Direxion Daily TSM Bear 1X ETF

Frequently Asked Questions About TSMZ

What does TSMZ invest in?

These Direxion funds, the Daily TSM Bull 2X ETF and the Daily TSM Bear 1X ETF, endeavor to deliver daily investment outcomes, unburdened by fees and expenses. The Bull ETF’s objective is to capture double the daily price movement of Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM) common shares. Conversely, the Bear ETF is structured to reflect the exact opposite of TSM’s daily stock performance.

What is the expense ratio of TSMZ?

Direxion Daily TSM Bear 1X ETF (TSMZ) charges an expense ratio of 1.47%. This is the annual fee deducted from fund assets to cover management and operations.

Is TSMZ a good long-term hold?

TSMZ 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 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 TSMZ's daily reset work?

TSMZ 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 TSMZ?

Direxion Daily TSM Bear 1X ETF (TSMZ) manages $2.6M 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 TSMZ actively managed or an index fund?

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