At a glance
TSMX charges 0.99% a year. It has $603.4M in assets; it paid 5.28% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +67.5% with distributions reinvested (S&P 500: +11.5%).
The short version
Direxion Daily TSM Bull 2X Shares (TSMX) aims to deliver twice the daily return of one stock: Taiwan Semiconductor Manufacturing (TSM), the largest dedicated chip foundry. It gets that exposure mainly through swap agreements. Its exposure resets every day, so over weeks or months its results can drift far from twice the stock's return. It charges 0.99% a year and is built for short-term trading, not buy-and-hold.
Price history
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TSMX +67.5% 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 | |
|---|---|---|---|---|---|---|
| TSMX official prospectus, to Dec 31, 2025 | — | +81.00% | — | — | — | +84.95% |
| TSMX price data to Oct 27, 2026 | +66.5% | +67.5% | — | — | — | +82.3% |
- Over the year to Oct 27, 2026, TSMX returned +67.5%.
- Its worst full calendar year was 2025 (+80.8%); its best was 2025 (+80.8%).
- The deepest fall in its price history was 63.8% (Jan 23, 2025 to Apr 8, 2025), recovered by Jul 17, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +66.5% | — |
| 2025 | +80.8% | +81.00% |
| 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) | $0.9200 | |
| 2025 | $3.9600 |
What's inside
As of Jul 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (84.01% of net assets), with its exposure coming from 5 swap and futures positions rather than from owning the stocks outright.
| Holding | Weight | |
|---|---|---|
| TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LTD | 13.51% |
By country
Taiwan 13.51%By asset type
Stocks 13.51%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $113.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +9.48%, +25.82%, -30.68%.
How it works
TSMX does not track an index. Its prospectus goal is 200% of the daily performance of TSM, the US-listed shares of Taiwan Semiconductor Manufacturing, before fees and expenses. The fund puts at least 80% of net assets into TSM shares and financial instruments that together provide that 2× exposure. Its main tool is the swap agreement. In a swap, a large bank pays the fund the return on TSM in exchange for a financing payment. As of July 31, 2026, TSM shares made up about 13.5% of net assets. Five swap positions had a net market value of about 5%, though the exposure they provide is far larger. About 84% sat in cash and short-term, high-quality holdings that back the swaps.
At each market close, the adviser, Rafferty Asset Management, rebalances the fund so its exposure equals 200% of net assets. After an up day it adds exposure. After a down day it cuts exposure. Because of this daily reset, returns over longer periods compound day by day and will very likely differ from twice TSM's return. In choppy markets the fund can lose money even if TSM ends flat.
The fund is non-diversified and concentrated in one company and one industry. It relies on a limited number of swap counterparties. The prospectus warns that an investor could lose all of the money invested.
What it really costs
- TSMX charges 0.99% 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 $101 in the first year and $1,213 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| TSMX | $101 | $315 | $547 | $1,213 |
Structure and tax notes
- Resets its exposure every day. Over periods longer than a day, compounding means returns can differ sharply from 2× the index — usually worse in choppy markets. Built for short-term trading, not buy-and-hold.
In a retirement portfolio
Its exposure to a single stock resets daily at 2×, a design built for short-term trading rather than buy-and-hold.
TSMX launched on October 3, 2024, so it has no record through the 2008, 2020 or 2022 downturns. Its short history is already harsh. It fell 63.8% from January 23 to April 8, 2025, then took about 3.3 months to recover, by July 17, 2025. Its worst quarter, ended March 31, 2025, lost 35.42%. Its only full calendar year, 2025, gained 81%. A retiree forced to sell near a low like April 2025 would lock in deep losses.
The trailing yield was 5.28%, paid quarterly, as of October 27, 2026, but payouts are not a stated goal and may swing widely. The SEC example puts costs at $101 in year one on $10,000. 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 magnified one-day bets on Taiwan Semiconductor Manufacturing and can monitor positions every trading day.
- Traders who understand swaps, daily resets and compounding, and accept the prospectus warning that the entire investment could be lost.
- Short-term investors who can stomach swings like the 63.8% drop from January to April 2025 and 78.3% one-year volatility.
Look elsewhere if
- Retirees and buy-and-hold investors: daily resets mean multi-month returns can differ sharply from 2× TSM and can lag in choppy markets.
- Investors seeking diversification: the fund is tied to one Taiwan-based chipmaker in one industry, with no record before October 2024.
- Cost-conscious or income-focused investors: 0.99% a year totals $1,213 over 10 years in the SEC example, and quarterly payouts may vary.
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 TSMX good for long-term investing?
TSMX is not designed for long-term holding. Its prospectus says it seeks 200% of TSM's return for a single trading day only. Because its exposure resets daily, returns over longer periods compound and will very likely differ from twice TSM's return. In choppy markets it can lose money even if TSM ends flat. The fund fell 63.8% between January 23 and April 8, 2025, before recovering by July 17, 2025.
What's the difference between TSMX and buying TSM stock?
Owning TSM shares gives 1× exposure, with no fund expense ratio and no daily reset. TSMX aims for twice TSM's daily move, mostly through swaps, and charges 0.99% a year. Over a single day it should move about twice as much as TSM. Over longer stretches, compounding can make results better or worse than 2×. TSMX also adds counterparty risk, because it depends on banks honoring their swap contracts.
Does TSMX pay dividends?
Yes. TSMX pays distributions quarterly. Its trailing 12-month yield was 5.28%, or $4.29 per share, as of October 27, 2026. Income is not part of the fund's stated objective, which focuses only on 2× daily TSM performance. Payouts from a leveraged fund can change sharply from year to year. The yield also says nothing about the large price swings the fund carries, including a 63.8% drop in early 2025.
How much does TSMX cost?
TSMX's expense ratio is 0.99% a year, including a 0.75% management fee, according to its prospectus filed February 26, 2026. The SEC's standard example assumes $10,000 invested, a 5% yearly return, and shares sold at the end of each period. On that basis, costs come to about $101 after one year, $315 after three, $547 after five and $1,213 after 10. Trading costs such as bid-ask spreads come on top of that.
How has TSMX performed since launch?
TSMX returned 81% in 2025, its first full calendar year. From its October 3, 2024 launch through December 31, 2025, it averaged 84.95% a year, according to its prospectus. Its strongest quarter, ended June 30, 2025, gained 72.6%. Its weakest, ended March 31, 2025, lost 35.42%. Based on prices, it was up 67.5% over the year through October 27, 2026. A record this short and this volatile says little about future results.