At a glance
TECS charges 1.01% a year. It has $73.4M in assets, the largest of that group; it paid 7.49% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −63.7% with distributions reinvested (S&P 500: +11.5%), 3rd of those 4 funds; over three years it returned −66.7% a year. At its worst it fell 32.0% in the 2020 crash (S&P 500: 33.7%) and 49.4% in the 2022 bear market (S&P 500: 24.5%).
The short version
Direxion Daily Technology Bear 3X Shares (TECS) mainly uses swaps to aim for three times the opposite of one day's move in the Technology Select Sector Index, which tracks about 70 S&P 500 tech companies. It rises when tech stocks fall and falls when they rise. Its leverage resets every day, so holding it for long periods has gone very badly: it lost an average of 59.13% a year over the 10 years to December 31, 2025.
Price history
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TECS -63.7% 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 | |
|---|---|---|---|---|---|---|
| TECS official prospectus, to Dec 31, 2025 | — | -62.40% | — | -53.14% | -59.13% | — |
| TECS price data to Oct 27, 2026 | -66.8% | -63.7% | -66.7% | -55.9% | -61.6% | -57.9% |
- Over the year to Oct 27, 2026, TECS returned -63.7%, 3rd of 4 among similar funds.
- Its 5-year annualized return was -55.9% and its 10-year -61.6%.
- In the 2020 COVID crash, while stocks fell, it gained 90.6%.
- Its worst full calendar year was 2020 (-87.8%); its best was 2022 (+45.0%).
- The deepest fall in its price history was 100% (Mar 9, 2009 to Oct 6, 2026), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -66.8% | — |
| 2025 | -62.4% | -62.40% |
| 2024 | -49.6% | -49.73% |
| 2023 | -74.5% | -74.44% |
| 2022 | +45.0% | +44.95% |
| 2021 | -67.9% | -67.74% |
| 2020 | -87.8% | -87.82% |
| 2019 | -73.8% | -73.81% |
| 2018 | -18.5% | -19.29% |
| 2017 | -60.8% | -60.70% |
| 2016 | -43.4% | -43.36% |
| 2015 | -31.1% | — |
| 2014 | -46.1% | — |
| 2013 | -55.2% | — |
| 2012 | -42.6% | — |
| 2011 | -31.8% | — |
| 2010 | -45.3% | — |
| 2009 | -86.5% | — |
| 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 | Gained 90.6% over that stretch · deepest drop along the way 32%, not recovered by the end of the data |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 111.1% over that stretch · deepest drop along the way 49.4%, back to its old high 1.9 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.3000 | |
| 2025 | $10.1000 | -60.7% |
| 2024 | $25.7000 | -65.3% |
| 2023 | $74.0000 | -26.0% |
| 2020 | $100.0000 | -94.1% |
| 2019 | $1700.0000 | -59.5% |
| 2018 | $4200.0000 |
What's inside
As of Jul 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (109.58% of net assets), with its inverse exposure coming from 8 swap and futures positions rather than from owning the stocks outright.
| Holding | Weight |
|---|
By country
By asset type
What changed recently
- Over the three months to Jul 31, 2026, investors added a net $18.1M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -43.25%, -7.08%, +22.55%.
How it works
TECS bets against the Technology Select Sector Index from S&P Dow Jones Indices. The index holds the S&P 500 members in software, semiconductors, hardware, communications equipment, IT services and electronic instruments. It had 70 members as of December 31, 2025. They are weighted by company size, with caps on the biggest stocks to meet US tax rules, and the index rebalances every quarter. The fund doesn't hold these stocks. Instead it uses swaps (contracts in which a bank pays the fund the opposite of the index's return) and futures. As of July 31, 2026, it held eight swaps on the index, plus cash and short-term holdings worth about 110% of net assets.
At each market close, Rafferty Asset Management resets the fund's exposure back to -3 times the index. After a down day for tech, exposure goes up. After an up day, it is cut. This daily compounding means results over weeks or months can be far from -3 times the index. The prospectus warns that the fund will lose money if the index ends flat, and that it can lose money even while the index falls.
