Direxion Daily Semiconductor Bear 3x Shares

Direxion Daily Semiconductor Bear 3x Shares (SOXS) uses swaps and other derivatives to aim for three times the opposite of one day's move in an index of the 30 largest US-listed semiconductor companies. It resets its exposure every day, so over longer stretches its results can drift far from -3x the index. It charges 1.00% a year and lost value in every calendar year from 2016 through 2025 except 2022.

• Over the year to Oct 27, 2026, SOXS returned -92.7%.
• Its 5-year annualized return was -78.6% and its 10-year -77.8%.
• In the 2020 COVID crash, while stocks fell, it gained 79.5%.
• Its worst full calendar year was 2020 (-93.2%); its best was 2022 (+15.7%).
• The deepest fall in its price history was 100% (Aug 31, 2010 to Oct 5, 2026), not yet recovered.

As of Jul 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (104.72% of net assets), with its inverse exposure coming from 8 swap and futures positions rather than from owning the stocks outright.

• Over the three months to Jul 31, 2026, investors added a net $1.04B (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -52.31%, -48.50%, +67.62%.

SOXS follows an index of the 30 largest US-listed semiconductor companies, as sorted by ICE's industry classification. The index includes chip and chip-material makers, LED and OLED companies, and firms that supply packaging, testing and equipment. It is weighted by modified float-adjusted market value. That means larger companies count for more, based on the shares the public can actually trade, with adjustments to limit concentration. The index is rebalanced quarterly and reconstituted (its member list refreshed) once a year. The fund is non-diversified, so its exposure leans heavily on a small group of companies in a single industry.

The fund does not own chip stocks or short them directly in the usual way. Instead it mostly uses swap agreements, which are contracts in which a bank pays the fund based on an index's moves, along with futures. On July 31, 2026, it reported eight derivative positions, mainly swaps on the ICE Semiconductor Index, and cash-type holdings equal to about 105% of net assets. That cash sits in money market funds, deposits and short-term government debt.

Rafferty Asset Management resets the fund's exposure at each market close. When chip stocks fall, the fund's assets grow and its exposure is increased. When they rise, its exposure is cut. Because each day's result compounds on the last, the fund can lose money if the index ends flat, and even if the index falls over time. The fund also creates and redeems shares mainly for cash, which makes it less tax-efficient than most ETFs.

• SOXS charges 1% 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 $102 in the first year and $1,225 over 10 years (assuming a 5% annual return).

The fund targets -3x returns for a single day only, and its daily reset has wiped out nearly all its value over the long run.

SOXS gained 79.5% during the early-2020 COVID crash and 141.4% during the 2022 bear market. Even in 2022, though, it fell 54.3% between July 1 and August 15. It launched in 2010, so it has no record from the 2008 crisis. Its worst calendar year was 2020, when it lost 92.88%. From its August 2010 peak to October 5, 2026, it lost nearly all of its value and has not recovered. Anyone who needed to draw money from it in a bad year could find little left.

The trailing yield was 25.74% as of October 27, 2026, paid quarterly. That yield is measured against a share price that fell 92% in 2026 through that date, so it is not steady income. Expenses are 1.00% a year, or $102 in the first year on $10,000 under the SEC example. Past results don't predict the future, and any plan should look at the whole portfolio, not one fund.

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