on a tax return. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During this period, the Funds did not incur any interest or penalties. Open tax years are those years that are open for examination by the relevant income taxing authority. As of February 28, 2026, open U.S. Federal and state income tax years include the tax years ended August 31, 2023 through August 31, 2025. The Funds have no examinations in progress. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax expense will significantly change in the next twelve months.

4. INVESTMENT TRANSACTIONS

The table below presents each Fund's investment transactions during the six months ended February 28, 2026. Purchases represent the aggregate purchases of investments excluding short-term investment purchases and swap contracts. Sales represent the aggregate sales of investments excluding proceeds from short-term investments and swap contracts.

---

| | | |
|:---|:---|:---|
| **Funds** | **Purchases** | **Sales**  |
| Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund | $— | $—  |
| Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund | 1330542 | 9524077  |
| Direxion Monthly High Yield Bull 1.2X Fund | 66273220 | 68612093  |
| Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.25X Fund | 5709198 | 8343550  |
| Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.75X Fund | 35943756 | —  |
| Direxion Monthly S&P 500<sup>®</sup> Bull 1.75X Fund |  | —  |
| Direxion Monthly Small Cap Bull 1.75X Fund | 1954934 | 2438208 |

---

There were no purchases or sales of long-term U.S. Government securities in the Funds during the six months ended February 28, 2026.

25<br>

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**[**TABLE OF CONTENTS**](#TOC)**

**DIREXION FUNDS** 

**NOTES TO THE FINANCIAL STATEMENTS** 

**February 28, 2026 (Unaudited)(Continued)** 

5. INVESTMENT ADVISORY AND OTHER AGREEMENTS

Under an Investment Advisory Agreement between the Adviser and the Trust, on behalf of each Fund, the Adviser provides a continuous investment program for each Fund's assets in accordance with its investment objectives, policies and limitations, and oversees the day-to-day operations of each Fund, subject to the supervision of the Trustees. Pursuant to the Advisory Agreement, each Fund pays the Adviser investment advisory fees at an annual rate of 0.75% based on its average daily net assets, computed daily and payable monthly.

Under the Management Services Agreement, the Trust pays to the Adviser a fee at the annual rate of 0.05% on the first $25,000,000,000 of the aggregate average daily net assets of the Funds in the Trust and the funds in the Direxion Shares ETF Trust, 0.0475% on the aggregate average net assets of over $25,000,000,000 to $50,000,000,000 and 0.045% on the aggregate net assets above $50,000,000,000. This fee compensates the Adviser for performing certain management, administration and compliance functions related to the Trust. Pursuant to the Management Services Agreement, this fee is computed daily and payable monthly.

Each Fund is responsible for its own operating expenses. The Trust has entered into an Operating Expense Limitation Agreement with the Adviser. Under the Operating Expense Limitation Agreement, the Adviser has contractually agreed to waive its fees and/or reimburse the Funds' operating expenses to the extent that they exceed the following annual rates multiplied by the Fund's respective average daily net assets at least until September 1, 2026. Pursuant to the Operating Expense Limitation Agreement this fee is computed daily and payable monthly. Any expense waiver is subject to recoupment by the Adviser, as applicable, within the following three years if overall expenses fall below these percentage limitations. This agreement may be terminated or revised at any time with the consent of the Board of Trustees.

---

| | |
|:---|:---|
| Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund | 1.35%  |
| Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund | 1.35% |
| Direxion Monthly High Yield Bull 1.2X Fund | 1.35%  |
| Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.25X Fund | 1.15%  |
| Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.75X Fund | 1.35%  |
| Direxion Monthly S&P 500<sup>®</sup> Bull 1.75X Fund | 1.35%  |
| Direxion Monthly Small Cap Bull 1.75X Fund | 1.35% |

---

Any expense cap is subject to recoupment by the Adviser within the following three years only if overall expenses fall below the lesser of this percentage limitation and any percentage limitation in place at the time. This agreement may be terminated or revised at any time with the consent of the Board of Trustees.

The table below presents amounts that the Adviser recouped, waived and the amounts available for potential recoupments by the Adviser.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Funds** | **Expenses** <br>**Recouped** | **Expenses** <br>**Reimbursed** | **Potential Recoupment Amounts Expiring:** | **Potential Recoupment Amounts Expiring:** | **Potential Recoupment Amounts Expiring:** | **Potential Recoupment Amounts Expiring:** | **Total Potential**<br>**Recoupment** <br>**Amount**  |
| **Funds** | **Expenses** <br>**Recouped** | **Expenses** <br>**Reimbursed** | **August 31,** <br>**2026** | **August 31,** <br>**2027** | **August 31,** <br>**2028** | **February 28,** <br>**2029**  | **Total Potential**<br>**Recoupment** <br>**Amount**  |
|  Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund | $— | &nbsp;&nbsp; $23590 | $20676 | $50354 | $43274 | &nbsp;&nbsp; $23590 | &nbsp;&nbsp; $137894  |
|  Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund |  | &nbsp;&nbsp; 15850 | 19701 | 34429 | 38330 | &nbsp;&nbsp; 15850 | &nbsp;&nbsp; 108310  |
| &nbsp;&nbsp;&nbsp; Direxion Monthly High Yield <br>Bull 1.2X Fund |  | &nbsp;&nbsp; 63705 | 63264 | 56563 | 103563 | &nbsp;&nbsp; 63705 | &nbsp;&nbsp; 287095  |
|  Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.25X Fund |  | &nbsp;&nbsp; 40907 | 27477 | 73753 | 93931 | &nbsp;&nbsp; 40907 | &nbsp;&nbsp; 236068  |
|  Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.75X Fund |  | &nbsp;&nbsp; — |  |  |  | &nbsp;&nbsp; — | &nbsp;&nbsp; —  |
| &nbsp;&nbsp;&nbsp; Direxion Monthly S&P 500<sup>®</sup> <br>Bull 1.75X Fund | 17276 | &nbsp;&nbsp; — | 27043 | 11184 | 6377 | &nbsp;&nbsp; — | &nbsp;&nbsp; 44604  |
| &nbsp;&nbsp;&nbsp; Direxion Monthly Small Cap <br>Bull 1.75X Fund |  | &nbsp;&nbsp; 20024 | 16538 | 30360 | 42457 | &nbsp;&nbsp; 20024 | &nbsp;&nbsp; 109379 |

---

26<br>

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**[**TABLE OF CONTENTS**](#TOC)**

**DIREXION FUNDS** 

**NOTES TO THE FINANCIAL STATEMENTS** 

**February 28, 2026 (Unaudited)(Continued)** 

The net amounts receivable (payable) arising from the Investment Advisory Agreement, Management Services Agreement and Operating Expense Limitation Agreement as of February 28, 2026, are presented on the Statements of Assets and Liabilities as Due from (to) Adviser, net.

Distribution Expenses: Shares of the Funds are subject to an annual 12b-1 fee of up to 1.00% of a Fund's average daily net assets. Each Fund currently pays a 12b-1 fee of 0.25% of the respective Fund's average daily net assets.

ALPS Distributors, Inc. (the "Distributor") serves as principal underwriter of the Funds and acts as the Funds' distributor in a continuous public offering of the Funds' shares. The Distributor is an affiliate of the Adviser.

6. VALUATION MEASUREMENTS

The Funds follow authoritative fair valuation accounting standards, which establish an authoritative definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion in changes in valuation techniques and related inputs during the period. These inputs are summarized in the three broad levels below:

Level 1 – Quoted prices in active markets for identical securities

Level 2 – Evaluated price based on other significant observable inputs (including quoted prices for similar securities in active markets, quoted prices for identical or similar securities in inactive markets, interest rates, prepayment speeds, credit risk, etc.)

Level 3 – Significant unobservable inputs (including the Fund's own assumptions in determining fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the credit risk associated with investing in those securities.

The follow is a summary of the inputs used to value the Funds' securities as of February 28, 2026.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Asset Class** | **Asset Class** | **Asset Class** | **Asset Class** | **Liability Class**  |
| | **Level 1** | **Level 1** | **Level 1** | **Level 2** | **Level 2**  |
| <br>**Funds** | **Investment** <br>**Companies** | **Short Term** <br>**Investments** | **Cash** <br>**Equivalents** | **Total Return** <br>**Swap Contracts\*** | **Total Return** <br>**Swap Contracts\***  |
|  Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund | $— | $310000 | $535462 | &nbsp;&nbsp; $— | &nbsp;&nbsp; $(8631)  |
|  Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund | 2890215 | 1331472 | 1159938 | &nbsp;&nbsp; 87221 | &nbsp;&nbsp; —  |
| &nbsp;&nbsp;&nbsp; Direxion Monthly High Yield <br>Bull 1.2X Fund | 3424222 | 430000 | 990363 | &nbsp;&nbsp; — | &nbsp;&nbsp; (4284)  |
|  Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.25X Fund | 2820862 | 1344081 | 3661684 | &nbsp;&nbsp; 14379 | &nbsp;&nbsp; —  |
|  Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.75X Fund | 331972042 | 102291830 | 79880001 | &nbsp;&nbsp; 1651419 | &nbsp;&nbsp; (8028967)  |
| &nbsp;&nbsp;&nbsp; Direxion Monthly S&P 500<sup>®</sup> <br>Bull 1.75X Fund | 60331780 | 25020000 | 34329211 | &nbsp;&nbsp; 1253965 | &nbsp;&nbsp; (680094)  |
| &nbsp;&nbsp;&nbsp; Direxion Monthly Small Cap <br>Bull 1.75X Fund | 4868500 | 1539749 | 2590584 | &nbsp;&nbsp; 336335 | &nbsp;&nbsp; — |

---

For further information regarding each asset class, see each Fund's Schedule of Investments.

\* Total return swap contracts are valued at the unrealized appreciation/(depreciation). 

The Funds also follow authoritative accounting standards, which require additional disclosure regarding fair value measurements. Specifically, these standards require reporting entities to disclose a) the input and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements, for Level 2 or Level 3 positions, b) transfers between all levels (including Level 1 and Level 2) on a gross basis (i.e. transfers out must be disclosed separately

27<br>

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**[**TABLE OF CONTENTS**](#TOC)**

**DIREXION FUNDS** 

**NOTES TO THE FINANCIAL STATEMENTS** 

**February 28, 2026 (Unaudited)(Continued)** 

from transfers in) as well as the reason(s) for the transfers, and c) purchases and sales on a gross basis in the Level 3 rollforward rather than as one net number. Additionally, reporting entities are required to disclose quantitative information about unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy.

7. ADDITIONAL DISCLOSURES ABOUT DERIVATIVE INSTRUMENTS

The Funds follow authoritative standards of accounting for derivative instruments, which establish disclosure requirements for derivative instruments. These standards improve financial reporting for derivative instruments by requiring enhanced disclosures that enables investors to understand how and why a fund uses derivatives instruments, how a fund accounts for derivative instruments and how derivative instruments affect a fund's financial position and results of operations.

