Share-split context: A forward split was recorded on May 1, 2017 with coefficient 2. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

What this ETF is trying to do

The Direxion Daily Small Cap Bull 3X Shares (TNA) is a leveraged ETF. This means it uses financial tools to try and amplify the daily returns of small-company stocks. Specifically, it is a "3X" fund, which aims to provide three times the daily performance of its target index.

What the numbers show

Because this ETF has a history of share splits, we look at split-adjusted returns to see how it has performed.

• Year-to-Date (YTD): The price return is approximately 26.11%, and the total return is approximately 26.40%.

• One Year: The price return is approximately 23.77%, and the total return is approximately 24.14%.

• Three Year: The price return is approximately 114.05%, and the total return is approximately 120.04%.

• Five Year: The total return is approximately -32.09%.

Price return only measures the change in the share price. Total return is a different measure that includes the distributions paid out to investors.

Income and distribution explanation

TNA pays distributions usually every quarter. Over the last 12 months, it has made 4 payouts. The distribution yield is approximately 0.31%.

It is important for beginners to know that a distribution yield is not the same as a total return. While distributions provide cash income, they do not guarantee that the original money invested (the principal) will stay the same or grow.

NAV erosion explanation

"NAV erosion" happens when the value of an ETF's underlying assets declines over time, often causing the share price to drop even if the market seems flat.

For TNA, the erosion-risk score is 100, and the erosion severity is labeled as "good." The data states "No price erosion detected," and the severe erosion-risk flag is false.

Share Split History

This ETF has a history of forward splits. In a forward split, each old share becomes multiple new shares, and the price per share drops proportionally. For example, the last split on May 1, 2017, had a coefficient of 2. This means one old share became two new shares. A forward split does not create a gain or a loss; it simply changes the number of shares an investor holds.

Pros

• Strong positive total returns over the one-year and three-year periods.

• No price erosion detected according to the erosion-risk score.

Cons

• Significant loss over the five-year total return period (-32.09%).

• Leveraged ETFs can be very volatile.

Beginner takeaway

TNA is a high-power tool designed for short-term goals, not necessarily for long-term saving. While it has seen big gains recently, the five-year data shows it can also lose a large amount of value. Always remember that a high distribution yield alone can be misleading and does not guarantee the fund is a safe investment.