The fund also depends on a small number of swap counterparties paying what they owe. It creates and redeems shares mostly for cash, so it isn't expected to be tax efficient. Its board can change the objective without a shareholder vote.
What it really costs
- TECS charges 1.01% 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 $103 in the first year and $1,236 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| TECS | $103 | $322 | $558 | $1,236 |
Structure and tax notes
- Resets its inverse exposure every day. Over periods longer than a day, compounding means returns can differ sharply from -3× the index — usually worse in choppy markets. Built for short-term trading, not buy-and-hold.
In a retirement portfolio
The fund aims for a one-day result only, and its daily reset has wiped out almost all value for long-term holders.
TECS launched in December 2008, so it missed the 2008 crisis. In the 2020 COVID crash it gained 90.6% while the market fell, yet it dropped 32% in one day, March 12–13. It then ended 2020 down 87.82%, its worst year. In the 2022 bear market it gained 111.1%, despite a 49.4% fall that took about two months to recover. 2022 was its only positive calendar year from 2016 to 2025. Its deepest drop, from March 2009 to October 6, 2026, wiped out almost all its value and hasn't been recovered. It pays quarterly, with a 7.49% trailing yield as of October 27, 2026. That income is tiny next to the losses. Costs are 1.01% a year. Anyone forced to sell in a bad stretch could lock in heavy losses. Past results don't predict the future, 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 want a one-day bet against large US tech stocks and can check their position every trading day.
- Short-term hedgers protecting a tech-heavy stock position who plan to close the hedge within days, not months.
- Traders who want more leverage than ProShares UltraShort Technology (REW, -2x) and accept bigger swings both ways.
Look elsewhere if
- Buy-and-hold or retirement investors: the fund averaged -59.13% a year over the 10 years to December 31, 2025.
- Income seekers: the 7.49% trailing yield (as of October 27, 2026) is tiny next to losses like the -62.4% in 2025.
- Anyone who can't watch positions daily, can't stomach drops like the 32% one-day fall of March 2020, or minds 1.01% expenses.
Close alternatives
Matched by leveraged/inverse funds on the same index (technology), same direction.
Net assets from each fund's latest N-PORT or annual report where available. Returns through Oct 27, 2026.Questions investors ask
Can you hold TECS long term?
It isn't built for that. The prospectus says the fund seeks -3 times the index's return for a single trading day only. Over longer periods, daily compounding has been crushing. The fund averaged -59.13% a year over the 10 years to December 31, 2025. Based on price, it lost almost all its value over the 10 years through October 27, 2026. It had only one positive calendar year from 2016 to 2025: 2022, when it gained 44.95%.
What's the difference between TECS and REW?
Both aim for the opposite of the daily move in US technology stocks. TECS, from Direxion, targets -3 times. ProShares UltraShort Technology (REW) targets -2 times. The extra leverage cuts both ways. Over the year to October 27, 2026, TECS returned -63.7% and REW returned -45.5%. TECS is much larger, with $73.4 million in net assets as of July 31, 2026, compared with about $5.5 million for REW.
Does TECS pay dividends?
Yes, it pays quarterly. Over the 12 months to October 27, 2026, it paid $4.20 per share (adjusted for splits), a trailing yield of 7.49%. Part of the reason the yield looks high is that the share price has fallen so far. These payouts haven't come close to making up for price losses. The fund returned -62.4% in 2025 and -66.8% for 2026 through October 27.
Why does TECS lose money even when tech stocks go down?
The fund resets its leverage every day, so its returns compound one day at a time. When markets swing up and down, that compounding steadily eats into value. The prospectus warns that the fund will lose money if the index ends flat over time. It also says the fund can lose money even while the index falls over a period longer than a day. Its one-year volatility was 80.5% as of October 27, 2026.
How much does TECS cost?
TECS has an expense ratio of 1.01%, which includes a 0.75% management fee, according to its February 2026 prospectus. The SEC's standard example assumes $10,000 invested with a 5% yearly return. On that basis, costs would be about $103 after one year, $322 after three, $558 after five and $1,236 after ten. Trading and swap financing costs come on top. Cash-based creations also make the fund less tax efficient than most ETFs.