The Funds use derivative instruments as part of their principal investment strategy to achieve their investment objective. For additional discussion on the risks associated with derivative instruments refer to Note 2. As of February 28, 2026, the Funds were invested in swap contracts.

At February 28, 2026, the fair value of derivative instruments, by primary risk, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fund** | **Asset Derivatives<sup>1</sup>**  | **Asset Derivatives<sup>1</sup>**  | **Asset Derivatives<sup>1</sup>**  | **Asset Derivatives<sup>1</sup>**  |
| **Fund** | **Credit Risk** | **Equity Risk** | **Interest Rate Risk** | **Total**  |
| Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund | &nbsp;&nbsp; $— | $— | &nbsp;&nbsp;&nbsp;&nbsp; $87221 | $87221  |
| Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.25X Fund | &nbsp;&nbsp; — | 14379 | &nbsp;&nbsp;&nbsp;&nbsp; — | 14379  |
| Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.75X Fund | &nbsp;&nbsp; — | 1651419 | &nbsp;&nbsp;&nbsp;&nbsp; — | 1651419  |
| Direxion Monthly S&P 500<sup>®</sup> Bull 1.75X Fund | &nbsp;&nbsp; — | 1253965 | &nbsp;&nbsp;&nbsp;&nbsp; — | 1253965  |
| Direxion Monthly Small Cap Bull 1.75X Fund | &nbsp;&nbsp; — | 336335 | &nbsp;&nbsp;&nbsp;&nbsp; — | 336335 |

---

<sup>1</sup> Statements of Assets and Liabilities location: Unrealized appreciation on swap contracts.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fund** | **Liability Derivatives<sup>2</sup>**  | **Liability Derivatives<sup>2</sup>**  | **Liability Derivatives<sup>2</sup>**  | **Liability Derivatives<sup>2</sup>**  |
| **Fund** | **Credit Risk** | **Equity Risk** | **Interest Rate Risk** | **Total**  |
| Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund | &nbsp;&nbsp; $— | $— | &nbsp;&nbsp;&nbsp;&nbsp; $8631 | $8631  |
| Direxion Monthly High Yield Bull 1.2X Fund | &nbsp;&nbsp; 4284 |  | &nbsp;&nbsp;&nbsp;&nbsp; — | 4284  |
| Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.75X Fund | &nbsp;&nbsp; — | 8028967 | &nbsp;&nbsp;&nbsp;&nbsp; — | 8028967  |
| Direxion Monthly S&P 500<sup>®</sup> Bull 1.75X Fund | &nbsp;&nbsp; — | 680094 | &nbsp;&nbsp;&nbsp;&nbsp; — | 680094 |

---

<sup>2</sup> Statements of Assets and Liabilities location: Unrealized depreciation on swap contracts.

Transactions in derivative instruments during the six months ended February 28, 2026, by primary risk, were as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Fund** |  | **Net Realized Gain (Loss)<sup>1</sup>** | **Net Realized Gain (Loss)<sup>1</sup>** | **Net Realized Gain (Loss)<sup>1</sup>** | **Net Unrealized** <br>**Appreciation (Depreciation)<sup>2</sup>**  | **Net Unrealized** <br>**Appreciation (Depreciation)<sup>2</sup>**  | **Net Unrealized** <br>**Appreciation (Depreciation)<sup>2</sup>**  |
| **Fund** |  | **Credit Risk** | **Equity Risk** | **Interest** <br>**Rate Risk** | **Credit Risk** | **Equity Risk** | **Interest** <br>**Rate Risk**  |
|  Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund | Swap Contracts | &nbsp;&nbsp; $— | $— | $(144137) | $— | $— | $16418  |
|  Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund | Swap Contracts | &nbsp;&nbsp; — |  | 50228 |  |  | (214925)  |
| &nbsp;&nbsp;&nbsp; Direxion Monthly High Yield <br>Bull 1.2X Fund | Swap Contracts | &nbsp;&nbsp; 92372 |  |  | (108176) |  | —  |
| &nbsp;&nbsp;&nbsp; Direxion Monthly NASDAQ-100<sup>®</sup> <br>Bull 1.25X Fund | Swap Contracts | &nbsp;&nbsp; — | 809189 |  |  | (470552) | —  |
| &nbsp;&nbsp;&nbsp; Direxion Monthly NASDAQ-100<sup>®</sup> <br>Bull 1.75X Fund | Swap Contracts | &nbsp;&nbsp; — | 67517973 |  |  | (38090787) | —  |
| &nbsp;&nbsp;&nbsp; Direxion Monthly S&P 500<sup>®</sup> <br>Bull 1.75X Fund | Swap Contracts | &nbsp;&nbsp; — | 18888601 |  |  | (11385638) | —  |
| &nbsp;&nbsp;&nbsp; Direxion Monthly Small Cap <br>Bull 1.75X Fund | Swap Contracts | &nbsp;&nbsp; — | 1739816 |  |  | (589605) |  |

---

<sup>1</sup> Statements of Operations location: Net realized gain (loss) on swap contracts.

<sup>2</sup> Statements of Operations location: Change in net unrealized appreciation (depreciation) on swap contracts.

28<br>

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**[**TABLE OF CONTENTS**](#TOC)**

**DIREXION FUNDS** 

**NOTES TO THE FINANCIAL STATEMENTS** 

**February 28, 2026 (Unaudited)(Continued)** 

For the year six months ended February 28, 2026, the average quarterly volume of the derivatives held by each of the Funds was as follows:

---

| | | |
|:---|:---|:---|
|  | **Quarterly Average Gross Notional Amounts**  | **Quarterly Average Gross Notional Amounts**  |
|  | **Long Total Return** <br>**Swap Contracts** | **Short Total Return** <br>**Swap Contracts**  |
| Direxion Monthly 7-10 Year Treasury Bear 1.75X Fund | &nbsp;&nbsp;&nbsp; $— | &nbsp;&nbsp;&nbsp;&nbsp; $1559678  |
| Direxion Monthly 7-10 Year Treasury Bull 1.75X Fund | &nbsp;&nbsp;&nbsp; 20998342 | &nbsp;&nbsp;&nbsp;&nbsp; —  |
| Direxion Monthly High Yield Bull 1.2X Fund | &nbsp;&nbsp;&nbsp; 1954813 | &nbsp;&nbsp;&nbsp;&nbsp; —  |
| Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.25X Fund | &nbsp;&nbsp;&nbsp; 5691003 | &nbsp;&nbsp;&nbsp;&nbsp; —  |
| Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.75X Fund | &nbsp;&nbsp;&nbsp; 586320140 | &nbsp;&nbsp;&nbsp;&nbsp; —  |
| Direxion Monthly S&P 500<sup>®</sup> Bull 1.75X Fund | &nbsp;&nbsp;&nbsp; 146510759 | &nbsp;&nbsp;&nbsp;&nbsp; —  |
| Direxion Monthly Small Cap Bull 1.75X Fund | &nbsp;&nbsp;&nbsp; 10405926 | &nbsp;&nbsp;&nbsp;&nbsp; — |

---

The Funds utilize this volume of derivatives to obtain leverage to meet the investment objectives of 120%, 125%, 175%, and -175% calendar month performance of their respective indices.

8. SUBSEQUENT EVENTS

Management has performed an evaluation of subsequent events through the date the financial statements were issued and has determined that no items require recognition or disclosure besides those noted below.

Direxion Monthly High Yield Bull 1.2X Fund paid an income distribution in the amount of $0.0350 per share, with a record date of March 16, 2026 and ex-date and payable date of March 17, 2026.

Direxion Monthly High Yield Bull 1.2X Fund paid an income distribution in the amount of $0.0562 per share, with a record date of April 15, 2026 and ex-date and payable date of April 16, 2026.

29<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**DIREXION FUNDS** 

**ADDITIONAL INFORMATION (Unaudited)** 

**FREQUENCY DISTRIBUTION OF PREMIUMS AND DISCOUNTS** 

Information regarding how often shares of the Funds traded on the Exchange at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Funds is available on the Funds' website www.direxion.com.

**FEDERAL TAX INFORMATION** 

For the year ended August 31, 2025, certain dividends paid by the Funds may be subject to a maximum rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The amount of dividends declared from ordinary income designated as qualified income was 29.01%, 31.91%, 5.69% and 0.48% for the Direxion Monthly Small Cap Bull 1.75X Fund, Direxion Monthly NASDAQ-100 Bull<sup>®</sup> 1.75X Fund, Direxion Monthly S&P 500<sup>®</sup> Bull 1.75X Fund and the Direxion Monthly NASDAQ-100<sup>®</sup> Bull 1.25X Fund, respectively.

The Funds are designating as long-term capital gain dividends, pursuant to Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the earnings and profits of the Funds related to net capital gain to zero for the tax year ending August 31, 2025. To the extent necessary to fully distribute such capital gain, the Funds also designate earnings and profits distributed to shareholders on the redemption of shares.

For corporate shareholders, the amount of ordinary income distributions qualifying for the corporate dividends received deduction for the year ended August 31, 2025 was 0% for each of the Funds.

**DISCLOSURE OF PORTFOLIO HOLDINGS** 

Each Fund files its complete schedule of portfolio holdings for their first and third fiscal quarters with the Securities and Exchange Commission ("SEC") on Part F of Form N-PORT. The Funds' Part F of Form N-PORT is available without charge, upon request, by calling 1-800-851-0511. Furthermore, you may obtain the Part F of Form N-PORT on the SEC's website at <u>www.sec.gov</u>. The Funds' portfolio holdings are posted quarterly on their website at www.direxion.com.

**PROXY VOTING POLICIES AND PROCEDURES** 

A description of the policies and procedures the Funds use to determine how to vote proxies related to portfolio securities is provided in the SAI. The SAI is available without charge upon request by calling 1-800-850-0511, by accessing the SEC's website at www.sec.gov or by accessing the Funds' website at www.direxion.com. Information on how the Funds voted proxies related to portfolio securities during the period ended February 28, 2026, is available without charge, upon request, by calling 1-800-851-0511 or by accessing the website of the SEC.

30<br>

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**[**TABLE OF CONTENTS**](#TOC)**

**DIREXION FUNDS** 

**FORM N-CSR ITEMS (Unaudited)** 

**ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END INVESTMENT COMPANIES** 

There were no changes in or disagreements with accountants during the period covered by this report.

**ITEM 9. PROXY DISCLOSURES FOR OPEN-END INVESTMENT COMPANIES** 

There were no matters submitted to a vote of shareholders during the period covered by this report.

**ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS FOR OPEN-END INVESTMENT COMPANIES** 

The Trust, together with other affiliated trusts, pay each Independent Trustee an aggregate fee consisting of a $225,000 annual retainer (paid in monthly increments) for services provided as a Board member. Such fees are allocated between the Funds and other affiliated funds. Each Fund's share of these fees, together with reimbursable expenses of the Trustees, is reflected on the Statements of Operations as "Trustees fees and expenses".

**ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT** 

Not applicable.

