Direxion Daily Small Cap Bear 3X ETF

Frequently Asked Questions About TZA

What does TZA invest in?

The Direxion Daily Small Cap Bull and Bear 3X Shares are designed to generate daily investment outcomes, before deductions for fees and expenses, that correspond to 300% of the daily performance of the Russell 2000 Index, or 300% of its inverse. However, there is no certainty that these funds will consistently meet their specified targets.

What is the expense ratio of TZA?

Direxion Daily Small Cap Bear 3X ETF (TZA) charges an expense ratio of 0.99%. This is the annual fee deducted from fund assets to cover management and operations.

Is TZA a good long-term hold?

TZA 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 TZA's daily reset work?

TZA 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 TZA?

Direxion Daily Small Cap Bear 3X ETF (TZA) manages $234.4M 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 TZA actively managed or an index fund?

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