US-listed · NYSE Arca · FIF-eligible (above NZ$50K)
Direxion TZA Direxion Daily Small Cap Bear 3X Shares
Designed to deliver -3× the daily return of the Russell 2000 Index. Inverse-leveraged: profits if small-caps fall. Daily rebalancing produces severe decay over multi-day holds.
Updated Reviewed quarterly
TZA is an INVERSE-leveraged ETF (-3× daily Russell 2000). Compounding losses are the historical norm over multi-month holds — the structural combination of daily-reset decay PLUS small-cap upward drift means TZA typically loses 70-95% of starting value over multi-year periods. Designed by Direxion for daily-cycle bearish bets only. Never a buy-and-hold instrument. ASIC and the US SEC have issued investor alerts on this product class. Read our full leveraged-ETF risk explainer at /learn/leveraged-etfs-risk-nz/ before considering this fund.
About this fund
What is TZA?
TZA is the US-listed ticker for Direxion Daily Small Cap Bear 3X Shares, issued by Direxion. Designed to deliver -3× the daily return of the Russell 2000 Index. Inverse-leveraged: profits if small-caps fall. Daily rebalancing produces severe decay over multi-day holds. TER is 0.94% per year.
How to buy
Where can I buy TZA from New Zealand?
Hatch NZ-built. US$3 flat per trade, ~0.5% FX.
Stake Commission-free US shares; ~0.7% FX.
Sharesies NZ + AU + US in one account; tiered subscription pricing.
Interactive Brokers Tiered commissions; FX margin ~0.002% (lowest published of platforms reviewed).
See the full platform comparison for fees, minimums, and supported markets across all 11 NZ-accessible brokers.
NZ tax
How is TZA taxed for NZ investors?
TZA is US-listed, so it sits in the Foreign Investment Fund (FIF) regime once your overseas-share holdings exceed NZ$50,000 cost basis. Below that threshold, the FIF regime does not apply and you pay tax on dividends only.
Above NZ$50K cost basis, most NZ retail investors use the Fair Dividend Rate (FDR) method — deemed income = 5% × opening market value × your marginal tax rate. FDR vs CV method →
Tax outcomes depend on your portfolio size, marginal rate, and FDR-vs-CV election. See PIE vs FIF for the full comparison and consult a registered NZ tax adviser for personalised guidance.
FAQ
Common questions about TZA
What is the TZA ETF? ⌄
TZA is the Direxion Daily Small Cap Bear 3X Shares — an inverse-leveraged ETF designed to deliver -3× the daily return of the Russell 2000 Index (US small-cap index). When the Russell 2000 falls 1% in a day, TZA aims to rise ~3% (and vice versa). The exposure resets every trading day. TER is 0.94%. Designed for daily-cycle bearish bets on US small-caps; never for buy-and-hold.
Why does TZA typically lose money over time? ⌄
Two structural reasons. First, the daily-reset volatility decay common to all leveraged ETFs (see our risk explainer). Second, US small-caps have a long-run upward bias — the Russell 2000 has appreciated meaningfully over multi-decade periods, so an inverse-leveraged product is fighting the underlying drift even before decay. Over multi-year holds, TZA has historically lost ~70-95% of starting value across most measurement windows. TZA only "wins" during sustained small-cap bear markets held for short windows.
Can NZ residents buy TZA? ⌄
Yes. TZA is available via Hatch, Stake, Sharesies (US market), and Interactive Brokers. Above NZ$50,000 cost basis FIF rules apply. Note: inverse-leveraged products interact particularly badly with FDR — you pay 5% × MV regardless of fund performance, and "FIF income on a position designed to lose money in trending up-markets" is generally a poor tax outcome.
What use case does TZA fit? ⌄
Strictly daily-cycle bearish tactical bets, or short-term hedging of an existing long small-cap position over a 1-3 day event window (e.g. ahead of a Fed announcement or earnings season). Holding for periods longer than days exposes the position to compounding decay PLUS the small-cap upward drift simultaneously. ETFs.co.nz publishes TZA reference data factually but does not recommend it for any investor profile longer than tactical short windows.
Related ETFs and resources
Leveraged ETFs — risk explainer (READ FIRST)
Why TZA / SOXS / SPXU lose money over time even when wrong-way.
IWM — Russell 2000 (unleveraged)
Direct unleveraged small-cap exposure if your view is bullish.
SPXU — 3× inverse S&P 500
Same inverse-leverage mechanic on broader index.
SOXS — 3× inverse semiconductor
Same approach, semiconductor-sector bear bet.
FIF tax explained
Why FIF + inverse-leverage = particularly poor after-tax outcomes.