At a glance
TSLS charges 0.95% a year. It has $80.8M in assets; it paid 3.19% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −2.1% with distributions reinvested (S&P 500: +11.5%); over three years it returned −38.2% a year.
The short version
Direxion Daily TSLA Bear 1X Shares (TSLS) uses swap agreements to deliver the opposite of Tesla stock's return, one trading day at a time. When Tesla falls on a given day, the fund aims to rise by about the same percentage, before fees. Because the bet resets daily, results over weeks or months can drift far from Tesla's inverse. It charges 0.95% a year and lost about 60%, 56% and 35% in 2023, 2024 and 2025.
Price history
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TSLS -2.1% 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 | |
|---|---|---|---|---|---|---|
| TSLS official prospectus, to Dec 31, 2025 | — | -34.80% | — | — | — | -34.57% |
| TSLS price data to Oct 27, 2026 | -0.5% | -2.1% | -38.2% | — | — | -29.2% |
- Over the year to Oct 27, 2026, TSLS returned -2.1%.
- Its worst full calendar year was 2023 (-60.1%); its best was 2025 (-35.0%).
- The deepest fall in its price history was 90.7% (Dec 27, 2022 to Dec 16, 2025), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -0.5% | — |
| 2025 | -35.0% | -34.80% |
| 2024 | -55.7% | -55.72% |
| 2023 | -60.1% | -60.15% |
| 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) | $1.0800 | |
| 2025 | $2.2000 | -64.5% |
| 2024 | $6.2000 | -27.1% |
| 2023 | $8.5000 |
What's inside
As of Jul 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (104.55% of net assets), with its inverse exposure coming from 5 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 withdrew a net $6.0M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -13.01%, +1.55%, +30.60%.
How it works
TSLS does not track an index. It is built around a single stock, Tesla, Inc. The fund invests at least 80% of its net assets in financial instruments, mainly swap agreements, that together give it -100% daily exposure to Tesla. A swap is a contract with a bank: the bank pays the fund when Tesla falls, and the fund pays the bank when Tesla rises. As of July 31, 2026, the fund's filings listed five Tesla swaps. Cash and similar holdings, such as money market funds, short-term U.S. government debt and repurchase agreements, equaled about 105% of net assets.
The exposure resets every day. At each market close, the adviser, Rafferty Asset Management, rebalances. If Tesla fell, the fund's assets grew, so it adds to its short position. If Tesla rose, it cuts the position. Each day's return then compounds on the last. Over longer periods, returns will very likely differ from -100% of Tesla's move. The prospectus warns that the fund loses money if Tesla ends flat over time. In choppy markets, it can even lose while Tesla declines.
The fund is non-diversified and concentrated in one automaker. It relies on a limited number of swap counterparties. It creates and redeems shares mainly for cash, so it is not expected to be tax efficient. Its board can change the objective without a shareholder vote.
What it really costs
- TSLS charges 0.95% 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 $97 in the first year and $1,166 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| TSLS | $97 | $303 | $525 | $1,166 |
Structure and tax notes
- Resets its inverse exposure every day. Over periods longer than a day, compounding means returns can differ sharply from -1× the index — usually worse in choppy markets. Built for short-term trading, not buy-and-hold.
In a retirement portfolio
The prospectus says the fund seeks its target return for a single trading day only, and daily compounding has steadily eroded its value over longer periods.
TSLS launched on August 9, 2022, so it has no record from the 2008 or 2020 crashes. It also missed the start of the 2022 bear market. Its record since then is harsh. According to the prospectus, it lost 60.15% in 2023, its worst year, then 55.72% in 2024 and 34.8% in 2025. Its deepest drop was 90.7%, from December 27, 2022 to December 16, 2025, and it had not recovered as of October 27, 2026. Anyone who had to sell shares or raise cash during that stretch would have locked in large losses.
The fund paid a trailing 12-month yield of 3.19% as of October 27, 2026, in quarterly payouts. Those payouts are small next to its price swings. Costs are 0.95% a year, or $97 in the first year on $10,000 under the SEC's standard example. 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 Tesla shares without borrowing stock or opening a margin account.
- Holders of a large Tesla stake seeking a brief hedge, who can check and adjust the position every trading day.
- Traders who understand swap-based funds and accept a 0.95% expense ratio and volatility near 46% over the year to October 27, 2026.
Look elsewhere if
- Buy-and-hold investors: the fund fell 90.7% from December 2022 to December 2025 and hadn't recovered by October 27, 2026.
- Income seekers: the 3.19% trailing yield, paid quarterly, is small next to swings like the 46.5% loss in the first quarter of 2023.
- Anyone wanting diversification: the fund's results depend on one company, Tesla, through swaps with a limited number of counterparties.
Close alternatives
Matched by leveraged/inverse funds on the same index (the index could not be identified from the name).
No close alternatives found.
Questions investors ask
Is TSLS a good long-term investment?
It isn't designed for that. The prospectus says the fund seeks its target return for one trading day only. Over longer periods, its results have been poor. According to the prospectus, the fund lost 60.15% in 2023, 55.72% in 2024 and 34.8% in 2025. Its average annual return since inception was -34.57% as of December 31, 2025. It also charges 0.95% a year, or $1,166 over 10 years on $10,000 under the SEC's standard example.
How does TSLS make money when Tesla stock falls?
It uses swap agreements with major global financial institutions. Under these contracts, the bank pays the fund when Tesla's price falls, and the fund pays the bank when Tesla rises. The fund sizes these swaps to equal -100% of its net assets. It rebalances at every market close to keep that level. Most of its remaining assets sit in cash-like holdings such as money market funds and short-term U.S. government debt.
Can TSLS lose money even if Tesla goes down?
Yes. The fund resets its exposure every day, so each day's return compounds on the last. When Tesla swings up and down sharply, those daily resets can eat into value. The prospectus warns that the fund will lose money if Tesla ends flat over time. In volatile markets, it can lose money even while Tesla declines over a period longer than one day. Its three-year volatility was 58.8% as of October 27, 2026.
Does TSLS pay dividends?
Yes, the fund makes quarterly distributions. Its trailing 12-month yield was 3.19% as of October 27, 2026, or about $1.58 per share. These payouts come from a fund whose assets are mostly cash-like holdings, not Tesla shares. The income is small compared with the fund's price swings. For example, it fell 46.5% in the first quarter of 2023 and gained 40.25% in the first quarter of 2025.
What's the difference between TSLS and shorting Tesla stock?
Both profit when Tesla falls, but they work differently. Shorting means borrowing Tesla shares and selling them, which requires a margin account. A short seller's possible losses have no limit if the stock keeps rising. With TSLS, losses are capped at the amount invested. However, TSLS resets daily, so its return over weeks or months can drift far from Tesla's inverse. It also charges a 0.95% expense ratio and is not expected to be tax efficient.