31<br>

![](hiltoncover_23607.jpg)

------

**Table of Contents** 

---

| | |
|:---|:---|
|  | **Page**  |
| [Schedule of Investments](#tsoi) | [1](#tsoi) |
| [Statement of Assets and Liabilities](#tsal) | [7](#tsal) |
| [Statement of Operations](#tsop) | [8](#tsop) |
| [Statements of Changes in Net Assets](#tscna) | [9](#tscna) |
| [Financial Highlights](#tfihi) | [10](#tfihi) |
| [Notes to the Financial Statements](#tnote) | [11](#tnote) |
| [Additional Information](#tadd) | [17](#tadd) |
| [Form N-CSR Items](#toth) | [18](#toth) |

---

------

**[**TABLE OF CONTENTS**](#TOC)**

**Hilton Tactical Income Fund** 

**Schedule of Investments** 

**February 28, 2026 (Unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value**  |
| **INVESTMENT COMPANIES - 44.7%**<br>|  |  |
| **Exchange Traded Funds - 44.7%**<br>|  |  |
| **Equity Exchange Traded Funds - 19.0%**<br>|  |  |
| Alerian MLP ETF<sup>(a)</sup> | 27490 | $1430580  |
| Goldman Sachs S&P 500 Premium Income ETF<sup>(a)</sup> | 83980 | 4426586  |
| JPMorgan Equity Premium Income ETF<sup>(a)</sup> | 45775 | 2741007  |
| JPMorgan Nasdaq Equity Premium Income ETF<sup>(a)</sup> | 122775 | 7125861  |
| Utilities Select Sector SPDR Fund<sup>(a)</sup> | 65255 | 3114621  |
| Vanguard International High Dividend Yield ETF<sup>(a)</sup> | 70105 | 7086915  |
|  |  | 25925570  |
| **Income Exchange Traded Funds - 25.7%**<br>|  |  |
| FT Vest Gold Strategy Target Income ETF<sup>(a)</sup> | 94365 | 2736585  |
| iShares MBS ETF<sup>(a)</sup> | 67295 | 6521558  |
| Janus Henderson AAA CLO ETF<sup>(a)</sup> | 80060 | 4033423  |
| JPMorgan Income ETF<sup>(a)</sup> | 116050 | 5404448  |
| Simplify MBS ETF<sup>(a)</sup> | 96280 | 4872731  |
| Vanguard Intermediate-Term Corporate Bond ETF<sup>(a)</sup> | 70960 | 6011731  |
| Vanguard Intermediate-Term Treasury ETF<sup>(a)</sup> | 56080 | 3405738  |
| Vanguard Short-Term Corporate Bond ETF<sup>(a)</sup> | 25775 | 2067155  |
|  |  | 35053369  |
| &nbsp;&nbsp;&nbsp; **TOTAL INVESTMENT COMPANIES** <br>**(Cost $57,118,733)** |  | 60978939  |
| **COMMON STOCKS - 32.5%**<br>|  |  |
| **Aerospace & Defense - 0.5%**<br>|  |  |
| General Dynamics Corp. | 1980 | 706959  |
| **Banks - 3.0%**<br>|  |  |
| Bank of America Corp. | 17900 | 891957  |
| Cullen/Frost Bankers, Inc. | 3040 | 420189  |
| JPMorgan Chase & Co. | 3890 | 1168167  |
| Truist Financial Corp. | 14335 | 706859  |
| Wells Fargo & Co. | 10675 | 869479  |
|  |  | 4056651  |
| **Biotechnology - 0.5%**<br>|  |  |
| Amgen, Inc. | 1935 | 751090  |
| **Capital Markets - 1.1%**<br>|  |  |
| 3i Group PLC (United Kingdom) - ADR | 38635 | 438507  |
| Blackrock, Inc. | 645 | 685783  |
| Franklin Resources, Inc. | 14755 | 391598  |
|  |  | 1515888  |
| **Commercial Services & Supplies - 0.6%**<br>|  |  |
| Republic Services, Inc. | 3800 | 870200  |
| **Communications Equipment - 1.0%**<br>|  |  |
| Cisco Systems, Inc. | 16370 | 1300760  |

---

The accompanying notes are an integral part of these financial statements.

1<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**Hilton Tactical Income Fund** 

**Schedule of Investments** 

**February 28, 2026 (Unaudited)(Continued)** 

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value**  |
| **COMMON STOCKS - (Continued)**  | **COMMON STOCKS - (Continued)**  | **COMMON STOCKS - (Continued)**  |
| **Electrical Equipment - 0.6%**<br>|  |  |
| Emerson Electric Co. | 5240 | $789930  |
| **Food Products - 0.3%**<br>|  |  |
| McCormick & Co., Inc. | 6170 | 438317  |
| **Health Care Equipment & Supplies - 0.5%**<br>|  |  |
| Abbott Laboratories | 5605 | 652142  |
| **Health Care Providers & Services - 1.1%**<br>|  |  |
| Quest Diagnostics, Inc. | 5365 | 1136897  |
| UnitedHealth Group, Inc. | 1195 | 350458  |
|  |  | 1487355  |
| **Health Care REITs - 0.7%**<br>|  |  |
| American Healthcare REIT, Inc. | 10360 | 541206  |
| Welltower, Inc. | 2050 | 424596  |
|  |  | 965802  |
| **Hotels, Restaurants & Leisure - 0.9%**<br>|  |  |
| McDonald's Corp. | 3805 | 1297733  |
| **Household Products - 0.6%**<br>|  |  |
| The Procter & Gamble Co. | 4985 | 833492  |
| **Industrial Conglomerates - 1.1%**<br>|  |  |
| Honeywell International, Inc. | 3230 | 786796  |
| Siemens AG (Germany) - ADR | 4740 | 690097  |
|  |  | 1476893  |
| **Industrial REITs - 1.1%**<br>|  |  |
| Prologis, Inc. | 10630 | 1515519  |
| **Interactive Media & Services - 4.1%**<br>|  |  |
| Alphabet, Inc. - Class A | 10735 | 3346743  |
| Meta Platforms, Inc. - Class A | 3420 | 2216776  |
|  |  | 5563519  |
| **IT Services - 0.7%**<br>|  |  |
| Accenture PLC (Ireland) - Class A | 1490 | 310993  |
| International Business Machines Corp. | 2590 | 622144  |
|  |  | 933137  |
| **Machinery - 1.7%**<br>|  |  |
| Caterpillar, Inc. | 1430 | 1062247  |
| FANUC Corp. (Japan) - ADR | 30705 | 695468  |
| Xylem, Inc. | 4895 | 634196  |
|  |  | 2391911  |

---

The accompanying notes are an integral part of these financial statements.

2<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**Hilton Tactical Income Fund** 

**Schedule of Investments** 

**February 28, 2026 (Unaudited)(Continued)** 

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value**  |
| **COMMON STOCKS - (Continued)**  | **COMMON STOCKS - (Continued)**  | **COMMON STOCKS - (Continued)**  |
| **Oil, Gas & Consumable Fuels - 1.1%**<br>|  |  |
| EQT Corp. | 5735 | $352244  |
| The Williams Cos., Inc. | 15105 | 1128645  |
|  |  | 1480889  |
| **Personal Care Products - 0.7%**<br>|  |  |
| Unilever PLC (United Kingdom) - ADR | 12355 | 911181  |
| **Pharmaceuticals - 3.0%**<br>|  |  |
| AstraZeneca PLC (United Kingdom) | 8125 | 1693656  |
| Eli Lilly & Co. | 1170 | 1230828  |
| Johnson & Johnson | 3155 | 783797  |
| Merck & Co., Inc. | 4005 | 495899  |
|  |  | 4204180  |
| **Residential REITs - 0.5%**<br>|  |  |
| AvalonBay Communities, Inc. | 3555 | 630053  |
| **Semiconductors & Semiconductor Equipment - 1.3%**<br>|  |  |
| Applied Materials, Inc. | 2590 | 921496  |
| Taiwan Semiconductor Manufacturing Co. Ltd. (China) - ADR | 2310 | 865280  |
|  |  | 1786776  |
| **Software - 1.6%**<br>|  |  |
| Microsoft Corp. | 5530 | 2171852  |
| **Specialty Retail - 1.8%**<br>|  |  |
| The Home Depot, Inc. | 3050 | 1161196  |
| The TJX Cos., Inc. | 8240 | 1332078  |
|  |  | 2493274  |
| **Technology Hardware, Storage & Peripherals - 1.8%**<br>|  |  |
| Apple, Inc. | 9070 | 2396113  |
| **Trading Companies & Distributors - 0.6%**<br>|  |  |
| ITOCHU Corp. (Japan) - ADR | 53285 | 767837  |
| &nbsp;&nbsp;&nbsp; **TOTAL COMMON STOCKS** <br>**(Cost $32,661,003)** |  | 44389453 |

---

---

| | | |
|:---|:---|:---|
|  | **Par** |  |
| **CORPORATE BONDS - 18.0%**<br>|  |  |
| **Aerospace & Defense - 0.7%**<br>|  |  |
| Lockheed Martin Corp., 4.40%, 08/15/2030 | $500000 | 509506  |
| RTX Corp., 4.13%, 11/16/2028 | 500000 | 503314  |
|  |  | 1012820  |
| **Banks - 1.5%**<br>|  |  |
| JPMorgan Chase & Co., 4.26% to 10/22/2030 then SOFR + 0.93%, 10/22/2031 | 385000 | 386348  |
| M&T Bank Corp., 5.18% to 07/08/2030 then SOFR + 1.40%, 07/08/2031 | 515000 | 532039 |

---

The accompanying notes are an integral part of these financial statements.

