At a glance
WEBS charges 1.07% a year. It has $7.7M in assets; it paid 3.91% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −9.3% with distributions reinvested (S&P 500: +11.5%); over three years it returned −53.5% a year. At its worst it fell 58.8% in the 2022 bear market (S&P 500: 24.5%), and is still below its earlier high.
The short version
Direxion Daily Dow Jones Internet Bear 3X Shares (WEBS) uses swap contracts to aim for three times the opposite of the Dow Jones Internet Composite Index's return over a single day. That makes it a short-term tool for betting against internet stocks. Its exposure resets daily and it charges 1.07% a year. Its share price fell 88% over the five years through October 27, 2026.
Price history
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WEBS -9.3% 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 | |
|---|---|---|---|---|---|---|
| WEBS official prospectus, to Dec 31, 2025 | — | -40.65% | — | -39.30% | — | -53.23% |
| WEBS price data to Oct 27, 2026 | -23.4% | -9.3% | -53.5% | -34.7% | — | -52.5% |
- Over the year to Oct 27, 2026, WEBS returned -9.3%.
- Its 5-year annualized return was -34.7%.
- Its worst full calendar year was 2023 (-75.6%); its best was 2022 (+117.1%).
- The deepest fall in its price history was 99.4% (Apr 3, 2020 to Oct 9, 2026), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -23.4% | — |
| 2025 | -40.6% | -40.65% |
| 2024 | -56.6% | -56.59% |
| 2023 | -75.6% | -75.58% |
| 2022 | +117.1% | +117.16% |
| 2021 | -39.8% | -39.68% |
| 2020 | — | -87.20% |
| 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 Apr 1, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 159% over that stretch · deepest drop along the way 58.8%, not recovered by the end of the data |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.4200 | |
| 2025 | $0.7600 | -73.0% |
| 2024 | $2.8200 | -61.4% |
| 2023 | $7.3000 | +942.9% |
| 2022 | $0.7000 |
What's inside
As of Jul 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (115.03% of net assets), with its inverse exposure coming from 4 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 $923K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -19.62%, +19.70%, -11.58%.
How it works
WEBS is built on the Dow Jones Internet Composite Index from S&P Dow Jones Indices. To qualify, a company must earn at least 50% of its sales online and have an average market value of at least $100 million over three months. The index draws 40 stocks from internet commerce (online retail, search, social media) and internet services (cloud computing, enterprise software). Companies are ranked by float-adjusted market value, which counts only shares the public can trade. The index rebalances quarterly. As of December 31, 2025, it had 41 constituents, concentrated in information technology.
The fund owns none of these stocks. It seeks 300% of the inverse of the index's daily return, mainly through swaps. A swap is a contract with a financial firm (the counterparty) to exchange payments based on the index. As of July 31, 2026, the fund held four swaps on the index, worth a combined -4.1% of net assets, plus cash and short-term holdings worth about 115%.
At each market close, the adviser, Rafferty Asset Management, resets the fund's exposure. It adds to the short position after the index falls and trims it after the index rises. Because each day's return builds on the last, results over longer periods will very likely differ from -300% of the index's return. The prospectus warns that the fund will lose money if the index is flat over time. Shares are also created and redeemed mainly for cash, so the fund is not expected to be tax efficient.
What it really costs
- WEBS charges 1.07% a year.
- Of that, 0.75% is the management fee; the rest covers other fund expenses.
- The fee includes a 0.16% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $109 in the first year and $1,475 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| WEBS | $109 | $374 | $660 | $1,475 |
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
WEBS resets its triple inverse exposure every day, and its prospectus says it does not seek its target over any period longer than one trading day.
WEBS gained 117.16% in 2022. It rose 159% from the stock market's January 3 peak to its October 12 low. Yet it fell 58.8% between June 16 and August 15, 2022, and never regained that high. It lost 67.87% in the quarter ended June 30, 2020, just after the COVID-crash low, and it didn't exist in 2008. Its worst calendar year was 2020, down 87.2%. Its price fell 99.4% from April 3, 2020 to October 9, 2026, without recovering.
Anyone forced to cash out in a losing stretch would lock in steep losses. The fund pays quarterly, and payouts over the past year came to a 3.91% yield as of October 27, 2026. That is small next to these swings, and the 1.07% expense ratio is a steady drag. Past results don't predict the future, and a plan needs to look 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 the Dow Jones Internet Composite Index who can monitor and adjust the position every trading day.
- Investors hedging internet stocks they own against a short-term drop, who accept that compounding skews longer results away from -3X.
- Experienced traders comfortable with swap counterparty risk, 63.8% one-year volatility and the prospectus warning that they could lose their entire investment.
Look elsewhere if
- Retirees and long-term savers: the share price fell 88% over the five years through October 27, 2026, and 99.4% from its April 2020 peak.
- Income seekers: the 3.91% trailing yield, paid quarterly, is small next to a 23.4% price drop in 2026 through October 27.
- Taxable investors wanting typical ETF tax efficiency: because WEBS redeems shares mainly for cash, its prospectus says it isn't expected to be tax efficient.
Close alternatives
Matched by leveraged/inverse funds on the same index (dow), same direction.
No close alternatives found.
Questions investors ask
Can you hold WEBS long term?
It isn't built for that. The prospectus says WEBS seeks -300% of its index's return for a single trading day only. It also says the fund will lose money if the index is flat over time. Longer-term results have been steep losses. The average annual return was -53.23% from the November 7, 2019 launch through December 31, 2025. The share price fell 88% over the five years through October 27, 2026.
What index does WEBS track?
WEBS is linked to the Dow Jones Internet Composite Index from S&P Dow Jones Indices, but it moves opposite to it, at three times the daily change. The index is built from 40 companies that earn at least 50% of their sales online, split between internet commerce and internet services. It had 41 constituents as of December 31, 2025, concentrated in information technology. The fund owns none of these stocks and uses swaps and cash instead.
Does WEBS pay dividends?
Yes. WEBS pays distributions quarterly. Its trailing yield was 3.91% as of October 27, 2026, or about $0.59 per share, adjusted for share splits. Those payouts are small next to the fund's price swings. Its one-year volatility was 63.8%, and the price fell 23.4% in 2026 through October 27. The income does little to cushion losses when internet stocks rise.
What is the WEBS expense ratio?
WEBS has a 1.07% expense ratio, according to its prospectus filed February 26, 2026. That includes a 0.75% management fee, and the prospectus also lists a 0.16% fee waiver. The SEC's standard example assumes $10,000 invested, a 5% annual return and shares cashed out at the end of each period. On that basis, costs would total $109 after one year, $374 after three, $660 after five and $1,475 after ten.
Does WEBS go up when the stock market crashes?
It can, because it gains when the Dow Jones Internet Composite Index falls. It returned 117.16% in 2022, including 125.1% in the quarter ended June 30, 2022. But it hasn't been a dependable hedge. It fell 58.8% between June 16 and August 15, 2022, in the middle of that bear market, then lost 75.58% in 2023. It also lost 67.87% in the quarter ended June 30, 2020, just after the COVID-crash low.