Direxion Daily S&P 500 Bear 1X ETF

Frequently Asked Questions About SPDN

What does SPDN invest in?

The Direxion Daily S&P 500 Bear 1X ETF (SPDN) aims to provide daily investment returns that mirror the S&P 500 Index's performance in the opposite direction. Specifically, its objective is to deliver 100% of the S&P 500's inverse daily movement, excluding its own fees and expenses. It is important to note, however, that the fund does not guarantee it will consistently achieve this stated daily target.

What is the expense ratio of SPDN?

Direxion Daily S&P 500 Bear 1X ETF (SPDN) charges an expense ratio of 0.54%. This is the annual fee deducted from fund assets to cover management and operations.

Is SPDN a good long-term hold?

SPDN 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 SPDN's daily reset work?

SPDN 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 SPDN?

Direxion Daily S&P 500 Bear 1X ETF (SPDN) manages $299.7M 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 SPDN actively managed or an index fund?

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