3<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**Hilton Tactical Income Fund** 

**Schedule of Investments** 

**February 28, 2026 (Unaudited)(Continued)** 

---

| | | |
|:---|:---|:---|
|  | **Par**  | **Value** |
| **CORPORATE BONDS - (Continued)**  | **CORPORATE BONDS - (Continued)**  | **CORPORATE BONDS - (Continued)**  |
| **Banks - (Continued)**  | **Banks - (Continued)**  | **Banks - (Continued)**  |
|  The PNC Financial Services Group, Inc., 5.22% to 01/29/2030 then SOFR + 1.07%, 01/29/2031 | $610000 | $634729  |
| US Bancorp, 4.48% to 01/26/2031 then SOFR + 0.87%, 01/26/2032 | 465000 | 470437  |
|  |  | 2023553  |
| **Beverages - 0.4%**<br>|  |  |
| PepsiCo, Inc., 4.30%, 07/23/2030 | 575000 | 586766  |
| **Biotechnology - 0.5%**<br>|  |  |
| AbbVie, Inc., 4.80%, 03/15/2029 | 610000 | 626886  |
| **Broadline Retail - 0.6%**<br>|  |  |
| Amazon.com, Inc., 4.65%, 12/01/2029 | 765000 | 788416  |
| **Building Products - 0.4%**<br>|  |  |
| Lennox International, Inc., 5.50%, 09/15/2028 | 590000 | 610275  |
| **Capital Markets - 1.5%**<br>|  |  |
| Ares Capital Corp., 5.95%, 07/15/2029 | 600000 | 614101  |
| Ares Management Corp., 6.38%, 11/10/2028 | 200000 | 209902  |
| CME Group, Inc., 4.40%, 03/15/2030 | 605000 | 616530  |
| State Street Corp., 4.73%, 02/28/2030 | 605000 | 622145  |
|  |  | 2062678  |
| **Communications Equipment - 1.0%**<br>|  |  |
| Cisco Systems, Inc., 4.95%, 02/26/2031 | 730000 | 760600  |
| Motorola Solutions, Inc., 4.85%, 08/15/2030 | 645000 | 662952  |
|  |  | 1423552  |
| **Consumer Finance - 0.6%**<br>|  |  |
| American Express Co., 5.09% to 01/30/2030 then SOFR + 1.02%, 01/30/2031 | 795000 | 821721  |
| **Consumer Staples Distribution & Retail - 0.5%**<br>|  |  |
| Walmart, Inc., 4.35%, 04/28/2030 | 635000 | 648980  |
| **Entertainment - 0.4%**<br>|  |  |
| Netflix, Inc., 5.88%, 11/15/2028 | 550000 | 578884  |
| **Health Care Equipment & Supplies - 0.5%**<br>|  |  |
| Stryker Corp., 4.85%, 02/10/2030 | 620000 | 639941  |
| **Health Care REITs - 0.5%**<br>|  |  |
| Welltower OP LLC, 4.50%, 07/01/2030 | 605000 | 616457  |
| **Insurance - 1.4%**<br>|  |  |
| Arthur J Gallagher & Co., 5.00%, 02/15/2032 | 635000 | 649501  |
| Marsh & McLennan Cos., Inc., 4.38%, 03/15/2029 | 620000 | 626781  |
| MetLife, Inc., 4.55%, 03/23/2030 | 675000 | 691207  |
|  |  | 1967489  |

---

The accompanying notes are an integral part of these financial statements.

4<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**Hilton Tactical Income Fund** 

**Schedule of Investments** 

**February 28, 2026 (Unaudited)(Continued)** 

---

| | | |
|:---|:---|:---|
|  | **Par**  | **Value** |
| **CORPORATE BONDS - (Continued)**  | **CORPORATE BONDS - (Continued)**  | **CORPORATE BONDS - (Continued)**  |
| **Interactive Media & Services - 0.4%**<br>|  |  |
| Meta Platforms, Inc., 4.30%, 08/15/2029 | $515000 | $523551  |
| **IT Services - 0.4%**<br>|  |  |
| International Business Machines Corp., 4.80%, 02/10/2030 | 500000 | 512659  |
| **Life Sciences Tools & Services - 0.6%**<br>|  |  |
| Thermo Fisher Scientific, Inc., 5.00%, 01/31/2029 | 760000 | 785370  |
| **Media - 0.4%**<br>|  |  |
| Comcast Corp., 4.15%, 10/15/2028 | 475000 | 478606  |
| **Oil, Gas & Consumable Fuels - 0.4%**<br>|  |  |
| The Williams Cos., Inc., 5.30%, 08/15/2028 | 590000 | 609360  |
| **Pharmaceuticals - 1.8%**<br>|  |  |
| Bristol-Myers Squibb Co., 5.10%, 02/22/2031 | 640000 | 669654  |
| GlaxoSmithKline Capital, Inc., 4.50%, 04/15/2030 | 655000 | 670384  |
| Merck & Co., Inc., 4.30%, 05/17/2030 | 640000 | 650428  |
| Pfizer, Inc., 3.60%, 09/15/2028 | 415000 | 415206  |
|  |  | 2405672  |
| **Professional Services - 0.8%**<br>|  |  |
| Automatic Data Processing, Inc., 4.75%, 05/08/2032 | 420000 | 433266  |
| Paychex, Inc., 5.10%, 04/15/2030 | 615000 | 628448  |
|  |  | 1061714  |
| **Retail REITs - 0.4%**<br>|  |  |
| Realty Income Corp., 4.85%, 03/15/2030 | 570000 | 588632  |
| **Semiconductors & Semiconductor Equipment - 0.9%**<br>|  |  |
| Broadcom, Inc., 5.05%, 07/12/2029 | 615000 | 636497  |
| Texas Instruments, Inc., 4.50%, 05/23/2030 | 605000 | 618418  |
|  |  | 1254915  |
| **Specialized REITs - 0.9%**<br>|  |  |
| Extra Space Storage LP, 5.50%, 07/01/2030 | 555000 | 581086  |
| Public Storage Operating Co., 4.38%, 07/01/2030 | 630000 | 640634  |
|  |  | 1221720  |
| **Specialty Retail - 0.5%**<br>|  |  |
| Lowe's Cos., Inc., 4.50%, 04/15/2030 | 620000 | 630781  |
| &nbsp;&nbsp;&nbsp; **TOTAL CORPORATE BONDS** <br>**(Cost $23,993,405)**  |  | 24481398  |
| **U.S. TREASURY SECURITIES - 2.1%**<br>|  |  |
| U.S. Treasury Note, 4.13%, 11/30/2029 | 2830000 | 2897378  |
| &nbsp;&nbsp;&nbsp; **TOTAL U.S. TREASURY SECURITIES** <br>**(Cost $2,803,477)** |  | 2897378 |

---

The accompanying notes are an integral part of these financial statements.

5<br>

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**[**TABLE OF CONTENTS**](#TOC)**

**Hilton Tactical Income Fund** 

**Schedule of Investments** 

**February 28, 2026 (Unaudited)(Continued)** 

---

| | | |
|:---|:---|:---|
|  | **Shares** | **Value**  |
| **SHORT-TERM INVESTMENTS**<br>|  |  |
| **MONEY MARKET FUNDS - 0.0%<sup>(b)</sup>**<br>|  |  |
| Fidelity Government Portfolio - Institutional Class, 3.59%<sup>(c)</sup> | 22178 | $22178  |
| &nbsp;&nbsp;&nbsp; **TOTAL MONEY MARKET FUNDS** <br>**(Cost $22,178)** |  | 22178  |
| &nbsp;&nbsp;&nbsp; **TOTAL INVESTMENTS - 97.3%** <br>**(Cost $116,598,796)** |  | $132769346  |
| Other Assets in Excess of Liabilities - 2.7% |  | 3712407  |
| **TOTAL NET ASSETS - 100.0%** |  | $136481753 |

---

Par amount is in USD unless otherwise indicated.

Percentages are stated as a percent of net assets.

ADR - American Depositary Receipt

LLC - Limited Liability Company

LP - Limited Partnership

PLC - Public Limited Company

REIT - Real Estate Investment Trust

SOFR - Secured Overnight Financing Rate

The Global Industry Classification Standard ("GICS<sup>®</sup>") was developed by and/or is the exclusive property of MSCI, Inc. ("MSCI") and Standard & Poor's Financial Services LLC ("S&P"). GICS<sup>®</sup> is a service mark of MSCI and S&P and has been licensed for use by U.S. Bank Global Fund Services.

<sup>(a)</sup> Shareholders may obtain the financial statements of these investment companies at www.sec.gov.

<sup>(b)</sup> Represents less than 0.05% of net assets.

<sup>(c)</sup> The rate shown represents the 7-day annualized yield as of February 28, 2026.

The accompanying notes are an integral part of these financial statements.

6<br>

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**[**TABLE OF CONTENTS**](#TOC)**

**Hilton Tactical Income Fund** 

**Statement of Assets and Liabilities** 

**February 28, 2026 (Unaudited)** 

---

| | |
|:---|:---|
| **ASSETS:**<br>|  |
| Investments, at fair value (Note 2) | $132769346  |
| Cash | 3513612  |
| Interest receivable | 288127  |
| Dividends receivable | 99912  |
| Receivable for Fund shares sold | 14966  |
| Dividend tax reclaims receivable | 4703  |
| Prepaid expenses and other assets | 27467  |
| &nbsp;&nbsp;&nbsp; **Total assets** | 136718133  |
| **LIABILITIES:**<br>|  |
| Due to Adviser, net (Note 5) | 64257  |
| Payable for Fund shares redeemed | 56775  |
| Payable for distribution fees | 792  |
| Accrued expenses and other liabilities | 114556  |
| &nbsp;&nbsp;&nbsp; **Total liabilities** | 236380  |
| **NET ASSETS** | $136481753  |
| **Net Assets Consists of:**<br>|  |
| Paid-in capital | $118959517  |
| Total distributable earnings | 17522236  |
| &nbsp;&nbsp;&nbsp; **Total net assets** | $136481753  |
| **Institutional Class**<br>|  |
| Net assets | $132350639  |
| Shares issued and outstanding<sup>(a)</sup> | 7067017  |
| Net asset value per share | $18.73  |
| **Investor Class**<br>|  |
| Net assets | $4131114  |
| Shares issued and outstanding<sup>(a)</sup> | 220910  |
| Net asset value per share | $18.70  |
| **Cost:**<br>|  |
| &nbsp;&nbsp;&nbsp; Investments, at cost | $116598796 |

---

<sup>(a)</sup> Unlimited shares authorized without par value.

The accompanying notes are an integral part of these financial statements.

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**[**TABLE OF CONTENTS**](#TOC)**

**Hilton Tactical Income Fund** 

**Statement of Operations** 

**For the Period Ended February 28, 2026 (Unaudited)** 

---

| | |
|:---|:---|
| **INVESTMENT INCOME:**<br>|  |
| Dividend income | $2047170  |
| Less: Issuance fees | (2412)  |
| Less: Dividend withholding taxes | (3862)  |
| Interest income | 685553  |
| &nbsp;&nbsp;&nbsp; **Total investment income** | 2726449  |
| **EXPENSES:**<br>|  |
| Investment advisory fee (Note 5) | 508200  |
| Fund administration and accounting fees | 68121  |
| Management service fee (Note 5) | 31490  |
| State registration fees | 30141  |
| Legal fees | 25171  |
| Audit fees | 15185  |
| Trustees' fees | 8928  |
| Reports to shareholders | 7865  |
| Distribution expenses - Investor Class (Note 5) | 5167  |
| Other expenses and fees | 16321  |
| &nbsp;&nbsp;&nbsp; Total expenses | 716589  |
| &nbsp;&nbsp;&nbsp; Expense reimbursement by Adviser | (151758)  |
| &nbsp;&nbsp;&nbsp; Net expenses | 564831  |
| **NET INVESTMENT INCOME** | 2161618  |
| **REALIZED AND UNREALIZED GAIN (LOSS)**<br>|  |
| Net realized gain (loss) from:<br>|  |
| &nbsp;&nbsp;&nbsp; Investments | 2381963  |
| &nbsp;&nbsp;&nbsp; Distributions received from other investment companies | 25001  |
| Net realized gain  | 2406964  |
| Net change in unrealized appreciation (depreciation) on:<br>|  |
| &nbsp;&nbsp;&nbsp; Investments | 2976701  |
| &nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | 2976701  |
| **Net realized and unrealized gain** | 5383665  |
| **NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS** | $7545283 |

---

The accompanying notes are an integral part of these financial statements.

