Direxion Daily 7-10 Year Treasury Bear 3x Shares

Direxion Daily 7-10 Year Treasury Bear 3x Shares (TYO) uses swap contracts to seek three times the opposite of each day's return on an index of US Treasury bonds maturing in seven to ten years. It may suit short-term traders betting that interest rates will rise, since rising rates push bond prices down. Its exposure resets daily, so returns over longer periods can stray far from -3x, and it charges 1.00% a year.

• Over the year to Oct 27, 2026, TYO returned +25.0%, 3rd of 7 among similar funds.
• Its 5-year annualized return was +15.7%.
• Its worst full calendar year was 2025 (-7.5%); its best was 2022 (+58.8%).
• The deepest fall in its price history was 24.4% (Oct 19, 2023 to Sep 16, 2024), recovered by Sep 9, 2026.

As of Jul 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (97.82% of net assets), with its inverse exposure coming from 3 swap and futures positions rather than from owning the stocks outright.

• Over the three months to Jul 31, 2026, investors added a net $723K (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +1.18%, +0.32%, +5.52%.

TYO bets against an index of US Treasury bonds maturing in seven to just under ten years. Each bond needs at least $300 million outstanding, and inflation-protected bonds are excluded. Bonds are weighted by market value, so larger issues count more, and the index is rebalanced monthly. The index had 17 bonds as of December 31, 2025.

The fund doesn't own the bonds. It puts at least 80% of net assets into swaps and other instruments that, combined, aim for three times the opposite of the index's daily return. A swap is a contract with a bank to trade returns; if the bank fails to pay, the fund can lose money. As of July 31, 2026, its exposure came from three swaps on the iShares 7-10 Year Treasury Bond ETF, and about 98% of its $12.5 million in assets was cash and short-term holdings.

At each market close, its adviser, Rafferty Asset Management, resets exposure to -3x: raising it after the index falls and trimming it after it rises. Because daily returns compound, results over longer periods will likely differ from -3x. The fund loses money if the index ends flat over time, and can lose money even while the index falls. It creates and redeems shares for cash, so it is not expected to be tax-efficient.

• TYO charges 1% a year, versus an average of 0.95% for the similar funds below (3rd of 3, cheapest first).
• Of that, 0.75% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.15% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $102 in the first year and $1,384 over 10 years (assuming a 5% annual return).

Its -3x exposure resets daily and compounds, so results over years can stray far from the index, and it lost money in every calendar year from 2016 through 2020.

TYO gains when Treasury prices fall. It rose 58.7% during the 2022 bear market, from January 3 to October 12, 2022. But when fear drives investors into Treasuries, it falls: it lost 26.78% in the quarter ended March 31, 2020, and 27.5% for 2020, its worst year of 2016–2025. Its deepest drop since June 2020, 24.4% from October 2023 to September 2024, took nearly two years to recover. It launched after the 2008 crisis.

Someone drawing cash in a stock crash could find it down when money is needed. It pays quarterly and yielded 7.63% over the 12 months to October 27, 2026, but such payouts can swing widely. It costs 1.00% a year, or $1,384 over ten years on $10,000 in 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 (treasury), same direction.