Share-split context: This ETF has both forward- and reverse-split history. The most recent recorded event was on Dec 4, 2023 with coefficient 0.1. Current price-return figures are already split-adjusted. Forward splits receive no automatic performance penalty; reverse-split history remains a separate structural warning.

ETF Education Report: TMF

TMF (Direxion Daily 20+ Year Treasury Bull 3X Shares) is a leveraged ETF designed to provide three times the daily return of long-term U.S. Treasury bonds. It is a high-risk tool that uses leverage to amplify price movements.

What this ETF is trying to do

TMF seeks to multiply the daily performance of bonds with maturities of 20 years or more. Because it is "3X leveraged," if the underlying bonds go up by 1% in a day, TMF aims to go up by 3%. However, if the bonds go down by 1%, TMF aims to go down by 3%. This makes it very volatile.

What the numbers show

The supplied data shows a significant decline in share price over several timeframes:

• Year-to-Date (YTD): The price return is -32.40%.

• One Year: The price return is -37.32%.

• Three Year: The price return is -40.50%.

• Five Year: The total return is -88.65%.

TMF has a "mixed" split history, meaning it has had both forward splits (where one share becomes many) and reverse splits (where many shares combine into fewer). The most recent event was on December 4, 2023, with a coefficient of 0.1.

Income and Distribution Explanation

TMF pays distributions usually every quarter. Over the last 12 months, it has paid out 4 times.

• Distribution Yield: 5.53%

• Trailing Distributions: $1.39 per share

It is important to remember that a high distribution yield does not guarantee a profit. In this case, the total returns (which include distributions) are still deeply negative. For example, the one-year total return is -34.74%, which is slightly better than the price return of -37.32%, but still represents a large loss.

Price and 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 shows a severe erosion-risk flag. This was triggered because of a weak erosion score of 30 and a label of "significant price erosion." This means the share price has dropped substantially over time.

Top Holdings

As of October 8, 2026, the fund's holdings include:

• TLT Swap Asset Leg: 65.37%

• iShares 20+ Year Treasury Bond ETF (TLT): 18.56%

• Dreyfus Govt Cash Man Ins: 4.94%

• Goldman Finl Sq Trsry Inst 506: 4.03%

Pros

• Provides a way to get amplified (3X) exposure to long-term Treasury bonds.

• Provides regular quarterly cash distributions.

Cons

• Extreme price volatility due to leverage.

• Significant historical price declines over 1, 3, and 5-year periods.

• Severe erosion-risk flag.

Beginner Takeaway

TMF is not a traditional "buy and hold" investment for most beginners. While it offers a 5.53% distribution yield, the share price has fallen sharply. This shows that high income can be misleading if the principal value of the investment is dropping quickly.