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**[**TABLE OF CONTENTS**](#TOC)**

**Hilton Tactical Income Fund** 

**Statements of Changes in Net Assets** 

---

| | | |
|:---|:---|:---|
|  | **Period Ended** <br>**February 28, 2026** <br>(Unaudited) | **Year Ended** <br>**August 31, 2025**  |
| **OPERATIONS:**<br>|  |  |
| &nbsp;&nbsp;&nbsp; Net investment income  | $2161618 | $4216165  |
| &nbsp;&nbsp;&nbsp; Net realized gain  | 2406964 | 5317013  |
| &nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | 2976701 | (2565153)  |
| &nbsp;&nbsp;&nbsp; **Net increase in net assets from operations** | 7545283 | 6968025  |
| **DISTRIBUTIONS TO SHAREHOLDERS:**<br>|  |  |
| &nbsp;&nbsp;&nbsp; From earnings - Institutional Class | (5605551) | (4584308)  |
| &nbsp;&nbsp;&nbsp; From earnings - Investor Class | (180268) | (230465)  |
| &nbsp;&nbsp;&nbsp; **Total distributions to shareholders** | (5785819) | (4814773)  |
| **CAPITAL TRANSACTIONS:**<br>|  |  |
| &nbsp;&nbsp;&nbsp; Shares sold - Institutional Class | 17565636 | 40641083  |
| &nbsp;&nbsp;&nbsp; Shares issued from reinvestment of distributions - Institutional Class | 5493865 | 4446113  |
| &nbsp;&nbsp;&nbsp; Shares redeemed - Institutional Class | (13145913) | (31627909)  |
| &nbsp;&nbsp;&nbsp; Redemption fees - Institutional Class | 380 | 1422  |
| &nbsp;&nbsp;&nbsp; Shares sold - Investor Class | 1092471 | 1284197  |
| &nbsp;&nbsp;&nbsp; Shares issued from reinvestment of distributions - Investor Class | 165411 | 202043  |
| &nbsp;&nbsp;&nbsp; Shares redeemed - Investor Class | (1492328) | (15526715)  |
| &nbsp;&nbsp;&nbsp; Redemption fees - Investor Class | 13 | 54  |
| &nbsp;&nbsp;&nbsp; **Net increase (decrease) in net assets from capital transactions** | 9679535 | (579712)  |
| **NET INCREASE IN NET ASSETS** | 11438999 | 1573540  |
| **NET ASSETS:**<br>|  |  |
| &nbsp;&nbsp;&nbsp; Beginning of year/period | 125042754 | 123469214  |
| &nbsp;&nbsp;&nbsp; End of year/period | $136481753 | $125042754  |
| **SHARES TRANSACTIONS**<br>|  |  |
| &nbsp;&nbsp;&nbsp; Shares sold - Institutional Class | 946016 | 2242391  |
| &nbsp;&nbsp;&nbsp; Shares issued from reinvestment of distributions - Institutional Class | 297855 | 246239  |
| &nbsp;&nbsp;&nbsp; Shares redeemed - Institutional Class | (708741) | (1748882)  |
| &nbsp;&nbsp;&nbsp; Shares sold - Investor Class | 58745 | 70867  |
| &nbsp;&nbsp;&nbsp; Shares issued from reinvestment of distributions - Investor Class | 8982 | 11192  |
| &nbsp;&nbsp;&nbsp; Shares redeemed - Investor Class | (80147) | (853852)  |
| &nbsp;&nbsp;&nbsp; **Total increase (decrease) in shares outstanding** | 522710 | (32045) |

---

The accompanying notes are an integral part of these financial statements.

9<br>

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**[**TABLE OF CONTENTS**](#TOC)**

**DIREXION FUNDS** 

**Financial Highlights** 

**February 28, 2026** 

---

| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Net Asset** <br>**Value,** <br>**Beginning** <br>**of Year/**<br>**Period** | **Net** <br>**Investment** <br>**Income<sup>1</sup>** | **Net Realized** <br>**and** <br>**Unrealized** <br>**Gain (Loss)** <br>**on** <br>**Investments** | **Net Increase** <br>(Decrease) <br>**in Net** <br>**Asset Value** <br>**Resulting** <br>**from** <br>**Operations** | **Dividends** <br>**from Net** <br>**Investment** <br>**Income** | **Dividends** <br>**from** <br>**Realized** <br>**Gains** | **Return of** <br>**Capital** <br>**Distributions** | **Total** <br>**Distributions** | **Net Asset** <br>**Value,** <br>**End of** <br>**Year/**<br>**Period** | **Total** <br>**Return<sup>2</sup>** | **Net Assets,**<br>**End of** <br>**Year/Period** <br>**(,000)** | **Ratios to Average Net Assets**  | **Ratios to Average Net Assets**  | **Ratios to Average Net Assets**  | **Ratios to Average Net Assets**  |
|  | **Net Asset** <br>**Value,** <br>**Beginning** <br>**of Year/**<br>**Period** | **Net** <br>**Investment** <br>**Income<sup>1</sup>** | **Net Realized** <br>**and** <br>**Unrealized** <br>**Gain (Loss)** <br>**on** <br>**Investments** | **Net Increase** <br>(Decrease) <br>**in Net** <br>**Asset Value** <br>**Resulting** <br>**from** <br>**Operations** | **Dividends** <br>**from Net** <br>**Investment** <br>**Income** | **Dividends** <br>**from** <br>**Realized** <br>**Gains** | **Return of** <br>**Capital** <br>**Distributions** | **Total** <br>**Distributions** | **Net Asset** <br>**Value,** <br>**End of** <br>**Year/**<br>**Period** | **Total** <br>**Return<sup>2</sup>** | **Net Assets,**<br>**End of** <br>**Year/Period** <br>**(,000)** | **Total** <br>**Expenses** | **Net**<br>**Expenses<sup>3</sup>** | **Net Investment** <br>**Income (Loss)** <br>**after Expense** <br>**Reimbursement/**<br>**Recoupment** | **Portfolio** <br>**Turnover** <br>**Rate<sup>4</sup>**  |
| **Hilton Tactical Income Fund - Institutional Class**<br>|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Six Months Ended February 28, 2026 (Unaudited) | &nbsp;&nbsp; $18.48 | &nbsp;&nbsp;&nbsp;&nbsp;0.31 | &nbsp;&nbsp;&nbsp;&nbsp;0.78 | &nbsp;&nbsp;&nbsp;&nbsp;1.09 | &nbsp;&nbsp;&nbsp; (0.39)  | &nbsp;&nbsp; (0.45) | &nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; (0.84)<br>&nbsp;&nbsp;&nbsp;&nbsp; —<sup>5</sup> | $18.73 | 6.01% | $132351 | &nbsp;&nbsp; 1.11% | &nbsp;&nbsp;&nbsp; 0.87% | &nbsp;&nbsp;&nbsp;&nbsp; 3.37% | &nbsp;&nbsp;&nbsp; 30%  |
| Year Ended August 31, 2025 | &nbsp;&nbsp; $18.17 | &nbsp;&nbsp;&nbsp;&nbsp;0.62 | &nbsp;&nbsp;&nbsp;&nbsp;0.40 | &nbsp;&nbsp;&nbsp;&nbsp;1.02 | &nbsp;&nbsp;&nbsp; (0.71) | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; (0.71)<br>&nbsp;&nbsp;&nbsp;&nbsp; —<sup>5</sup> | $18.48 | 5.78% | $120736 | &nbsp;&nbsp; 1.09% | &nbsp;&nbsp;&nbsp; 0.87% | &nbsp;&nbsp;&nbsp;&nbsp; 3.43% | &nbsp;&nbsp;&nbsp; 92%  |
| Year Ended August 31, 2024 | &nbsp;&nbsp; $16.44 | &nbsp;&nbsp;&nbsp;&nbsp;0.55 | &nbsp;&nbsp;&nbsp;&nbsp;1.76 | &nbsp;&nbsp;&nbsp;&nbsp;2.31 | &nbsp;&nbsp;&nbsp; (0.55) | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; (0.03) | &nbsp;&nbsp;&nbsp;&nbsp; (0.58)<br>&nbsp;&nbsp;&nbsp;&nbsp; —<sup>5</sup> | $18.17 | 14.38% | $105245 | &nbsp;&nbsp; 1.10% | &nbsp;&nbsp;&nbsp; 0.87% | &nbsp;&nbsp;&nbsp;&nbsp; 3.22% | &nbsp;&nbsp;&nbsp; 83%  |
| Year Ended August 31, 2023 | &nbsp;&nbsp; $16.72 | &nbsp;&nbsp;&nbsp;&nbsp;0.43 | &nbsp;&nbsp;&nbsp; (0.21) | &nbsp;&nbsp;&nbsp;&nbsp;0.22 | &nbsp;&nbsp;&nbsp; (0.43) | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; (0.07) | &nbsp;&nbsp;&nbsp;&nbsp; (0.50)<br>&nbsp;&nbsp;&nbsp;&nbsp; —<sup>5</sup> | $16.44 | 1.37% | $100711 | &nbsp;&nbsp; 1.15% | &nbsp;&nbsp;&nbsp; 0.87% | &nbsp;&nbsp;&nbsp;&nbsp; 2.65% | &nbsp;&nbsp;&nbsp; 93%  |
| Year Ended August 31, 2022 | &nbsp;&nbsp; $18.51 | &nbsp;&nbsp;&nbsp;&nbsp;0.21 | &nbsp;&nbsp;&nbsp; (1.51) | &nbsp;&nbsp;&nbsp; (1.30) | &nbsp;&nbsp;&nbsp; (0.49) | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; (0.49)<br>&nbsp;&nbsp;&nbsp;&nbsp; —<sup>5</sup> | $16.72 | -7.13% | $102016 | &nbsp;&nbsp; 1.09% | &nbsp;&nbsp;&nbsp; 0.87% | &nbsp;&nbsp;&nbsp;&nbsp; 1.17% | &nbsp;&nbsp;&nbsp; 103%  |
| Year Ended August 31, 2021 | &nbsp;&nbsp; $16.27 | &nbsp;&nbsp;&nbsp;&nbsp;0.25 | &nbsp;&nbsp;&nbsp;&nbsp;2.49 | &nbsp;&nbsp;&nbsp;&nbsp;2.74 | &nbsp;&nbsp;&nbsp; (0.27) | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; (0.23) | &nbsp;&nbsp;&nbsp;&nbsp; (0.50)<br>&nbsp;&nbsp;&nbsp;&nbsp; —<sup>5</sup> | $18.51 | 17.19% | $104044 | &nbsp;&nbsp; 1.10% | &nbsp;&nbsp;&nbsp; 0.87% | &nbsp;&nbsp;&nbsp;&nbsp; 1.45% | &nbsp;&nbsp;&nbsp; 112%  |
| **Hilton Tactical Income Fund - Investor Class**<br>|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Six Months Ended February 28, 2026 (Unaudited) | &nbsp;&nbsp; $18.46 | &nbsp;&nbsp;&nbsp;&nbsp;0.29 | &nbsp;&nbsp;&nbsp;&nbsp;0.77 | &nbsp;&nbsp;&nbsp;&nbsp;1.06 | &nbsp;&nbsp;&nbsp; (0.37) | &nbsp;&nbsp; (0.45) | &nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; (0.82)<br>&nbsp;&nbsp;&nbsp;&nbsp; —<sup>5</sup> | $18.70 | 5.83% | $4131 | &nbsp;&nbsp; 1.36% | &nbsp;&nbsp;&nbsp; 1.12% | &nbsp;&nbsp;&nbsp;&nbsp; 3.11% | &nbsp;&nbsp;&nbsp; 30%  |
| Year Ended August 31, 2025 | &nbsp;&nbsp; $18.13 | &nbsp;&nbsp;&nbsp;&nbsp;0.57 | &nbsp;&nbsp;&nbsp;&nbsp;0.42 | &nbsp;&nbsp;&nbsp;&nbsp;0.99 | &nbsp;&nbsp;&nbsp; (0.66) | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; (0.66)<br>&nbsp;&nbsp;&nbsp;&nbsp; —<sup>5</sup> | $18.46 | 5.63% | $4307 | &nbsp;&nbsp; 1.34% | &nbsp;&nbsp;&nbsp; 1.12% | &nbsp;&nbsp;&nbsp;&nbsp; 3.14% | &nbsp;&nbsp;&nbsp; 92%  |
| Year Ended August 31, 2024 | &nbsp;&nbsp; $16.40 | &nbsp;&nbsp;&nbsp;&nbsp;0.51 | &nbsp;&nbsp;&nbsp;&nbsp;1.76 | &nbsp;&nbsp;&nbsp;&nbsp;2.27 | &nbsp;&nbsp;&nbsp; (0.51) | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; (0.03) | &nbsp;&nbsp;&nbsp;&nbsp; (0.54)<br>&nbsp;&nbsp;&nbsp;&nbsp; —<sup>5</sup> | $18.13 | 14.12% | $18224 | &nbsp;&nbsp; 1.35% | &nbsp;&nbsp;&nbsp; 1.12% | &nbsp;&nbsp;&nbsp;&nbsp; 2.98% | &nbsp;&nbsp;&nbsp; 83%  |
| Year Ended August 31, 2023 | &nbsp;&nbsp; $16.68 | &nbsp;&nbsp;&nbsp;&nbsp;0.39 | &nbsp;&nbsp;&nbsp; (0.21) | &nbsp;&nbsp;&nbsp;&nbsp;0.18 | &nbsp;&nbsp;&nbsp; (0.40) | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; (0.06) | &nbsp;&nbsp;&nbsp;&nbsp; (0.46)<br>&nbsp;&nbsp;&nbsp;&nbsp; —<sup>5</sup> | $16.40 | 1.12% | $14311 | &nbsp;&nbsp; 1.40% | &nbsp;&nbsp;&nbsp; 1.12% | &nbsp;&nbsp;&nbsp;&nbsp; 2.38% | &nbsp;&nbsp;&nbsp; 93%  |
| Year Ended August 31, 2022 | &nbsp;&nbsp; $18.48 | &nbsp;&nbsp;&nbsp;&nbsp;0.16 | &nbsp;&nbsp;&nbsp; (1.51) | &nbsp;&nbsp;&nbsp; (1.35) | &nbsp;&nbsp;&nbsp; (0.45) | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; (0.45)<br>&nbsp;&nbsp;&nbsp;&nbsp; —<sup>5</sup> | $16.68 | -7.41% | $18035 | &nbsp;&nbsp; 1.34% | &nbsp;&nbsp;&nbsp; 1.12% | &nbsp;&nbsp;&nbsp;&nbsp; 0.92% | &nbsp;&nbsp;&nbsp; 103%  |
| Year Ended August 31, 2021 | &nbsp;&nbsp; $16.24 | &nbsp;&nbsp;&nbsp;&nbsp;0.20 | &nbsp;&nbsp;&nbsp;&nbsp;2.50 | &nbsp;&nbsp;&nbsp;&nbsp;2.70 | &nbsp;&nbsp;&nbsp; (0.25) | &nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; (0.21) | &nbsp;&nbsp;&nbsp;&nbsp; (0.46)<br>&nbsp;&nbsp;&nbsp;&nbsp; —<sup>5</sup> | $18.48 | 16.94% | $20160 | &nbsp;&nbsp; 1.34% | &nbsp;&nbsp;&nbsp; 1.12% | &nbsp;&nbsp;&nbsp;&nbsp; 1.18% | &nbsp;&nbsp;&nbsp; 112% |

