Direxion Daily Technology Bull 3X Shares

Direxion Daily Technology Bull 3X Shares (TECL) aims to return three times the daily move of the Technology Select Sector Index, which holds the tech stocks in the S&P 500. It gets there with swaps (contracts that pay the index return), futures and stocks. Its leverage resets every day, so returns over months or years can differ sharply from triple the index. It is built for short-term traders, and it costs 0.87% a year.

• Over the year to Oct 27, 2026, TECL returned +50.6%, 3rd of 4 among similar funds.
• Its 5-year annualized return was +26.8% and its 10-year +47.2%.
• In the 2020 COVID crash it fell 75.1% and regained its old high 5.1 months after the low.
• Its worst full calendar year was 2022 (-74.3%); its best was 2023 (+203.2%).
• The deepest fall in its price history was 78% (Dec 27, 2021 to Oct 12, 2022), recovered by Jun 11, 2024.

As of Jul 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (32.48% of net assets), with its exposure coming from 8 swap and futures positions rather than from owning the stocks outright.

• Over the three months to Jul 31, 2026, investors withdrew a net $617.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +67.83%, -5.80%, -24.97%.

The fund follows an index from S&P Dow Jones Indices. It is one of eleven Select Sector Indexes. Every member must belong to the S&P 500 and come from tech industries such as software, semiconductors, hardware and IT services. The index had 70 members as of December 31, 2025. It weights companies by market value, but it trims very large single positions to meet tax rules, and it rebalances every quarter. As of July 31, 2026, the largest holdings were NVIDIA (9.5%), Apple (8.9%) and Microsoft (6.8%).

As of July 31, 2026, about 68.5% of net assets sat in stocks. Most of the extra exposure came from swap agreements: contracts in which a bank pays the fund the index return. If one of those banks fails to pay, the fund loses money. Cash and similar assets made up about 32.5%. At each day's close, Rafferty Asset Management adjusts exposure back to 3X. It adds exposure after an up day and cuts it after a down day. That is why portfolio turnover ran at 94%.

Because each day's return compounds on the last, results over longer periods will very likely differ from three times the index. The prospectus warns that the fund loses money if the index ends flat. It can even lose money while the index rises, and holders could lose everything they put in. The fund is also non-diversified, meaning a few companies can make up a large share of it.

• TECL charges 0.87% a year.
• Of that, 0.75% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.07% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $89 in the first year and $1,148 over 10 years (assuming a 5% annual return).

Its 3X exposure resets daily and is not designed for holding longer than one trading day, and it has twice lost more than 75% of its value.

TECL's price history starts in December 2008, so it misses most of the 2008 crisis. In the 2020 COVID crash it fell 75.1% between February 19 and March 23, 2020. It was back at its old peak by August 24, 2020. In the 2022 bear market it fell 77.5%, and it took until June 11, 2024, about 20 months after the low, to recover. Its worst calendar year was 2022, at -74.3%. Anyone who had to pull cash out in a year like that would have locked in very deep losses.

As of October 27, 2026, its trailing 12-month yield was 4.16%, paid quarterly, but income is not what it is built for. It costs 0.87% a year, or $89 in the first year on $10,000 under the SEC's standard example. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

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