EDZ vs TZA

EDZDDirexion Daily MSCI Emerging Markets Bear 3X ETF

TZABDirexion Daily Small Cap Bear 3X ETF

In short

EDZ The bear 3X shelf is mostly US indexes. EDZ is the one pointed overseas: a single ticker seeking -300% of the MSCI Emerging Markets Index for one day, on the market since 2008. Built for short-term trading, with the daily reset that implies.

TZA Born in the wreckage of 2008, TZA aims to move three times the inverse of the Russell 2000's daily swing. A heavily traded way to press a bearish small-cap view, with a daily reset that makes it a tool for days, not quarters.

Stated mandate

EDZ The fund seeks daily investment results, before fees and expenses, equal to 300% of the inverse performance of the MSCI Emerging Markets Index.

TZA The Fund seeks daily inverse leveraged investment results equal to negative three times the daily performance of the Russell 2000 Index. Its leverage makes it potentially riskier than nonleveraged alternatives.

Why people hold it

• EDZ The only broad emerging markets fund in Direxion's bear 3X lineup: one ticker for -300% daily exposure to large and mid cap stocks across two dozen EM countries, while SQQQ, SDOW, SRTY and TZA all aim at US indexes.direxion.commsci.com
• Priced near the category median: 1.05% net of a waiver through September 1, 2027, against a 1.47% gross ratio. SQQQ (0.94%) and TZA (0.99%) sit lower, neither leaning on a waiver.
• Launched December 2008, one of the longest-running inverse emerging markets ETFs, and Direxion posts the holdings daily.direxion.com

• TZA Fee of 0.99% comes in under the typical leveraged bear fund, and under every other Russell 2000 short ETF on the shelf (RWM, TWM, SRTY).
• Very actively traded, which usually means tight spreads and easy exits when a short-term view changes fast.
• Running since 2008, a long life for a leveraged fund, and it has stayed close to its stated daily target.
• Sits in the upper half of a crowded leveraged bear peer group on our overall read.

Worth knowing

• EDZ Leverage resets daily. Direxion states the fund should not be expected to deliver -300% of the index's cumulative return over periods longer than a day; compounding can push multi-day results off that mark.direxion.com
• The 1.05% net rate depends on a waiver running to September 1, 2027. If it lapses, cost steps toward the 1.47% gross figure.
• One of the smaller, less heavily traded names in the bear 3X group, so order size and spreads matter more here than with the big US-index shorts.

• TZA The -3x target resets every day. Hold longer and compounding pulls results away from three times the index move over that stretch, up or down.
• Triple leverage cuts both ways: a 1% up day in the Russell 2000 is roughly a 3% down day here, before costs.
• Direxion's own filing flags the fund as potentially riskier than nonleveraged alternatives and built for daily monitoring.

Full EDZ profile⁠

Full TZA profile⁠