Direxion Shares ETF Trust - Direxion Daily MU Bear 1X ETF

Frequently Asked Questions About MUD

What does MUD invest in?

MUD is a short-term tactical tool that aims to deliver -1x the price return, less fees and expenses, for a single day of Micron Technology, Inc. (MU) stock. Purchasers holding shares for longer than a day will need to monitor and rebalance their position frequently to attempt to achieve the -1x multiple. Aside from the inverse exposure, compared to traditional ETFs, the shares take on added volatility due to the lack of diversification. Purchasers should conduct their own individual stock research before initiating a position and trade with conviction. Due to the complexities of the product, shares tend to perform as anticipated only when the underlying shares are trending and holders are on the positive corresponding side of that trade. However, the shares provide the advantage of capping the maximum loss to the full amount invested. Effective February 27, 2026, the fund replaced the term Shares in its name with ETF.

What is the expense ratio of MUD?

Direxion Shares ETF Trust - Direxion Daily MU Bear 1X ETF (MUD) charges an expense ratio of 1.42%. This is the annual fee deducted from fund assets to cover management and operations.

Is MUD a good long-term hold?

MUD is a inverse 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 with 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 MUD's daily reset work?

MUD 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 MUD?

Direxion Shares ETF Trust - Direxion Daily MU Bear 1X ETF (MUD) manages $40.7M 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 MUD actively managed or an index fund?

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