At a glance
TZA charges 0.99% a year, above the 0.95% average of the 5 funds most like it (the most expensive of 3). It has $233.3M in assets, the largest of that group; it paid 4.03% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −34.5% with distributions reinvested (S&P 500: +11.5%), 5th of those 6 funds; over three years it returned −49.4% a year. At its worst it fell 48.2% in the 2022 bear market (S&P 500: 24.5%), and is still below its earlier high.
The short version
Direxion Daily Small Cap Bear 3X Shares (TZA) uses swaps and futures to try to deliver three times the opposite of the Russell 2000 small-cap index's return, for one day at a time. Because it resets daily, holding it longer can produce results far from -3x. It was the largest fund in its peer group, with $233 million in net assets as of July 31, 2026. Its 0.99% expense ratio is above the 0.95% peer average.
Price history
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TZA -34.5% 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 | |
|---|---|---|---|---|---|---|
| TZA official prospectus, to Dec 31, 2025 | — | -40.22% | — | -31.35% | -41.38% | — |
| TZA price data to Oct 27, 2026 | -36.3% | -34.5% | -49.4% | -28.5% | — | -42.6% |
- Over the year to Oct 27, 2026, TZA returned -34.5%, 5th of 6 among similar funds.
- Its 5-year annualized return was -28.5%.
- Its worst full calendar year was 2021 (-48.8%); its best was 2022 (+30.2%).
- The deepest fall in its price history was 97.9% (Jun 11, 2020 to Aug 14, 2026), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -36.3% | — |
| 2025 | -40.3% | -40.22% |
| 2024 | -32.2% | -32.24% |
| 2023 | -41.1% | -41.00% |
| 2022 | +30.2% | +30.17% |
| 2021 | -48.8% | -51.00% |
| 2020 | — | -80.34% |
| 2019 | — | -53.27% |
| 2018 | — | +24.80% |
| 2017 | — | -38.35% |
| 2016 | — | -55.54% |
| 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 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 66.9% over that stretch · deepest drop along the way 48.2%, not recovered by the end of the data |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.5700 | |
| 2025 | $3.8000 | -45.7% |
| 2024 | $7.0000 | -36.4% |
| 2023 | $11.0000 |
What's inside
As of Jul 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (109.7% of net assets), with its inverse exposure coming from 7 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 $3.0M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -12.58%, -11.37%, +10.04%.
How it works
TZA follows the Russell 2000, an index of about 2,000 small US companies drawn from the broader Russell 3000. The index is rebuilt once a year and adds newly listed companies each quarter. As of December 31, 2025, it held 1,958 stocks, weighted toward healthcare, financials and industrials. TZA aims to deliver 300% of the opposite of the index's return over a single trading day, before fees.
The fund doesn't short stocks one by one. Instead it mostly uses swaps and futures. A swap is a contract with a bank or other counterparty that pays the fund when the index falls and charges it when the index rises. As of July 31, 2026, its N-PORT filing listed seven derivative positions, mainly Russell 2000 swaps. It also held cash and similar assets equal to 109.7% of net assets, kept in money market funds, bank deposits and short-term government debt.
At each day's close, Rafferty Asset Management resets the fund's exposure. If the index fell, the fund's assets grew, so the short bet gets bigger. If the index rose, the bet gets smaller. Because returns compound daily, results over weeks or months will very likely differ from -3x the index. The fund can even lose money over a period when the index ends lower. It also depends on a limited number of swap counterparties.
What it really costs
- TZA charges 0.99% 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.
- 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 |
|---|---|---|---|---|
| TZA | $101 | $315 | $547 | $1,213 |
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
Its prospectus targets returns for a single trading day only, and holding it longer has led to steep, lasting losses.
