At a glance
EDZ charges 1.05% a year. It has $19.2M in assets; it paid 4.85% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −47.8% with distributions reinvested (S&P 500: +11.5%); over three years it returned −49.8% a year. At its worst it fell 21.4% in the 2020 crash (S&P 500: 33.7%) and 33.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high within a month and 1 month after the lows.
The short version
Direxion Daily MSCI Emerging Markets Bear 3X Shares (EDZ) uses swaps to aim for three times the opposite of the MSCI Emerging Markets Index's daily move. Traders may use it to bet on, or hedge against, a brief drop in emerging-market stocks. Its exposure resets every day, it costs 1.05% a year, and it lost 98% over the 10 years through October 27, 2026, so it is built for days, not decades.
Price history
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EDZ -47.8% 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 | |
|---|---|---|---|---|---|---|
| EDZ official prospectus, to Dec 31, 2025 | — | -59.53% | — | -17.30% | -33.21% | — |
| EDZ price data to Oct 27, 2026 | -49.0% | -47.8% | -49.8% | -25.3% | -33.0% | -39.8% |
- Over the year to Oct 27, 2026, EDZ returned -47.8%.
- Its 5-year annualized return was -25.3% and its 10-year -33.0%.
- In the 2020 COVID crash, while stocks fell, it gained 117.9%.
- Its worst full calendar year was 2009 (-92.6%); its best was 2022 (+49.3%).
- The deepest fall in its price history was 100% (Mar 2, 2009 to Jun 22, 2026), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -49.0% | — |
| 2025 | -60.1% | -59.53% |
| 2024 | -12.6% | -12.52% |
| 2023 | -20.3% | -19.53% |
| 2022 | +49.3% | +49.06% |
| 2021 | -8.7% | -8.97% |
| 2020 | -68.8% | -68.70% |
| 2019 | -43.0% | -43.18% |
| 2018 | +34.5% | +33.16% |
| 2017 | -64.1% | -64.19% |
| 2016 | -46.3% | -46.17% |
| 2015 | +25.3% | — |
| 2014 | -5.8% | — |
| 2013 | -11.7% | — |
| 2012 | -54.2% | — |
| 2011 | -3.0% | — |
| 2010 | -59.3% | — |
| 2009 | -92.6% | — |
| 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 | Gained 117.9% over that stretch · deepest drop along the way 21.4%, back to its old high 0.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 119.5% over that stretch · deepest drop along the way 33.4%, back to its old high 1.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.6500 | |
| 2025 | $1.3100 | -70.9% |
| 2024 | $4.5000 | -4.3% |
| 2023 | $4.7000 | +422.2% |
| 2020 | $0.9000 | -83.9% |
| 2019 | $5.6000 | -34.1% |
| 2018 | $8.5000 |
What's inside
As of Jul 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (110.18% of net assets), with its inverse exposure coming from 3 swap and futures positions rather than from owning the stocks outright.
| Holding | Weight |
|---|
By country
By asset type
What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $9.1M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -21.12%, -7.42%, +16.70%.
How it works
EDZ is built on the MSCI Emerging Markets Index. The index holds large and mid-sized companies in 24 emerging-market countries, including China, India and Taiwan, and weights them by free float-adjusted market value. Only shares available to public investors count, and bigger companies carry more weight. As of December 31, 2025, the index had 1,197 stocks, concentrated in financials and information technology. It is reviewed quarterly.
EDZ normally puts at least 80% of net assets into swaps, futures or short positions that gain when the index falls, aiming for -3 times its daily return. A swap is a contract in which another firm, the counterparty, exchanges payments with the fund based on an asset's return. As of July 31, 2026, the fund held three swaps on the iShares MSCI Emerging Markets ETF, plus cash-like holdings worth about 110% of its $19.2 million in net assets.
At each day's close, Rafferty Asset Management, the adviser, resizes the bet: larger after the index falls, smaller after it rises. Because daily returns compound, results over longer periods will very likely differ from -3 times the index, often for the worse. The fund loses money if the index ends flat, and it can lose even when the index falls. Unlike most ETFs, it creates and redeems shares mainly for cash, so it is not expected to be tax efficient.
