Direxion Daily Energy Bull 2X Shares

Direxion Daily Energy Bull 2X Shares (ERX) is a leveraged ETF that aims to deliver twice the daily return of the Energy Select Sector Index, which holds the S&P 500's energy companies, led by Exxon Mobil and Chevron. The fund resets its leverage every day, so results over weeks or years can stray far from twice the index. It charges 0.91% a year, and it fell 99.5% from its June 2014 peak to March 2020.

• Over the year to Oct 27, 2026, ERX returned +127.5%, 5th of 7 among similar funds.
• Its 5-year annualized return was +34.5% and its 10-year -7.2%.
• In the 2020 COVID crash it fell 95.4% and regained its old high 77.3 months after the low.
• Its worst full calendar year was 2020 (-91.6%); its best was 2022 (+130.8%).
• The deepest fall in its price history was 99.5% (Jun 23, 2014 to Mar 23, 2020), not yet recovered.

As of Jul 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (27.98% of net assets), with its 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 $34.8M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -11.83%, -10.34%, +24.30%.

ERX tracks the Energy Select Sector Index from S&P Dow Jones Indices, one of 11 Select Sector indexes. Every member must be in the S&P 500. Each must also belong to the oil, gas and consumable fuels industry or the energy equipment and services industry under GICS, a standard system that sorts companies by their business. Weights follow a "modified market capitalization" method. Larger companies count for more, but a single stock's weight can be trimmed to meet tax rules. The index had 22 constituents as of December 31, 2025, and it rebalances quarterly.

To get twice the exposure, the adviser, Rafferty Asset Management, combines index stocks with swaps. A swap is a contract in which a bank agrees to pay the index's return. As of July 31, 2026, stocks made up 70.6% of net assets, led by Exxon Mobil (14.6%), Chevron (10.8%) and ConocoPhillips (4.3%). Five swaps on the index were valued at 15.4% of net assets, and cash and short-term holdings made up about 28%.

At each market close, Rafferty resets the fund's exposure to 2x. It adds exposure after up days and cuts it back after down days. Because returns compound daily, results over longer periods will very likely differ from twice the index. The prospectus warns that the fund will lose money if the index is flat over time, and that it could lose money even while the index rises.

• ERX charges 0.91% a year.
• Of that, 0.75% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $93 in the first year and $1,120 over 10 years (assuming a 5% annual return).

Its daily 2x reset is built for one-day trades, and holding it for years has led to losses as deep as 99.5%.

ERX magnifies one sector's swings; it does not add stability. In the COVID crash it lost 95.4% between February 19 and March 23, 2020. It took about 77 months, until September 1, 2026, to get back to that level. Its worst calendar year was 2020, when it fell 91.6%. From its June 2014 peak to March 2020 it fell 99.5%, and it had not regained that peak as of October 27, 2026. In the 2022 bear market it gained 84.3%, but it still dropped 46.9% in five weeks that summer. It launched in November 2008, so its record doesn't cover the full 2008 crisis.

Selling in a year like 2020 would lock in near-total losses. The fund yielded 1.14% as of October 27, 2026, paid quarterly. That does little to offset its 0.91% expense ratio or its price swings. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

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