ETF Evaluator: Direxion Daily 7-10 Yr Trs Bear 3X ETF () Follow This ETF

Direxion Daily 7-10 Yr Trs Bear 3X ETF Overview

Direxion Daily 7-10 Yr Trs Bear 3X ETF (TYO) is a passively managed Miscellaneous Trading--Inverse Debt exchange-traded fund (ETF). Direxion Funds launched the ETF in 2009.

The investment seeks daily investment results of 300% of the inverse (or opposite) of the daily performance of the ICE U.S. Treasury 7-10 Year Bond Index. The fund invests at least 80% of the fund’s net assets in financial instruments, that, in combination, provide 3X daily inverse (opposite) or short exposure to the index or to ETFs that track the index, consistent with the fund’s investment objective. The index is a market value weighted index that includes publicly issued U.S. Treasury securities that have a remaining maturity of greater than or equal to seven years and less than ten years. It is non-diversified.

About Direxion Daily 7-10 Yr Trs Bear 3X ETF (TYO)

There are 2 members of the management team with an average tenure of 14.07 years: Tony Ng (2015) and Paul Brigandi (2009). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and ICE U.S. Treasury 7-10 Year Bond TR USD index with a weighting of -300%. Direxion Daily 7-10 Yr Trs Bear 3X ETF has 10 securities in its portfolio. The top 10 holdings constitute 108.6% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Direxion Daily 7-10 Yr Trs Bear 3X ETF is part of the Other global asset class and is within the Miscellaneous ETF group. Direxion Daily 7-10 Yr Trs Bear 3X ETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 9.5% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Direxion Daily 7-10 Yr Trs Bear 3X ETF has 90.6% of the portfolio in cash.

Assets Under Management

The fund has $12 million in total assets, which is below the $91 million average for the Trading--Inverse Debt category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

TYO Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Direxion Daily 7-10 Yr Trs Bear 3X ETF expense ratio is high compared to funds in the Trading--Inverse Debt category. Direxion Daily 7-10 Yr Trs Bear 3X ETF has an expense ratio of 1.00%, which is 6% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Direxion Daily 7-10 Yr Trs Bear 3X ETF has a portfolio turnover rate of 0%, which indicates that it holds its assets around /years. By way of comparison, the average portfolio turnover is 0% for the Trading--Inverse Debt category.

Recently, in the month of July 2026, Direxion Daily 7-10 Yr Trs Bear 3X ETF returned 5.5%, which earned it a grade of C, as the Trading--Inverse Debt category had an average return of 13.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Direxion Daily 7-10 Yr Trs Bear 3X ETF has a trailing yield of 2.47%, which is below the 2.59% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Direxion Daily 7-10 Yr Trs Bear 3X ETF Grades

Year to date, the ETF has returned 12.9%, 7.9 percentage points better than the category, which translates into a grade of B. The fund has returned 9.5% over the past year (grade of B), 7.1% over the past three years (grade of C) and 15.5% per year over the past five years (grade of C) and 2.9% per year over the past 10 years (grade of C).

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