Fund Evaluator:

Direxion Mthly Small Cap Bull 1.75X Overview

Direxion Mthly Small Cap Bull 1.75X (DXRLX) is a passively managed Miscellaneous Trading--Leveraged Equity fund. Direxion Funds launched the fund in 1999.

The investment seeks monthly investment results, before fees and expenses, of 175% of the calendar month performance of the Russell 2000® Index. The fund invests at least 80% of its net assets (plus borrowing for investment purposes) in securities of the index, exchange-traded funds that track the index and other financial instruments that provide monthly leveraged exposure to the index or to ETFs that track the index. The index measures the performance of approximately 2,000 small-capitalization companies in the Russell 3000® Index, based on a combination of their market capitalization and current index membership. The fund is non-diversified.

About Direxion Mthly Small Cap Bull 1.75X (DXRLX)

There are 2 members of the management team with an average tenure of 20.68 years: Tony Ng (2006), Paul Brigandi (2004). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Russell 2000 TR USD index with a weighting of 175%. Direxion Mthly Small Cap Bull 1.75X has 7 securities in its portfolio. The top 10 holdings constitute 182.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Direxion Mthly Small Cap Bull 1.75X is part of the Other global asset class and is within the Miscellaneous fund group. Direxion Mthly Small Cap Bull 1.75X has 3.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 164.7%. There is 3.6% 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 Mthly Small Cap Bull 1.75X has -68.3% of the portfolio in cash.

Assets Under Management

The fund has $9 million in total assets, which is below the $74 million average for the Trading--Leveraged Equity 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.

DXRLX 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 Mthly Small Cap Bull 1.75X expense ratio is high compared to funds in the Trading--Leveraged Equity category. Direxion Mthly Small Cap Bull 1.75X has an expense ratio of 1.60%, which is 22% lower than its category average, making the fund expense ratio grade a B. 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 Mthly Small Cap Bull 1.75X has a portfolio turnover rate of 19%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 393% for the Trading--Leveraged Equity category.

Recently, in the month of August 2026, Direxion Mthly Small Cap Bull 1.75X returned 1.3%, which earned it a grade of D, as the Trading--Leveraged Equity category had an average return of 4.0%. 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 funds in that category.

Direxion Mthly Small Cap Bull 1.75X has a trailing yield of 1.59%, which is above the 1.02% category average. The fund normally distributes its income annually 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 Mthly Small Cap Bull 1.75X Grades

Year to date, the fund has returned 31.2%, 9.4 percentage points better than the category, which translates into a grade of B. The fund has returned 41.2% over the past year (grade of B), 22.1% over the past three years (grade of D) and 2.6% per year over the past five years (grade of D) and 11.2% per year over the past 10 years (grade of C).

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