Direxion Daily S&P 500 High Beta Bull 3X Shares

Direxion Daily S&P 500 High Beta Bull 3X Shares (HIBL) uses swaps and stocks to aim for three times the daily return of the S&P 500 High Beta Index. That index holds the 100 S&P 500 stocks that react most sharply to market moves. The fund resets its leverage every day, so results over longer periods can differ widely from 3×. It costs 0.98% a year, and at its worst it fell 88.3%.

• Over the year to Oct 27, 2026, HIBL returned +34.8%, 1st of 6 among similar funds.
• Its 5-year annualized return was +5.3%.
• In the 2020 COVID crash it fell 86% and regained its old high 11 months after the low.
• Its worst full calendar year was 2022 (-68.2%); its best was 2021 (+129.2%).
• The deepest fall in its price history was 88.3% (Jan 17, 2020 to Apr 3, 2020), recovered by Feb 19, 2021.

As of Jul 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (36.02% 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 $4.4M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +35.68%, +6.44%, -30.08%.

The index comes from S&P Dow Jones Indices. It ranks every S&P 500 stock by beta, a measure of how strongly a stock's daily price moved compared with the market over the past 12 months. The 100 highest-beta stocks make the cut. A stock needs 252 days of price history to qualify. The index is reviewed and rebalanced quarterly. As of December 31, 2025, it leaned toward technology, financial and consumer discretionary stocks. As of July 31, 2026, the largest stock positions were Robinhood (1.3%), Micron (1.2%), Sandisk (1.1%), Dell (1.1%) and United Airlines (1.0%). The top 10 made up only 10.6% of the fund.

To reach 3× exposure, the adviser, Rafferty Asset Management, combines index stocks with swap agreements. A swap is a contract in which a bank pays the fund the index's return. The fund can also use futures. As of July 31, 2026, stocks were 67.6% of net assets and cash and short-term holdings were 36%, and the fund held five index swaps. Swaps add counterparty risk: the bank on the other side might fail to pay.

At each market close, the fund resets its exposure. It adds exposure after up days and cuts it after down days. This drove portfolio turnover of 165%. Because daily returns compound, the fund can lose money when the index ends flat, or even when the index rises over time. The prospectus warns that holders could lose their entire investment.

• HIBL charges 0.98% 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 $100 in the first year and $1,234 over 10 years (assuming a 5% annual return).

The prospectus says the fund targets 3× returns for a single day only, and its losses in past downturns were severe and slow to recover.

HIBL launched in November 2019, so it has no record from the 2008 crisis. In the 2020 COVID crash it fell 86% and took about 11 months to recover. Its deepest drop was 88.3%, from January to April 2020. In the 2022 bear market it fell 75% and did not recover until January 2026, about 39 months later. Its worst calendar year was 2022, at -68.2%. Anyone who had to sell shares or draw cash during those stretches would have locked in very large losses. The trailing 12-month yield was 1.67% as of October 27, 2026, paid twice a year. That is small next to the fund's swings and its 0.98% expense ratio. Past results don't predict future returns, and any plan should look at the whole portfolio, not one fund.

Matched by leveraged/inverse funds on the same index (s&p 500), same direction.