Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X Shares

Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X Shares (DRIP) aims to return twice the opposite of a single day's move in an equal-weighted index of US oil and gas companies. It does this with swap contracts instead of owning stocks. It resets every day, so over longer periods its results can drift far from -2x the index. It costs 1.01% a year. As of October 27, 2026, it had lost about 66% over one year.

• Over the year to Oct 27, 2026, DRIP returned -65.7%, 3rd of 7 among similar funds.
• Its 5-year annualized return was -41.3% and its 10-year -46.6%.
• In the 2020 COVID crash, while stocks fell, it gained 101.6%.
• Its worst full calendar year was 2016 (-87.5%); its best was 2018 (+49.1%).
• The deepest fall in its price history was 100% (Jan 20, 2016 to Oct 26, 2026), not yet recovered.

As of Jul 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (105.37% of net assets), with its inverse exposure coming from 5 swap and futures positions rather than from owning the stocks outright.

• Over the three months to Jul 31, 2026, investors withdrew a net $30.4M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +15.95%, +10.74%, -25.60%.

DRIP follows the S&P Oil & Gas Exploration & Production Select Industry Index from S&P Dow Jones Indices. The index takes US companies from the S&P Total Market Index that are in three groups: integrated oil and gas, exploration and production, and refining and marketing. Each company must also pass size and trading screens, such as a float-adjusted market value above $300 million (counting only shares that trade freely) plus enough trading volume. The index is modified equal-weighted, so smaller producers count about as much as the giants. It rebalances quarterly and keeps at least 22 stocks. It had 51 as of December 31, 2025.

DRIP does not own these stocks. It mostly uses swap agreements, which are contracts where a bank pays the fund based on the index's moves. It may also use futures. It holds cash, money market funds and short-term government debt as backing. As of July 31, 2026, the fund held five index swaps and cash equal to about 105% of its $100.3 million in net assets. It held no stocks. If a swap bank fails to pay, the fund can lose money.

At each day's close, Rafferty Asset Management adjusts the fund's exposure so it starts the next day at -2x again. Because of this daily reset, returns over weeks or months compound in ways that usually hurt in choppy markets. Creations and redemptions are mostly in cash, so the fund is not expected to be tax-efficient.

• DRIP charges 1.01% a year.
• Of that, 0.75% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.02% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $103 in the first year and $1,258 over 10 years (assuming a 5% annual return).

DRIP's daily-reset, -2x inverse design is made for one-day bets, and over the long run it has lost nearly all its value.

DRIP launched in May 2015, so it has no 2008 record. In the 2020 COVID crash it gained 101.6% between the market's peak and its low, but it also fell 55.6% over a few days that March. During the 2022 bear market it lost 69.6%. Its worst calendar year was 2016, when it fell 87.57%. From January 2016 to October 26, 2026, it lost close to 100% of its value and never recovered. Anyone who had to sell during a stretch like that would have locked in deep losses. The trailing yield was 4.24% as of October 27, 2026, paid quarterly, but price losses have dwarfed that income. Expenses are 1.01% a year. Past results don't predict the future, and a retirement plan should look at the whole portfolio, not one fund.

Matched by leveraged/inverse funds on the same index (energy), same direction.