Direxion Daily MSCI Emerging Markets Bull 3X Shares

Frequently Asked Questions About EDC

What does EDC invest in?

EDC is an aggressive one-day bet on the widely followed MSCI Emerging Markets Index. The fund promises to provide 300% of the return of the index, which is a cap-weighted composite of emerging markets firms covering 85% of the market cap in those countries every day. This means heavy exposure to financials and technology, as well as to firms in China, South Korea, and Taiwan. As with most leveraged funds, it's designed to provide this exposure only for one trading day. Holding the fund for longer than one day will expose investors to the effects of compounding and may create significant drift between the expected return and what is actually realized. Also, consider that EDC is designed to be a short-term trading vehicle, not a long-term investment, so trading costs have a bigger impact than the expense ratio. Effective February 27, 2026, the fund replaced the term Shares in its name with ETF.

What is the expense ratio of EDC?

Direxion Daily MSCI Emerging Markets Bull 3X Shares (EDC) charges an expense ratio of 1.12%. This is the annual fee deducted from fund assets to cover management and operations.

Is EDC a good long-term hold?

EDC is a leveraged fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple — typically negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days.

How does EDC's daily reset work?

EDC rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level — so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets.

How big is EDC?

Direxion Daily MSCI Emerging Markets Bull 3X Shares (EDC) manages $161.2M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is EDC actively managed or an index fund?

EDC's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.