What this ETF is trying to do

The Direxion Daily TSM Bull 2X Shares (TSMX) is a leveraged ETF. This means it is designed to amplify the daily movement of a specific asset. In this case, it focuses on Taiwan Semiconductor Manufacturing Co Ltd (TSM). Because it is a "2X" fund, it seeks to provide twice the daily return of its target.

What the numbers show

As of October 5, 2026, the share price is $102.15. The fund has seen significant growth recently:

• Year-to-Date (YTD): The price return is approximately 106.87%, and the total return is approximately 109.28%.

• One-Year Performance: The price return is approximately 98.97%, while the total return is approximately 114.47%.

Price Return vs. Total Return

It is important to know the difference between these two numbers. The price return only measures how much the share price went up or down. The total return is a broader measure that includes both the price change and the cash distributions paid to investors.

For example, the estimated price from roughly one year ago was $51.34. If an investor had put $10,000 into the fund based on that estimated price, the price-only growth (98.97%) would have increased the value of those shares to nearly $19,897.

Income and distribution explanation

TSMX pays out cash to investors. Over the last 12 months, it has made 5 payments, usually on a quarterly basis. The distribution yield is approximately 4.19%.

Beginners should remember that a high distribution yield alone can be misleading. While these payments provide cash income, they do not guarantee that the original money invested (the principal) is safe.

NAV erosion explanation

"NAV erosion" happens when the value of an ETF's underlying assets declines over time, often making it hard for the share price to recover.

For TSMX, the erosion-risk score is 100, and the erosion severity is labeled as "good." The data indicates that no price erosion has been detected, and the severe erosion-risk flag is false.

Pros

• High Recent Growth: The fund has shown very strong price and total returns over the last year and year-to-date.

• Low Erosion Risk: Current measurements show no signs of NAV erosion.

• Additional Income: The fund provides a distribution yield of about 4.19%.

Cons

• Leverage Risk: As a leveraged ETF, this fund is more volatile than a standard ETF.

• Concentration: The fund is highly focused on one company. Its only holding is Taiwan Semiconductor Manufacturing Co Ltd ADR (6.53% weight as of October 7, 2026).

Beginner takeaway

TSMX is a high-power tool used to bet on the growth of a single company. While the recent returns have been very high, leveraged funds carry more risk than traditional investments. Always look at both the price return and the total return to see the full picture.