At a glance
PALD charges 1.02% a year. It has $2.4M in assets; it paid 6.01% of its price in distributions over the past 12 months, semiannual. Over the past year it returned −54.4% with distributions reinvested (S&P 500: +11.5%).
The short version
Direxion Daily PANW Bear 1X Shares (PALD) uses swap agreements to deliver the opposite of Palo Alto Networks' (PANW) stock return each trading day, before fees. It lets traders bet against one cybersecurity stock without shorting it directly, but exposure resets daily, so longer-term results can stray far from the inverse of PANW's move. It costs 1.02% a year, and net assets were about $2.4 million as of July 31, 2026.
Price history
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PALD -54.4% 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 | |
|---|---|---|---|---|---|---|
| PALD price data to Oct 27, 2026 | -61.8% | -54.4% | — | — | — | -46.8% |
- Over the year to Oct 27, 2026, PALD returned -54.4%.
- The deepest fall in its price history was 70.9% (Feb 24, 2026 to Oct 6, 2026), not yet recovered.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -61.8% |
| 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 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.1400 |
What's inside
As of Jul 31, 2026, the fund held 0 securities; the ten largest made up 0% of assets, and 113.09% sat in cash and money-market holdings.
| Holding | Weight |
|---|
By country
By asset type
What changed recently
- Over the three months to Jul 31, 2026, investors added a net $1.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -37.91%, -19.13%, +1.10%.
How it works
PALD, managed by Rafferty Asset Management, does not track an index or pick stocks. It seeks the opposite of Palo Alto Networks' (PANW) daily stock return, before fees. When PANW falls on a given day, the fund aims to rise by the same percentage, and vice versa. A "day" runs from one market close to the next, so shares purchased partway through a session can see a different result.
The fund gets this exposure through swap agreements with major financial institutions. A swap is a contract where two parties trade returns: the fund gains when PANW falls and pays when PANW rises, sized at -100% of its net assets. The fund's own assets sit mostly in money market funds, bank deposits and short-term, high-quality debt such as US government securities. As of July 31, 2026, cash and similar holdings equaled about 113% of net assets, offset by four PANW swaps worth a combined -12%.
At each market close, the adviser rebalances: it adds short exposure after PANW falls and trims it after PANW rises. Because each day's return compounds on the last, results over weeks or months will very likely differ from the inverse of PANW's return. The prospectus warns the fund loses money if PANW is flat over time and can lose money even while PANW declines.
What it really costs
- PALD charges 1.02% a year.
- Of that, 0.75% is the management fee; the rest covers other fund expenses.
- The fee includes a 1.31% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $104 in the first year and $2,565 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| PALD | $104 | $602 | $1,126 | $2,565 |
In a retirement portfolio
PALD resets its inverse bet on a single stock every day, so its results over months can stray far from the opposite of PANW's move, and it lost 70.9% from February to October 2026.
PALD launched on March 26, 2025, so it has no record from the 2008 financial crisis, the 2020 COVID crash or the 2022 bear market. Its short history is harsh. The fund fell 70.9% from February 24 to October 6, 2026, and had not recovered as of October 27, 2026. Over the year to that date it lost 54.4%. Anyone who had to raise cash after a drop like that would lock in the loss. An inverse fund can look like a crash hedge, but this one offsets only one stock, and only day to day. Its trailing yield was 6.01% ($0.54 per share over the prior year, paid semiannually) as of October 27, 2026. That income is small next to its swings, and the fund costs 1.02% a year.
Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Active traders who expect Palo Alto Networks shares to fall over a single day and can monitor positions daily.
- Holders of a large PANW stake seeking a brief, day-to-day offset without borrowing shares to short the stock.
- Traders who accept swap counterparty risk and a 1.02% expense ratio in exchange for one-for-one inverse exposure to PANW.
Look elsewhere if
- Retirees and long-term holders: daily resets make returns drift over time, and PALD lost 54.4% in the year to October 27, 2026.
- Income seekers: the 6.01% trailing yield, paid semiannually, sits beside a 70.9% fall from February 24 to October 6, 2026.
- Anyone wanting diversification or a larger fund: PALD bets against one stock, launched March 2025 and held about $2.4 million as of July 31, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
No close alternatives found.
Questions investors ask
Is PALD a good long-term investment?
It isn't built for long-term holding. PALD seeks the opposite of Palo Alto Networks' return for one day only. Because its exposure resets daily and returns compound, the prospectus says longer-term results will very likely differ from the inverse of PANW's return, and the fund can lose money even when PANW falls over time. As of October 27, 2026, PALD had lost 54.4% over one year and 46.8% since its March 26, 2025 launch.
How does PALD bet against Palo Alto Networks?
It uses swap agreements rather than shorting shares. A swap is a contract in which two parties exchange returns. PALD's counterparties, major financial institutions, pay the fund when Palo Alto Networks falls and collect when it rises, with exposure sized at -100% of net assets. As of July 31, 2026, cash and similar holdings equaled about 113% of net assets, offset by four PANW swaps worth about -12% combined. If a counterparty fails to pay, the fund can lose money.
Does PALD pay dividends?
Yes, semiannually. PALD paid $0.54 per share over the prior year, a trailing yield (income paid over the past year divided by share price) of 6.01% as of October 27, 2026. The fund does not own Palo Alto Networks shares. Its assets sit mainly in money market funds, deposits and short-term, high-quality debt, which earn interest. That payout looks modest beside the fund's price swings: its shares fell 61.8% from the start of 2026 through October 27, 2026.
What's the difference between PALD and shorting PANW stock?
The biggest differences are daily resets, maximum loss and cost. Shorting PANW directly means borrowing shares through a margin account, and losses can keep growing as long as the stock climbs. With PALD, the most you can lose is the amount invested, though the prospectus warns you could lose all of it. On the other hand, PALD resets its exposure daily, so longer-term results drift from PANW's inverse return, and it charges 1.02% a year.
What is PALD's expense ratio?
PALD's expense ratio, the yearly cost taken from fund assets, is 1.02%, per its prospectus filed February 26, 2026. That includes a 0.75% management fee and reflects a 1.31% fee waiver. In the SEC's standard example, $10,000 invested at a 5% yearly return would cost $104 after one year, $602 after three, $1,126 after five and $2,565 after ten, assuming shares are redeemed at each period's end. SEC examples typically count a waiver only for its contract term, so later costs climb faster.