Share-split context: A reverse split was recorded on Mar 5, 2026 with coefficient 0.1. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

Understanding the HIBS ETF

What this ETF is trying to do

HIBS, the Direxion Daily S&P 500 High Beta Bear 3X Shares, is a specialized type of fund known as a leveraged and inverse ETF. This means it is designed to move in the opposite direction of certain high-volatility stocks within the S&P 500. It also aims to multiply that movement by three times. Because it is "inverse," if those specific stocks go up, this ETF is designed to go down.

What the numbers show

As of October 7, 2026, the current price of HIBS is $15.73. The historical data shows significant share-price declines over several timeframes:

• Year-to-date (YTD) price return: approximately -68.79%

• One-year price return: approximately -74.67%

• Three-year price return: approximately -96.72%

When looking at total returns (which include the effect of distributions), the numbers are also very low: the one-year total return was about -73.61%, and the three-year total return was about -96.27%. The five-year total return was approximately -98.23%.

It is also important to note that this ETF has a history of reverse splits. In a reverse split, multiple old shares are combined into fewer new shares. This causes the quoted per-share price to rise mechanically, but this increase does not restore any lost investment value.

Income and distribution explanation

HIBS has a distribution yield of approximately 5.33%. Over the last year, it made four distributions, which means it usually pays out on a quarterly basis. The trailing distributions were about $0.84 per share.

For new investors, it is important to remember that a high distribution yield does not mean you have earned that percentage as a total return. A fund can pay out cash even while its share price is falling significantly.

NAV erosion explanation

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, the data does show significant price-based evidence of trouble. HIBS has a "severe erosion-risk flag" because its price trend and erosion score triggered a warning. The fund has an erosion-risk score of 10, which is labeled as "Severe price erosion."

Pros

• The ETF provides a distribution yield of approximately 5.33%.

• It offers a specific strategy for those looking for leveraged, inverse exposure to high-beta S&P 500 stocks.

Cons

• There has been a very large decline in share price over the last one, three, and five years.

• The fund carries a severe erosion-risk flag.

• The history of reverse splits can be a structural warning sign for investors.

Beginner takeaway

HIBS is a high-risk, leveraged inverse ETF. While it pays a distribution yield, the historical price returns show very large losses over the last few years. The "severe erosion-risk flag" indicates that the share price has experienced significant deterioration.