TZA can jump when small caps slide. It gained 66.9% while the broad market fell from January 3 to October 12, 2022. Even during that slump, though, it dropped 48.2% between June 16 and August 15, 2022. In 2020 it lost 80.34%, its worst calendar year from 2016 to 2025, and its worst quarter was a 64.31% loss ending June 30, 2020. Its price fell 97.9% from June 11, 2020, to August 14, 2026, and had not recovered as of October 27, 2026. The record shown here does not cover the 2008 crisis. Anyone selling shares to fund spending would be locking in losses this deep. The trailing 12-month yield was 4.03% as of October 27, 2026, paid quarterly, and the expense ratio is 0.99%. 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, three-times bet against the Russell 2000 and who check their positions every day.
- Experienced traders hedging small-cap stock holdings for a day or a few days who understand daily resets and compounding.
- Traders who prefer the largest fund in its group: $233 million in net assets as of July 31, 2026, versus about $83 million for SRTY.
Look elsewhere if
- Buy-and-hold and retirement investors: TZA returned an average of -41.38% a year over the 10 years through December 31, 2025.
- Income seekers: the 4.03% trailing yield is small next to typical losses, such as the fund's 40.22% decline in 2025.
- Investors wanting milder inverse exposure: RWM targets -1x the Russell 2000, charges 0.95% and lost 8.9% over one year to October 27, 2026.
Close alternatives
Matched by leveraged/inverse funds on the same index (russell 2000), same direction.
| Fund | Exposure | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| TZA this fund | -3× | 0.99% | $233.3M | -34.5% | -49.4% |
| SRTY ProShares UltraPro Short Russell2000 | -3× | — | $83.0M | -34.6% | -50.0% |
| TWM ProShares UltraShort Russell2000 | -2× | — | $56.7M | -21.6% | -33.3% |
| SDD ProShares UltraShort SmallCap600 | -2× | — | $2.5M | -25.0% | -29.3% |
| RWM ProShares Short Russell2000 | -1× | 0.95% | $192.4M | -8.9% | -14.9% |
| SBB ProShares Short SmallCap600 | -1× | 0.95% | $4.9M | +79.2% | +13.1% |
Questions investors ask
Is TZA a good long-term investment?
TZA is built for single-day trades, not long-term holding. Its prospectus says it does not aim for -3x the Russell 2000 over any period longer than one trading day. Over the 10 years through December 31, 2025, it returned an average of -41.38% a year. Its price fell 97.9% from June 11, 2020, to August 14, 2026. Small-company stocks have generally risen over time, so a leveraged bet against them has tended to lose value when held for long stretches.
Can TZA lose money when small caps go down?
Yes. TZA resets its exposure every day, so its return over a longer stretch is each day's return compounded together, not -3x the index's total move. In choppy markets, a drop followed by a rebound can leave the fund lower than a simple -3x calculation would suggest. The prospectus says the fund will lose money if the index is flat over time. It may even lose money over a period when the Russell 2000 ends lower.
What's the difference between TZA and SRTY?
Very little in strategy. Both aim for three times the opposite of the Russell 2000's daily return, and their results have been close. As of October 27, 2026, TZA returned -34.5% over one year and -49.4% a year over three years. ProShares UltraPro Short Russell2000 (SRTY) returned -34.6% and -50%. The main difference is size: TZA had $233 million in net assets as of July 31, 2026, versus about $83 million for SRTY. TZA's expense ratio is 0.99%.
Does TZA pay dividends?
Yes, TZA pays distributions quarterly. Its trailing 12-month payout was $1.87 per share, a 4.03% yield as of October 27, 2026. The fund holds swaps, not stocks, so this income isn't stock dividends. Funds like this generally pass along interest earned on the cash, money market funds and short-term government debt they hold. The payout has been small next to the fund's price losses, such as its 40.22% decline in 2025.
What is TZA's expense ratio?
TZA's expense ratio is 0.99% a year, which includes a 0.75% management fee, according to its prospectus filed February 26, 2026. In the SEC's standard example, $10,000 earning 5% a year would cost about $101 over one year, $315 over three, $547 over five and $1,213 over 10. That is higher than the 0.95% charged by ProShares Short Russell2000 (RWM), which targets -1x instead of -3x. TZA also creates and redeems shares mainly for cash, so it isn't expected to be tax efficient.