Share-split context: This ETF has both forward- and reverse-split history. The most recent recorded event was on Nov 4, 2024 with coefficient 0.05. 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: DIREXION DAILY FTSE CHINA BEAR 3X SHARES (YANG)

What this ETF is trying to do

The YANG ETF is a specialized tool used by investors. It is both "leveraged" and "inverse." This means it is designed to move in the opposite direction of certain China-related indexes, often by three times the daily amount. Because it is leveraged, its price can change very quickly.

What the numbers show

The current price of YANG is $33.68. When looking at how this ETF has performed, it is important to look at two different types of returns:

• Price Return: This measures only the change in the share price.

• Year-to-date (YTD) price return: approximately 33.97%

• One-year price return: approximately 54.35%

• Three-year price return: approximately -85.03%

• Total Return: This includes the price change plus any distributions (cash payments) made to investors.

• YTD total return: approximately 36.97%

• One-year total return: approximately 59.63%

• Three-year total return: approximately -83.17%

This ETF has a history of "mixed" splits. This means it has had both forward splits (where one old share becomes multiple new shares) and reverse splits (where multiple old shares are combined into fewer new shares). Because of this history, we use split-adjusted returns to understand the performance.

Income and distribution explanation

YANG pays out cash distributions. The distribution yield is approximately 2.91%. Over the last 12 months, it has made 4 payments. While these payments provide cash to investors, a high yield does not guarantee that the investment value will stay the same.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value, or the actual underlying value of the fund. While falling share prices can sometimes be a sign of erosion, it is not always the same thing. For this ETF, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this fund.

Pros

• The ETF has shown positive price and total returns so far this year.

• It provides a way to bet against specific market movements using leverage.

Cons

• The three-year and five-year total returns are significantly negative.

• Because it is a leveraged and inverse ETF, the price can be very volatile (change rapidly).

• The fund has a history of multiple splits.

Beginner takeaway

YANG is a complex, leveraged instrument. It is important to distinguish between price return (the share price) and total return (price plus distributions). While the fund has had strong performance recently, its long-term history shows large declines. Always remember that distributions provide cash but do not protect your original investment from price changes.