---

<sup>1</sup> Net investment income per share represents net investment income divided by the daily average shares of beneficial interest outstanding throughout each year/period.

<sup>2</sup> Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at the net asset value during the period and redemption on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been reimbursed by the investment adviser.

<sup>3</sup> Net expenses include effects of any reimbursement or recoupment.

<sup>4</sup> Portfolio turnover is not annualized and is calculated without regard to short-term securities that have a maturity of less than one year.

<sup>5</sup> Amount represents less than $0.005 per share. Redemption Fees Paid to Fund are included in the Statement of Changes in Net Assets "Shares redeemed" for each share class. 

The accompanying notes are an integral part of these financial statements.

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**[**TABLE OF CONTENTS**](#TOC)**

**Direxion Funds** 

**NOTES TO THE FINANCIAL STATEMENTS** 

**February 28, 2026 (Unaudited)** 

1. ORGANIZATION

Direxion Funds (the "Trust") was organized as a Massachusetts Business Trust on June 6, 1997, and is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company issuing its shares in series, each series representing a distinct portfolio with its own investment objective and policies. The Trust currently has eight series, of which one is included in this report: the Hilton Tactical Income Fund (the "Fund"). The Fund is a diversified series of the Trust pursuant to the 1940 Act. The Fund currently offers Investor Class and Institutional Class shares. Institutional Class shares are made available through investment advisers, banks, trust companies or authorized representatives without a sales charge. Rafferty Asset Management, LLC serves as adviser to the Fund (the "Adviser") and Hilton Capital Management, LLC serves as the Fund's subadviser (the "Subadviser").

The Fund primarily seeks income with a secondary investment objective of capital appreciation consistent with the preservation of capital. The Fund pursues its investment objective by utilizing an investment strategy that employs a disciplined approach to balancing fixed income investments with historically higher income producing equity securities, with a focus on minimizing absolute risk and volatility. The Subadviser attempts to mitigate portfolio risk and volatility by creating a diversified portfolio of income producing securities that also offer the potential for capital appreciation. These securities may include common and preferred stocks of any capitalization, master limited partnerships, real estate investment trusts ("REITs"), and a variety of debt instruments of any maturity, including corporate bonds, exchange-traded notes, municipal bonds, and securities issued, backed, or otherwise guaranteed by the U.S. Government or its agencies.

The Trust has evaluated the structure, objective and activities of the Fund and determined that it meets the characteristics of an investment company. As such, these financial statements have applied the guidance as set forth in the Financial Accounting Standards Board ("FASB") Accounting Standards Codifications ("ASC") 946, "Financial Services - Investment Companies".

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles ("GAAP").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Investment Valuation – The Net Asset Value ("NAV") per share of the Fund is determined daily, as of the close of regular trading on the New York Stock Exchange ("NYSE") (normally at 4:00 p.m. Eastern time ("Valuation Time")), each day the NYSE is open for business. A security listed or traded on an exchange, domestic or foreign, is valued at its last sales price on the principal exchange on which it is traded prior to the time when assets are valued. If no sale is reported at that time, the mean of the last bid and asked prices is used. Securities primarily traded on the NASDAQ<sup>®</sup> Global Market ("NASDAQ") for which market quotations are readily available are valued using the NASDAQ<sup>®</sup> Official Closing Price ("NOCP") provided by NASDAQ each business day. Over-the-counter ("OTC") securities held by the Fund are valued at the last sales price or, if no sales price is reported, the mean of the last bid and asked price is used. Investments in open-end mutual funds, including money market funds, are valued at their respective quoted NAV on the valuation date. Asset-backed securities, convertible bonds and corporate bonds are valued using the mean between the closing bid and ask price furnished by an independent pricing service. Securities for which reliable market quotations are not readily available, the Fund's pricing service does not provide a valuation for such securities, the Fund's pricing service provides valuation that in the judgment of the Adviser does not represent fair value, or the Fund or Adviser believes the market price is stale, are fair valued as determined by the Adviser under the supervision of the Board of Trustees. Additionally, the Adviser will monitor developments in the marketplace for significant events that may affect the value of those securities whose closing prices were established before the Valuation Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Investment Transactions – Investment transactions are recorded on trade date. The Fund determines the gain or loss realized from investment transactions by comparing the identified cost, which is the same basis used for federal income tax purposes, with the net sales proceeds.

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**[**TABLE OF CONTENTS**](#TOC)**

**Direxion Funds** 

**NOTES TO THE FINANCIAL STATEMENTS** 

**February 28, 2026 (Unaudited)(Continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Investments in Other Investment Companies – A Fund may invest in another ETF or mutual fund, collectively defined as "investment companies". As a result, Fund shareholders indirectly bear the Fund's proportionate share of fees and expenses paid by shareholders of the other investment company, in addition to the fees and expenses Fund shareholders bear in connection with the Fund's own operations. These costs are disclosed in the Fund's prospectus as Acquired Fund Fees and Expenses. Shareholders may obtain the financial statements of these investment companies at www.sec.gov.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, necessary to qualify as a regulated investment company and to make the requisite distributions of income and capital gains to its shareholders sufficient to relieve it from all or substantially all Federal income taxes and excise taxes. No provision for Federal income taxes has been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Income and Expenses – Dividend income is recorded on the ex-dividend date. Distributions received from the Fund's investments in investment companies and REITs are accounted for based on the tax character of the distribution and can be comprised of ordinary income, capital gains and return of capital, as applicable. Interest income, including amortization of premium and discount, and dividends received from money market funds, is recognized on an accrual basis. Discounts and premiums on securities purchased are amortized over the expected life of the respective securities. Expenses are computed based on the Fund's respective average daily net assets. Other than class specific expenses, income and expenses are allocated to each class of shares based upon relative net assets. For an additional discussion on expenses, refer to Note 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) Risks of Investing in Foreign Securities – Investment in foreign securities involve greater risk than investing in domestic securities. As a result, a Fund's returns and net asset values may be affected to a large degree by fluctuations in currency exchange rates, political, diplomatic, or economic conditions and regulatory requirements in other countries. The laws and accounting, auditing, and financial reporting standards in foreign countries may require less disclosure than required in the U.S., and there may be less public information available about foreign companies. Investments in foreign emerging markets present a greater risk than investing in foreign issuers in general. The risk of political or social upheaval is greater in emerging markets. In addition, there may be risks of an economy's dependence on revenues from particular commodities, currency transfer restrictions, a limited number of buyers for such securities and delays and disruptions in securities settlement procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) Distributions to Shareholders – The Fund pays dividends from net investment income and distributes net realized capital gains, if any, at least annually. Income and capital gain distributions are determined in accordance with U.S. Federal income tax regulations, which may differ from GAAP. The Fund also utilizes earnings and profits distributed to shareholders on redemptions of shares as part of the dividends paid deduction. Distributions to shareholders are recorded on the ex-dividend date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) Operating Segments – The Fund has adopted FASB Accounting Standards Update 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. Adoption of the enhanced standard impacted financial statement disclosures only and did not affect the Fund's financial position or results of operations. Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their operating results regularly reviewed by a chief operating decision maker ("CODM") when assessing segment performance and making decisions about segment resources. The Fund is deemed to be an individual reporting segment and Officers of the Trust collectively act as CODM. The CODM monitors the operating results of the Trust as a whole and each Fund's long-term strategic asset allocation is guided by each Fund's investment objective and principal investment strategies as described in its prospectus and executed by the Adviser. The financial information provided to and reviewed by the CODM is consistent with that presented in the Fund's financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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**[**TABLE OF CONTENTS**](#TOC)**