What it really costs
- EDZ charges 1.05% a year.
- Of that, 0.75% is the management fee; the rest covers other fund expenses.
- The fee includes a 0.42% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $107 in the first year and $1,721 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| EDZ | $107 | $424 | $763 | $1,721 |
Structure and tax notes
- Resets its inverse 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
EDZ targets -3 times the index's return for a single day, and its daily reset has led to steep losses for anyone holding it over months or years.
EDZ did jump when markets slumped. It gained 117.9% during the 2020 COVID crash and 119.5% during the 2022 bear market. The gains didn't last, and it still lost 68.7% in calendar 2020. It launched in December 2008, too late for the 2008 crash. Its worst calendar year was 2009, down 92.6%. From its March 2, 2009, peak it fell nearly 100% by June 22, 2026, and it has not recovered.
Using EDZ to cover withdrawals in a bad year would take near-perfect timing, and holding it for years has meant deep losses. A 4.85% yield as of October 27, 2026, paid quarterly, did little against a 49% loss in 2026 through that date. Costs run 1.05% a year, or $1,721 over 10 years on $10,000 in the SEC's standard example. Past results don't predict the future, and a plan needs to look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Active traders who want to profit from, or hedge against, a short-lived fall in emerging-market stocks and can monitor positions every day.
- Experienced investors who understand that daily resets and compounding can make results over weeks differ sharply from -3 times the index.
- Traders comfortable with 75.2% annualized volatility, a measure of price swings, in the year to October 27, 2026, and possible total loss.
Look elsewhere if
- Retirees and long-term holders: EDZ charges 1.05% a year and lost 98% over the 10 years through October 27, 2026.
- Investors wanting a lasting hedge on emerging markets: the prospectus warns it can lose money over time even while the index falls.
- Income seekers: the 4.85% yield as of October 27, 2026, paid quarterly, came alongside a 49% loss in 2026 through that date.
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
What does 3X bear mean for EDZ?
It means EDZ aims to return three times the opposite of the MSCI Emerging Markets Index's move over a single trading day. “Bear” signals that it is built to gain when prices fall. A down day for emerging-market stocks helps it, and an up day hurts it, roughly three times over. It uses swaps and futures rather than stocks and resets its exposure at each close, so results over weeks or months can differ sharply from -3 times the index.
Is EDZ good for long-term investors?
Its long-term record is very poor. According to the prospectus, EDZ's average annual return was -33.21% over the 10 years ended December 31, 2025. It lost 98% in total over the 10 years through October 27, 2026. Daily resets work against long holding periods: the prospectus warns that the fund loses money if the index is flat over time and can lose even while the index falls. It also warns that holders could lose all of their money.
Is EDZ a good hedge against an emerging markets crash?
Only for short stretches, based on its record. EDZ gained 117.9% during the 2020 COVID crash and 119.5% during the 2022 bear market. But timing mattered. Its strongest quarter, up 47.85%, ended March 31, 2020, and its weakest, down 47.31%, came right after, ending June 30, 2020. The fund lost 68.7% for calendar 2020. Because its exposure resets daily, a hedge held for months can drift far from -3 times the index.
Does EDZ pay dividends?
Yes, EDZ pays distributions quarterly. Its yield over the prior year was 4.85% as of October 27, 2026, or $0.85 per share, adjusted for splits. The fund holds mostly cash-like assets, such as money market funds and short-term government debt, which earn interest. The payouts did little to offset losses: the fund fell 49% in 2026 through October 27, 2026. Because it creates and redeems shares mainly for cash, it is not expected to be tax efficient.
What's the difference between EDZ and the iShares MSCI Emerging Markets ETF?
They move in opposite directions. A traditional index ETF such as the iShares MSCI Emerging Markets ETF rises when emerging-market stocks rise. As of July 31, 2026, EDZ held no stocks. Its exposure came from three swaps tied to that iShares fund, aiming for -3 times the index's daily return. EDZ also charges 1.05% a year and resets daily, so it is designed for short-term trading, while a traditional index fund is built to be held.