At a glance
TSMZ charges 1.01% a year. It has $3.1M in assets; it paid 4.3% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −38.5% with distributions reinvested (S&P 500: +11.5%).
The short version
Direxion Daily TSM Bear 1X Shares (TSMZ) uses swap contracts to aim for the opposite of the daily return of Taiwan Semiconductor Manufacturing Company (TSM), so it rises when TSM falls. It's designed for one-day bets against TSM, or hedges on it; because the target resets daily, longer-term returns can stray far from TSM's inverse. It charges 1.01% a year and had net assets of about $3.1 million as of July 31, 2026.
Price history
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TSMZ -38.5% 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 | |
|---|---|---|---|---|---|---|
| TSMZ official prospectus, to Dec 31, 2025 | — | -41.94% | — | — | — | -42.06% |
| TSMZ price data to Oct 27, 2026 | -37.0% | -38.5% | — | — | — | -42.0% |
- Over the year to Oct 27, 2026, TSMZ returned -38.5%.
- Its worst full calendar year was 2025 (-41.9%); its best was 2025 (-41.9%).
- The deepest fall in its price history was 75.1% (Apr 8, 2025 to Oct 5, 2026), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -37.0% | — |
| 2025 | -41.9% | -41.94% |
| 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) | $0.2100 | |
| 2025 | $0.5900 |
What's inside
As of Jul 31, 2026, the fund held 0 securities; the ten largest made up 0% of assets, and 106.44% sat in cash and money-market holdings.
| Holding | Weight |
|---|
By country
By asset type
What changed recently
- Over the three months to Jul 31, 2026, investors added a net $623K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -5.92%, -14.70%, +15.91%.
How it works
TSMZ tracks no index. It targets one stock, Taiwan Semiconductor Manufacturing Company (TSM), the largest dedicated foundry (contract chipmaker) in the semiconductor industry. The fund uses swaps: contracts with major financial institutions under which it earns the opposite of TSM's daily return on an amount equal to its net assets. As of July 31, 2026, it held no stock: about 106% of net assets sat in cash and cash-like holdings, and four TSM swaps were valued at about -5% combined (their running gain or loss, not the bet's size).
Exposure resets at each market close. If TSM falls, the fund's assets grow, so it enlarges its bet against TSM; if TSM rises, it shrinks the bet. Because each day's return compounds on the last, results over longer periods will very likely differ from -100% of TSM's return. The fund loses money if TSM ends flat over time and, in volatile stretches, can lose even while TSM declines.
The swaps depend on a few financial institutions on the other side paying what they owe. Shares are created and redeemed mainly for cash, so the fund is not expected to be tax efficient. Its board can change the objective without a shareholder vote, and holders could lose their entire investment.
What it really costs
- TSMZ charges 1.01% a year.
- Of that, 0.75% is the management fee; the rest covers other fund expenses.
- The fee includes a 0.46% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $103 in the first year and $1,718 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| TSMZ | $103 | $420 | $759 | $1,718 |
In a retirement portfolio
TSMZ seeks the inverse of TSM's return for a single trading day only, and it lost 41.94% in 2025, its only full calendar year.
TSMZ launched October 3, 2024, so it has no history from the 2008, 2020 or 2022 downturns. Its only full calendar year, 2025, brought a 41.94% loss, and it fell another 37.01% in 2026 through October 27. Its deepest drop, 75.1% from April 8, 2025, to October 5, 2026, remained unrecovered as of October 27, 2026. Cashing out after such a drop would lock in the loss. Its daily reset also makes it an unreliable long-term hedge for TSM holdings.
It paid $0.32 a share over the trailing 12 months, a 4.3% yield as of October 27, 2026, paid quarterly; that's small next to those losses. It costs 1.01% a year: $103 in the first year and $1,718 over 10 years on $10,000, in the SEC's standard example. Past results don't predict future ones, and planning means looking at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Active traders seeking a one-day bet against Taiwan Semiconductor Manufacturing Company (TSM) without shorting the stock directly, who can check the position daily.
- TSM shareholders wanting a brief hedge around a specific event, such as an earnings report, rather than a lasting offset to their position.
- Traders wanting inverse exposure without magnification: TSMZ targets -100% of TSM's daily move, not a multiple, and holders can't lose more than they put in.
Look elsewhere if
- Long-term or retirement investors: the target resets daily, and the fund fell 75.1% from April 8, 2025, to October 5, 2026.
- Income seekers: the 4.3% trailing yield as of October 27, 2026, was dwarfed by a 37.01% loss in 2026 through that date.
- Cost-conscious or tax-sensitive investors: it charges 1.01% a year and, per its prospectus, is not expected to be tax efficient.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
No close alternatives found.
Questions investors ask
Is TSMZ a leveraged ETF?
Not in the usual sense. TSMZ is a 1X inverse fund: it aims for -100% of the daily return of Taiwan Semiconductor Manufacturing Company (TSM), before fees, so it doesn't magnify TSM's moves. It does share a key trait with leveraged funds, though. Its exposure resets daily through swaps, so over weeks or months its return can stray well away from the simple opposite of TSM's, and the fund loses money if TSM ends flat over time.
Is TSMZ a good long-term investment?
It isn't designed to be one. The prospectus says TSMZ seeks its -100% target only for a single trading day, and compounding means results over longer periods will very likely differ from the inverse of TSM's return. Its only full calendar year, 2025, ended with a 41.94% loss. Its deepest drop, 75.1% from April 8, 2025, to October 5, 2026, remained unrecovered as of October 27, 2026. The prospectus also warns holders could lose their entire investment.
Does TSMZ pay dividends?
Yes, it pays distributions quarterly. TSMZ paid $0.32 a share over the trailing 12 months, a 4.3% yield as of October 27, 2026. The payouts don't come from owning TSM shares: as of July 31, 2026, the fund held no stock, with about 106% of net assets in cash and short-term instruments that can earn interest. The yield is small next to the fund's 37.01% loss in 2026 through October 27.
What is TSMZ's expense ratio?
TSMZ's expense ratio is 1.01% a year, according to its prospectus filed February 26, 2026. That includes a 0.75% management fee and reflects a 0.46% fee waiver. In the SEC's standard example, which assumes $10,000 invested, a 5% annual return and shares redeemed at the end of each period, costs total about $103 after one year, $420 after three, $759 after five and $1,718 after 10. The prospectus also notes brokerage and financing costs tied to its cash-based share creations.
What's the difference between TSMZ and shorting TSM stock?
The main differences are the loss limit, the daily reset and the cost. Shorting TSM directly means borrowing shares to profit from a decline, which requires a margin account and carries no ceiling on losses if the stock keeps rising. With TSMZ, the most a holder can lose is the amount invested. But it charges 1.01% a year, relies on financial institutions honoring its swap contracts, and resets its exposure daily, so results over longer periods can drift from TSM's simple inverse.