**Direxion Funds** 

**NOTES TO THE FINANCIAL STATEMENTS** 

**February 28, 2026 (Unaudited)(Continued)** 

3. INCOME TAX AND DISTRIBUTION INFORMATION

The tax character of distributions during the six months ended February 28, 2026 and August 31, 2025 were as follows:

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended** <br>**February 28, 2026** <br>(Unaudited) | **Year Ended** <br>**August 31, 2025**  |
| **Distributions Paid from:**<br>|  |  |
| &nbsp;&nbsp;&nbsp; Ordinary Income | &nbsp;&nbsp;&nbsp; $2696546 | &nbsp;&nbsp; $4306046  |
| &nbsp;&nbsp;&nbsp; Long-Term Capital Gains | &nbsp;&nbsp;&nbsp; 3089273 | &nbsp;&nbsp; 508727  |
| &nbsp;&nbsp;&nbsp; Return of Capital | &nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp; —  |
| **Total Distributions Paid** | &nbsp;&nbsp;&nbsp; $5785819 | &nbsp;&nbsp; $4814773 |

---

The Fund is designating as long-term capital gain dividends, pursuant to Internal Revenue Code 852(b)(3), the amount necessary to reduce the earnings and profits of the Fund related to net capital gain to zero for the tax year ended August 31, 2025. To the extent necessary to fully distribute such capital gains, the Fund is also designating earnings and profits distributed to shareholders on the redemption of shares.

As of August 31, 2025, the components of accumulated earnings/losses of the Fund on a tax basis were as follows:

---

| | |
|:---|:---|
| Net unrealized appreciation/(depreciation) | $13014243  |
| Undistributed ordinary income | —  |
| Undistributed long-term capital gain | 2748529  |
| Total distributable earnings | 2748529  |
| Other accumulated gain/(loss) | —  |
| Total accumulated earnings/(losses) | $15762772 |

---

The difference between book cost of investments and tax cost of investments is attributable primarily to the tax treatment of Passive Foreign Investment Companies and the tax deferral of losses on wash sales.

The cost basis for investments for federal income tax purposes as of February 28, 2026, was as follows:

---

| | |
|:---|:---|
| Tax cost of investments | $116598796  |
| Gross unrealized appreciation | 16526865  |
| Gross unrealized depreciation | (356315)  |
| Net unrealized appreciation/(depreciation) | $16170550 |

---

In order to meet certain U.S. excise tax distribution requirements, the Fund is required to measure and distribute annually net capital gains realized during a twelve-month period ending October 31 and net investment income earned during a twelve-month period ending December 31. Qualified late year capital losses are any net capital losses incurred between November 1 and the end of its fiscal year, August 31, 2025. Qualified late year ordinary losses are generally losses incurred between January 1 and the end of its fiscal year, August 31, 2025. For the year ended August 31, 2025, the Fund deferred no qualified late year losses.

Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized for tax years beginning after December 22, 2010, may be carried forward indefinitely, and their character is retained as short-term and/or long-term. As of August 31, 2025, the Fund had no short-term or long-term capital loss carryforwards on a tax basis.

The Fund follows authoritative financial reporting rules regarding recognition and measurement of tax positions taken or expected to be taken on a tax return. Management has reviewed all open tax years and concluded that there is no effect to the Fund's financial position or results of operations and no tax liability was required to be recorded resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken on a tax return. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense

13<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**Direxion Funds** 

**NOTES TO THE FINANCIAL STATEMENTS** 

**February 28, 2026 (Unaudited)(Continued)** 

in the Statement of Operations. During this period, the Fund did not incur any interest or penalties. Open tax years are those years that are open for examination by the relevant income taxing authority. As of February 28, 2026, open U.S. Federal and state income tax years include the tax years ended August 31, 2023 through August 31, 2025. The Fund has no examinations in progress. The Fund is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax expense will significantly change in the next twelve months.

4. INVESTMENT TRANSACTIONS

During the six months ended February 28, 2026, the aggregate purchases and sales of investments (excluding short-term investments) in the Fund were $43,887,516 and $38,171,829, respectively.

Of the aggregate purchases and sales of investments in the Fund during the six months ended February 28, 2026, $87,042 were purchases of long-term U.S. Government securities and $5,043,365 were sales of long-term U.S. Government securities.

5. INVESTMENT ADVISORY FEE AND OTHER AGREEMENTS

Under an Investment Advisory Agreement between the Adviser and the Trust, on behalf of the Fund, the Adviser provides a continuous investment program the Fund's asset in accordance with its investment objectives, policies and limitations, and oversees the day-to-day operations of each Fund, subject to the supervision of the Trustees. Pursuant to the Advisory Agreement, the Fund pays the Adviser investment advisory fees at an annual rate of 0.79% based on its average daily net assets, computed daily and payable monthly.

The Adviser has entered into a Sub-Advisory Agreement with the Subadvisor, whereby the Subadvisor will provide investment management and asset allocation advice to the Fund. The Advisor pays, out of the investment advisory fee it receives from the Fund, a fee for these sub-advisory fees. Pursuant to the Sub-Advisory Agreement, the Advisor pays the Sub-Advisor fees at an annual rate of 0.59% based on its average daily net assets, computed daily and payable monthly.

Under the Management Services Agreement, the Trust pays to the Adviser a fee at the annual rate of 0.05% on the first $25,000,000,000 of the aggregate average daily net assets of the Funds in the Trust and the funds in the Direxion Shares ETF Trust, 0.0475% on the aggregate average net assets of over $25,000,000,000 to $50,000,000,000 and 0.045% on the aggregate net assets above $50,000,000,000. This fee compensates the Adviser for performing certain management, administration and compliance functions related to the Trust. Pursuant to the Management Services Agreement, this fee is computed daily and payable monthly.

The Fund is responsible for its own operating expenses. The Fund has entered into an Operating Expense Limitation Agreement with the Adviser. Under the Operating Expense Limitation Agreement, the Adviser has contractually agreed to waive its fees and/or reimburse the Fund's operating expenses to the extent that they exceed the annual rate of 1.12% for the Investor Class Shares and 0.87% for Institutional Class Shares multiplied by the Fund's respective average daily net assets at least until September 1, 2026. Pursuant to the Operating Expense Limitation Agreement this fee is computed daily and payable monthly. Any expense waiver is subject to recoupment by the Adviser, as applicable, within the following three years if overall expenses fall below these percentage limitations. This agreement may be terminated or revised at any time with the consent of the Board of Trustees.

The table below presents amounts that the Subadviser recouped, waived and the amounts available for potential recoupments by the Subadviser.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Potential Recoupment Amounts Expiring:** | **Potential Recoupment Amounts Expiring:** | **Potential Recoupment Amounts Expiring:** | **Potential Recoupment Amounts Expiring:** | **Total Potential**<br>**Recoupment**<br>**Amount**  |
| <br>**Expenses**<br>**Recouped**  | <br>**Expenses**<br>**Reimbursed**  | **August 31,**<br>**2026** | **August 31,**<br>**2027** | **August 31,**<br>**2028** | **February 28,**<br>**2029** | **Total Potential**<br>**Recoupment**<br>**Amount**  |
| $— | $151758 | $142135 | $276835 | $271920 | $151758 | &nbsp;&nbsp; $842648 |

---

The net amounts receivable (payable) arising from the Investment Advisory Agreement, Management Services Agreement and Operating Expense Limitation Agreement as of February 28, 2026, are presented on the Statements of Assets and Liabilities as Due from (to) Adviser, net.

14<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**Direxion Funds** 

**NOTES TO THE FINANCIAL STATEMENTS** 

**February 28, 2026 (Unaudited)(Continued)** 

Distribution Expenses: Shares of the Fund are subject to an annual 12b-1 fee of up to 1.00% of the Fund's average daily net assets. The Investor Class shares of the Fund pay a fee of 0.25% of its average daily net assets. The Institutional Class shares of the Fund do not pay a 12b-1 fee. The Fund does not charge a shareholder service fee.

ALPS Distributors, Inc. (the "Distributor") serves as principal underwriter of the Fund and acts as the Fund's distributor in a continuous public offering of the Fund's shares. The Distributor is an affiliate of the Adviser.

6. VALUATION MEASUREMENTS

The Fund follows authoritative fair valuation accounting standards, which establish an authoritative definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion of changes in valuation techniques and related inputs during the period. These inputs are summarized in the three broad levels listed below:

Level 1 – Quoted prices in active markets for identical securities

Level 2 – Evaluated price based on other significant observable inputs (including quoted prices for similar securities in active markets, quoted prices for identical or similar securities in inactive markets, interest rates, prepayment speeds, credit risk, etc.)

Level 3 – Significant unobservable inputs including the Fund's own assumptions about the assumptions in determining fair value of investments

To the extent that equity securities are actively traded and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy. If the market for a particular security is not active, and the mean price is used, these securities are categorized in Level 2 of the fair value hierarchy. Asset-backed securities, convertible bonds and corporate bonds are generally categorized in Level 2 of the fair value hierarchy. Investments in other mutual funds are categorized as Level 1 in the hierarchy.

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those financial instruments.

The following is a summary of the inputs used to value the Fund's securities as of February 28, 2026:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** | **Total**  |
| Investment Companies  | $60978939 | $— | $— | $60978939  |
| Common Stocks  | 44389453 |  |  | 44389453  |
| Corporate Bonds  |  | 24481398 |  | 24481398  |
| U.S. Treasury Securities  | 2897378 |  |  | 2897378  |
| Short-Term Investments  | 22178 |  |  | 22178 |

---

For further detail on each asset class, see Schedule of Investments.

