EDZ -3x Direxion Daily MSCI Emerging Markets Bear 3X ETF

EDZ

ETF -3x BEAR extreme
Direxion Daily MSCI Emerging Markets Bear 3X ETF
Issuer: Direxion · Tracks: MSCI Emerging Markets (EEM) · Listed: 2008-12-17
Implied AUM
$18.3M
Last Close
$17.71
20260720
30d Avg Vol
251,633
Options
available
Realized return vs theoretical -3x MSCI Emerging Markets
Pair counterpart found: EDC (+3x bull, Direxion Daily MSCI Emerging Markets Bull 3X ETF)
Shorting both legs of a daily-reset bull/bear pair captures combined decay drift over time. Theoretical "free money" — actual edge depends on borrow rates (often punitive on the bear leg) and assignment risk on hard-to-borrow products.
Other leveraged products tracking MSCI Emerging Markets
Symbol Factor Direction Issuer Name Implied AUM 30d Vol Options
EDC +3x BULL Direxion Direxion Daily MSCI Emerging Markets Bull 3X ETF $148.9M 112,824
EET +2x BULL ProShares ProShares Ultra MSCI Emerging Markets $35.1M 14,676
XXCH +2x BULL Direxion Direxion Daily MSCI Emerging Markets ex China Bull 2X Shares $2.5M 1,865
EEV -2x BEAR ProShares ProShares Trust UltraShort MSCI Emerging Markets $2.5M 24,088

How EDZ works

EDZ targets -3x the daily return of MSCI Emerging Markets — not the cumulative return over multi-day windows. The fund rebalances at the close each day using swaps or futures, which is what creates the volatility drag the chart above visualizes.

Mathematical headline: drag ≈ −0.5 × N × (N−1) × σ² per period. For a -3x product on an underlying with 25% annualized vol, expected annual drag is around 18.8%. Add expense ratio and the realized number is typically worse.

  • Short-term tactical: daily and intraday holds are where these products were designed to live.
  • Premium selling: options on EDZ carry very rich IV — see the quote page for IV rank and straddle pricing.
  • Multi-day directional: works in strong trends; gets eaten alive in chop. Use the chart above to gauge the realized vs theoretical track record.