(TZA) Direxion Daily Small Cap - Overview
ETF Category: Trading--Inverse Equity | Exchange: NYSE ARCA (USA) | Market Cap: 249m USD | Total Return: -63.8% in 12m
Avg Turnover: 1.24B
Warnings
No concerns identified
Tailwinds
Idiosyncratic Leader
The Direxion Daily Small Cap Bear 3X Shares (TZA) is a leveraged inverse exchange-traded fund designed to provide 300% of the daily opposite performance of the Russell 2000 Index. To achieve this objective, the fund allocates at least 80% of its net assets into derivatives such as swap agreements, futures contracts, and short positions. The underlying index tracks approximately 2,000 small-capitalization companies within the broader Russell 3000 Index, focusing on firms with lower market valuations.
Inverse ETFs utilize a business model centered on financial engineering to profit from market declines rather than traditional asset appreciation. Small-cap stocks are typically more sensitive to domestic economic shifts and interest rate volatility compared to large-cap equities, often leading to higher beta and increased price swings. Because this fund rebalances daily to maintain its 3X leverage target, compounding effects can cause long-term returns to deviate significantly from the simple inverse of the index performance. For a deeper analysis of these risk factors, consider reviewing the detailed metrics available on ValueRay.
- Rising interest rates increase borrowing costs and default risks for small-cap firms
- Russell 2000 Index volatility accelerates daily leveraged returns through compounding effects
- Economic recession fears trigger broad sell-offs in high-beta small-cap equities
- Tightening credit conditions disproportionately impact capital-intensive companies within the Russell 2000
- Negative market sentiment drives short-term gains via triple inverse derivative exposure
As of June 07, 2026, the stock is trading at USD 4.70 with a total of 375,048,250 shares traded.
Over the past week, the price has changed by +8.55%,
over one month by -0.21%,
over three months by -27.43% and
over the past year by -63.79%.
Direxion Daily Small Cap has no consensus analysts rating.