The Fund also follows authoritative accounting standards, which require additional disclosure regarding fair value measurements. Specifically, these standards require reporting entities to disclose a) the input and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements, for Level 2 or Level 3 positions, b) transfers between all levels (including Level 1 and Level 2) on a gross basis (i.e. transfers out must be disclosed separately from transfers in) as well as the reason(s) for the transfers, and c) purchases and sales on a gross basis in the Level 3 rollforward rather than as one net number. Additionally, reporting entities are required to disclose quantitative information about unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy.

15<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**Direxion Funds** 

**NOTES TO THE FINANCIAL STATEMENTS** 

**February 28, 2026 (Unaudited)(Continued)** 

7. SUBSEQUENT EVENTS

Management has performed an evaluation of subsequent events through the date of the financial statements were issued and has determined that no items require recognition or disclosure besides those noted below.

The Fund paid an income distribution with a record date of February 27, 2026 and ex-date and payable date of March 2, 2026 to its Investor Class shareholders in the amount of $0.0612 per share and to its Institutional Class shareholders in the amount of $0.065 per share.

The Fund paid an income distribution with a record date of March 31, 2026 and ex-date and payable date of April 1, 2026 to its Investor Class shareholders in the amount of $0.0612 per share and to its Institutional Class shareholders in the amount of $0.065 per share.

16<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**DIREXION FUNDS** 

**ADDITIONAL INFORMATION (Unaudited)** 

**FREQUENCY DISTRIBUTION OF PREMIUMS AND DISCOUNTS** 

Information regarding how often shares of the Fund traded on the Exchange at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund is available on the Fund's website www.direxion.com.

**FEDERAL TAX INFORMATION** 

For the fiscal period ended August 31, 2025, certain dividends paid by the Fund may be subject to a maximum tax rate of 15%, as provided for by the Tax Cuts and Jobs Act of 2017. The percentage of dividends declared from ordinary income designated as qualified dividend income was 21.30% for the Fund.

For corporate shareholders, the percent of ordinary income distributions qualifying for the corporate dividends received deduction for the fiscal period ended August 31, 2025, was 13.27% for the Fund.

The percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Section 871(k)(2)(C) was 0.00% for the Fund.

**DISCLOSURE OF PORTFOLIO HOLDINGS** 

The Fund files its complete schedule of portfolio holdings for their first and third fiscal quarters with the Securities and Exchange Commission ("SEC") on Part F of Form N-PORT. The Fund's Part F of Form N-PORT is available without charge, upon request, by calling 1-800-851-0511. Furthermore, you may obtain the Part F of Form N-PORT on the SEC's website at www.sec.gov. The Fund's portfolio holdings are posted quarterly on their website at www.direxion.com.

**PROXY VOTING POLICIES AND PROCEDURES** 

A description of the policies and procedures the Fund uses to determine how to vote proxies related to portfolio securities is provided in the SAI. The SAI is available without charge upon request by calling 1-800-850-0511, by accessing the SEC's website at www.sec.gov or by accessing the Fund's website at www.direxion.com. Information on how the Fund voted proxies related to portfolio securities during the period ended February 28, 2026, is available without charge, upon request, by calling 1-800-851-0511 or by accessing the website of the SEC.

17<br>

------

**[**TABLE OF CONTENTS**](#TOC)**

**DIREXION FUNDS** 

**FORM N-CSR ITEMS (Unaudited)** 

**ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END INVESTMENT COMPANIES** 

There were no changes in or disagreements with accountants during the period covered by this report.

**ITEM 9. PROXY DISCLOSURES FOR OPEN-END INVESTMENT COMPANIES** 

There were no matters submitted to a vote of shareholders during the period covered by this report.

**ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS FOR OPEN-END INVESTMENT COMPANIES** 

The Trust, together with other affiliated trusts, pay each Independent Trustee an aggregate fee consisting of a $225,000 annual retainer (paid in monthly increments) for services provided as a Board member. Such fees are allocated between the Funds and other affiliated funds. Each Fund's share of these fees, together with reimbursable expenses of the Trustees, is reflected on the Statements of Operations as "Trustees fees and expenses".

**ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT** 

Not applicable.

18<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Financial Highlights are included within the financial statements filed under Item 7(a)
 of this Form.

**<u>Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.</u>**

Not applicable to open-end investment companies.

**<u>Item 13. Portfolio Managers of Closed-End Management Investment Companies.</u>**

Not applicable to open-end investment companies.

**<u>Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.</u>**

Not applicable to open-end investment companies.

**<u>Item 15. Submission of Matters to a Vote of Security Holders.</u>**

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's board of trustees.

**<u>Item 16. Controls and Procedures.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;(a) The Registrant's Principal Executive Officer and Principal
 Financial Officer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment
 Company Act of 1940 (the "Act")) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under
 the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded
 that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately
 recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant's service
 provider.

&nbsp;&nbsp;&nbsp;&nbsp;(b) There were no changes in the Registrant's internal control
 over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have
 materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

**<u>Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies</u>**

Not applicable to open-end investment companies.

**<u>Item 18. Recovery of Erroneously Awarded Compensation.</u>**

Not applicable.

**<u>Item 19. Exhibits.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;*(a)* (1) *Any code of ethics or amendment thereto, that is subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit.* Not applicable for semi-annual reports.

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Not applicable.

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(3) *A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a2(a)).* Filed herewith.](df-efp23604_ex99cert.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;*(b)* [*Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* Furnished herewith.](df-efp23604_ex99906cert.htm)

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Direxion Funds

---

| | |
|:---|:---|
| By (Signature and Title) | /s/ Patrick J. Rudnick |
|  | Patrick J. Rudnick, Principal Executive Officer |

---

Date <u>May 7, 2026</u>

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | |
|:---|:---|
| By (Signature and Title) | /s/ Patrick J. Rudnick |
|  | Patrick J. Rudnick, Principal Executive Officer |

---

Date <u>May 7, 2026</u>

---

| | |
|:---|:---|
| By (Signature and Title) | /s/ Corey Noltner |
|  | Corey Noltner, Principal Financial Officer |

---

Date <u>May 7, 2026</u>

## Ex-99.Cert

**EX.99.CERT**

**<u>CERTIFICATIONS</u>**

I, Patrick J. Rudnick, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I
 have reviewed this report on Form N-CSR of Direxion Funds;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact or
 omit to state a material fact necessary to make the statements made, in light of the circumstances
 under which such statements were made, not misleading with respect to the period covered
 by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based
 on my knowledge, the financial statements, and other financial information included in this
 report, fairly present in all material respects the financial condition, results of operations,
 changes in net assets, and cash flows (if the financial statements are required to include
 a statement of cash flows) of the registrant as of, and for, the periods presented in this
 report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The
 registrant's other certifying officer(s) and I are responsible for establishing and
 maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment
 Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d)
 under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures
 to be designed under our supervision, to ensure that material information relating to the
 registrant, including its consolidated subsidiaries, is made known to us by others within
 those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed
 such internal control over financial reporting, or caused such internal control over financial
 reporting to be designed under our supervision, to provide reasonable assurance regarding
 the reliability of financial reporting and the preparation of financial statements for external
 purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated
 the effectiveness of the registrant's disclosure controls and procedures and presented
 in this report our conclusions about the effectiveness of the disclosure controls and procedures,
 as of a date within 90 days prior to the filing date of this report based on such evaluation;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed
 in this report any change in the registrant's internal control over financial reporting
 that occurred during the period covered by this report that has materially affected, or is
 reasonably likely to materially affect, the registrant's internal control over financial
 reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The
 registrant's other certifying officer(s) and I have disclosed to the registrant's
 auditors and the audit committee of the registrant's board of directors (or persons
 performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All
 significant deficiencies and material weaknesses in the design or operation of internal control
 over financial reporting which are reasonably likely to adversely affect the registrant's
 ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any
 fraud, whether or not material, that involves management or other employees who have a significant
 role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | May 7, 2026 | /s/ Patrick J. Rudnick |
|  |  | Patrick J. Rudnick<br> Principal Executive Officer |

---

**<u>CERTIFICATIONS</u>**

I, Corey Noltner, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I
 have reviewed this report on Form N-CSR of Direxion Funds;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact or
 omit to state a material fact necessary to make the statements made, in light of the circumstances
 under which such statements were made, not misleading with respect to the period covered
 by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based
 on my knowledge, the financial statements, and other financial information included in this
 report, fairly present in all material respects the financial condition, results of operations,
 changes in net assets, and cash flows (if the financial statements are required to include
 a statement of cash flows) of the registrant as of, and for, the periods presented in this
 report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The
 registrant's other certifying officer(s) and I are responsible for establishing and
 maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment
 Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d)
 under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures
 to be designed under our supervision, to ensure that material information relating to the
 registrant, including its consolidated subsidiaries, is made known to us by others within
 those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed
 such internal control over financial reporting, or caused such internal control over financial
 reporting to be designed under our supervision, to provide reasonable assurance regarding
 the reliability of financial reporting and the preparation of financial statements for external
 purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated
 the effectiveness of the registrant's disclosure controls and procedures and presented
 in this report our conclusions about the effectiveness of the disclosure controls and procedures,
 as of a date within 90 days prior to the filing date of this report based on such evaluation;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed
 in this report any change in the registrant's internal control over financial reporting
 that occurred during the period covered by this report that has materially affected, or is
 reasonably likely to materially affect, the registrant's internal control over financial
 reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The
 registrant's other certifying officer(s) and I have disclosed to the registrant's
 auditors and the audit committee of the registrant's board of directors (or persons
 performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All
 significant deficiencies and material weaknesses in the design or operation of internal control
 over financial reporting which are reasonably likely to adversely affect the registrant's
 ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any
 fraud, whether or not material, that involves management or other employees who have a significant
 role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | May 7, 2026 | /s/ Corey Noltner |
|  |  | Corey Noltner<br> Principal Financial Officer |

---

## Exhibit 99.906

**EX.99.906CERT**

**<u>Certification Pursuant to Section 906 of the Sarbanes-Oxley Act</u>**

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of the Direxion Funds, does hereby certify, to such officer's knowledge, that the report on Form N-CSR of the Direxion Funds, for the period ended February 28, 2026, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as applicable, and that the information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Direxion Funds for the stated period.

---

| | | |
|:---|:---|:---|
| /s/ Patrick J. Rudnick | /s/ Patrick J. Rudnick | /s/ Corey Noltner |
| Patrick J. Rudnick<br> Principal Executive Officer<br> Direxion Funds | Patrick J. Rudnick<br> Principal Executive Officer<br> Direxion Funds | Corey Noltner<br> Principal Financial Officer<br> Direxion Funds |
| Dated: | May 7, 2026 |  |

---

This statement accompanies this report on Form N-CSR pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed as filed by Direxion Funds for purposes of Section 18 of the Securities Exchange Act of 1934.