Share-split context: A reverse split was recorded on Mar 10, 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 Direxion Daily TSLA Bear 1X Shares (TSLS)

What this ETF is trying to do

The TSLS ETF is a specialized investment tool known as an "inverse" single-stock ETF. It is designed to track the opposite movement of Tesla, Inc. (TSLA) stock. Because it is an inverse fund, it aims to provide a return that moves in the opposite direction of Tesla's share price.

What the numbers show

The performance data for TSLS shows different results depending on whether you look at share prices or total returns.

• Year-to-Date (YTD): The price return is approximately 5.88%. When including distributions, the YTD total return is approximately 7.92%.

• One Year: The one-year price return was approximately -2.04%. However, the one-year total return was positive at approximately 0.90%.

• Three Year: The three-year price return shows a significant decline of approximately -71.26%. The three-year total return was approximately -68.29%.

It is 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 lost investment value. Because of this history, an estimated price from one year ago is not provided; instead, we use the split-adjusted percentage returns listed above.

Income and distribution explanation

TSLS provides cash distributions to investors. The trailing distributions are approximately $1.13 per share, resulting in a distribution yield of approximately 2.10%. These payments usually happen on a quarterly basis, with four payments recorded over the last 12 months. While these distributions provide cash, they are not a guarantee of overall profit.

NAV erosion explanation

The term "NAV erosion" refers to a decline in the Net Asset Value (the actual value of the fund's underlying assets). 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.

Regarding price-based evidence, the fund has an erosion-risk score of 94, which is labeled as "Stable / sideways." The erosion severity is described as "good," and there is no severe erosion-risk flag present.

Pros

• The fund provides a way to potentially profit when Tesla's stock price moves down.

• It offers a distribution yield of approximately 2.10%.

Cons

• The three-year total return has been significantly negative.

• As an inverse single-stock ETF, it is highly specialized and carries specific risks related to the movement of one company.

Beginner takeaway

TSLS is an inverse ETF, meaning it is built to move opposite to Tesla. When looking at its performance, always distinguish between the price return (just the share price) and the total return (which includes distributions). While the fund pays a small amount of income, its long-term price history shows significant declines.