Direxion Daily Technology Bear 3X ETF

Frequently Asked Questions About TECS

What does TECS invest in?

These Direxion Daily Technology Bull and Bear 3X ETFs are designed to generate daily returns that, before accounting for fees and charges, either amplify (300%) or inversely multiply (300%) the performance of the Technology Select Sector Index. However, there is no assurance that these funds will consistently achieve their stated investment targets.

What is the expense ratio of TECS?

Direxion Daily Technology Bear 3X ETF (TECS) charges an expense ratio of 1.01%. This is the annual fee deducted from fund assets to cover management and operations.

Is TECS a good long-term hold?

TECS 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 TECS's daily reset work?

TECS 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 TECS?

Direxion Daily Technology Bear 3X ETF (TECS) manages $68.6M 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 TECS actively managed or an index fund?

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