At a glance
EDC charges 1.09% a year. It has $150.3M in assets; it paid 1.78% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +10.3% with distributions reinvested (S&P 500: +11.5%); over three years it returned +44.1% a year. At its worst it fell 73.5% in the 2020 crash (S&P 500: 33.7%) and 72.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 40 months after the lows.
The short version
Direxion Daily MSCI Emerging Markets Bull 3x Shares (EDC) aims to return three times the daily move of the MSCI Emerging Markets Index. It gets most of that exposure through swaps on the iShares MSCI Emerging Markets ETF (EEM). Because its exposure resets every day, results over longer periods can end up far from three times the index. It charges 1.09% a year, and it lost 92.6% from its April 2011 peak to its October 2022 low.
Price history
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EDC +10.3% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| EDC official prospectus, to Dec 31, 2025 | — | +94.85% | — | -8.42% | +3.05% | — |
| EDC price data to Oct 27, 2026 | +14.6% | +10.3% | +44.1% | -4.0% | +1.4% | -0.4% |
- Over the year to Oct 27, 2026, EDC returned +10.3%.
- Its 5-year annualized return was -4.0% and its 10-year +1.4%.
- In the 2020 COVID crash it fell 73.5% and regained its old high 8.2 months after the low.
- Its worst full calendar year was 2011 (-62.7%); its best was 2009 (+165.7%).
- The deepest fall in its price history was 92.6% (Apr 8, 2011 to Oct 24, 2022), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +14.6% | — |
| 2025 | +94.5% | +94.85% |
| 2024 | -2.0% | -1.74% |
| 2023 | +7.5% | +6.37% |
| 2022 | -60.3% | -60.02% |
| 2021 | -20.8% | -20.89% |
| 2020 | +6.1% | +5.79% |
| 2019 | +43.9% | +44.46% |
| 2018 | -49.9% | -49.95% |
| 2017 | +138.6% | +138.80% |
| 2016 | +14.8% | +14.75% |
| 2015 | -49.8% | — |
| 2014 | -20.1% | — |
| 2013 | -21.2% | — |
| 2012 | +46.6% | — |
| 2011 | -62.7% | — |
| 2010 | +23.9% | — |
| 2009 | +165.7% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 73.5% over that stretch · deepest drop along the way 73.5%, back to its old high 8.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 69.8% over that stretch · deepest drop along the way 72.5%, back to its old high 40 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.0000 | |
| 2025 | $0.9900 | -13.2% |
| 2024 | $1.1400 | +5.6% |
| 2023 | $1.0800 | +730.8% |
| 2021 | $0.1300 | -68.3% |
| 2020 | $0.4100 | -52.9% |
| 2019 | $0.8700 | +77.6% |
| 2018 | $0.4900 | +53.1% |
| 2017 | $0.3200 | +166.7% |
| 2012 | $0.1200 | -98.4% |
| 2011 | $7.4533 | +440.4% |
| 2010 | $1.3792 | -75.6% |
| 2009 | $5.6600 |
What's inside
As of Jul 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (94.34% of net assets), with its exposure coming from 6 swap and futures positions rather than from owning the stocks outright.
| Holding | Weight | |
|---|---|---|
| ISHARES MSCI EMERGING MARKET | 8.87% |
By country
United States 8.87%By asset type
Stocks 8.87%What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $34.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +19.81%, -4.57%, -20.70%.
How it works
EDC follows an index of large and mid-sized companies in 24 emerging market countries, including China, India, Taiwan, Korea, Brazil, Saudi Arabia and South Africa. The index is weighted by free float-adjusted market value. That means companies count for more when the shares available to public investors are worth more. As of December 31, 2025, the index had 1,197 stocks, mostly in financials and information technology. It is reviewed every quarter.
The fund does not simply buy those 1,197 stocks. It mostly uses swaps, which are contracts where a bank agrees to pay the fund the return of an asset, plus futures. As of July 31, 2026, about 8.9% of net assets sat in EEM shares, and six derivative positions, mostly EEM swaps, made up the rest of the exposure. Cash and short-term holdings were 94.34% of net assets. If a swap bank fails to pay, the fund can lose money. Portfolio turnover was 347%.
At each day's close, Rafferty Asset Management resets exposure to three times net assets. It adds exposure after up days and cuts it after down days. Each day's return then compounds on the last. If the index ends flat over time, the fund loses money. It can even lose money while the index rises.
What it really costs
- EDC charges 1.09% a year.
- Of that, 0.75% is the management fee; the rest covers other fund expenses.
- The fee includes a 0.03% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $111 in the first year and $1,360 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| EDC | $111 | $353 | $614 | $1,360 |
Structure and tax notes
- Resets its exposure every day. Over periods longer than a day, compounding means returns can differ sharply from 3× the index — usually worse in choppy markets. Built for short-term trading, not buy-and-hold.
In a retirement portfolio
The prospectus says EDC targets three times the index for a single day only, and its multi-year losses have been severe.
History shows the cost of holding EDC for longer than a day. In the 2020 COVID crash it fell 73.5% in about a month, then recovered by November 2020. In the 2022 bear market it dropped 72.5% and needed about 40 months, until February 2026, to get back to its 2022 high. Its worst calendar year was 2011, at −62.7%. From its April 2011 peak to its October 2022 low it lost 92.6%, and it still had not regained that peak as of October 27, 2026. Anyone who has to sell shares in a bad year could lock in losses that are very hard to recover from.
Its trailing yield was 1.78% as of October 27, 2026, paid quarterly. That is small next to its swings. Its 1.09% expense ratio is high. Past results don't predict the future, and a retirement plan needs to weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Experienced traders who want magnified one-day exposure to emerging market stocks and can handle 76.3% one-year volatility (as of October 27, 2026).
- Short-term traders who want leveraged emerging markets exposure through a listed ETF instead of setting up their own swap or futures accounts.
- Active investors who check positions daily and accept paying 1.09% a year for a position held for days rather than years.
Look elsewhere if
- Retirees or savers looking for a long-term emerging markets holding. EDC lost 92.6% from its 2011 peak and hadn't recovered by October 27, 2026.
- Income seekers. Its 1.78% trailing yield, paid quarterly, is small next to swings like the 66.61% loss in the first quarter of 2020.
- Anyone who can't watch positions daily. Compounding means returns over several months can differ sharply from three times the index, or even turn negative.
Close alternatives
Matched by leveraged/inverse funds on the same index (the index could not be identified from the name).
No close alternatives found.
Questions investors ask
Is EDC good for long-term investing?
It isn't built for that. The prospectus says EDC seeks three times the index's return for one trading day only. Over longer periods, daily compounding can pull results far from that target. As of December 31, 2025, its average annual return was −8.42% over five years and 3.05% over ten years. It lost 60.02% in 2022 alone. From its 2011 peak to its 2022 low it fell 92.6%.
Why can EDC lose money even when emerging markets go up?
The cause is the daily reset. At each close, the fund adjusts its exposure back to three times its net assets, and each day's return compounds on the previous one. In choppy markets, losses on down days shrink the base that later gains build on. The prospectus says the fund will lose money if the index ends flat over time. It can even lose money over a period when the index rises.
Does EDC pay dividends?
Yes. EDC pays distributions quarterly. Over the 12 months to October 27, 2026, it paid about $1.10 per share, a trailing yield of 1.78%. Much of the fund sits in cash and short-term holdings, which earn interest, alongside its EEM shares. The payout is small compared with the fund's price swings. Its one-year volatility was 76.3% as of October 27, 2026, so income is not the main reason people trade it.
What's the difference between EDC and EEM?
EEM, the iShares MSCI Emerging Markets ETF, owns emerging market stocks directly and aims to match its index over time without leverage. EDC uses swaps on EEM, plus a small direct stake in EEM (about 8.9% of net assets as of July 31, 2026), to target three times EEM's index for a single day. EDC resets daily, so over months or years its results can differ sharply from three times EEM's.
What is EDC's expense ratio?
EDC's expense ratio is 1.09%, according to its prospectus filed February 26, 2026. That includes a 0.75% management fee. In the SEC's standard example, $10,000 invested with a 5% annual return would cost about $111 in fees over one year, $353 over three years, $614 over five years and $1,360 over ten years. Trading costs from its 347% portfolio turnover are not included in the expense ratio.