If you bought Direxion Daily 20+ Year Treasury Bull 3X Shares (NYSEARCA:TMF) five years ago expecting triple the returns of long Treasuries, your $10,000 is now worth roughly $1,527. The unleveraged version, iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT), would have left you with $7,109. The fund did exactly what its prospectus promised, and that’s the problem.
What You’re Actually Paying
TMF’s marketing sells one number: 3x daily exposure to long Treasuries. Its primary holding is TLT, the iShares 20+ Year Treasury Bond ETF, plus a U.S. dollar sleeve and swap contracts to lever the position. Direxion charges a management fee for that wrapper. Multiply by leverage, and a fund-level expense ratio that looks small becomes a meaningful annual drag on a tripled balance.
But the explicit fee is the cheap part. The expensive part is the math of daily rebalancing. Over the past five years, TMF is down 84.73%. Over 10 years, it is down 84.24%. A simple 3x multiple of TLT’s five-year drawdown of 28.91% would suggest a loss of around 87%, close to the actual print, but the path matters. Every choppy stretch eats principal that compounding cannot recover.
The Part the Factsheet Doesn’t Highlight
The fund resets its leverage every single day. In a sideways market, that reset quietly burns money. Direxion itself flags that TMF is intended as a short-term tactical instrument due to the effects of compounding with leverage. One outside analysis put it more bluntly: “Due to inherent costs associated with leverage, holding these instruments over time is guaranteed to result in losses, even if they perfectly mirrored the underlying asset daily.”
The current rate backdrop makes the decay louder. The 10-year Treasury yield sat at 4.51% on June 22, 2026, with a 12-month range of 3.97% to 4.67%. That is a 70 basis point swing, and TMF amplifies every wiggle by three. Korean retail investors learned this in real time: when the 20-year yield broke 5% in January 2025, TMF fell 24% in a single month. By late November 2023, the fund was down 40% year to date, yet investors kept averaging down on a rate-cut thesis that never showed up.
There is also a quieter tax wrinkle. TMF uses swaps, which generate ordinary-income distributions. Quarterly distributions of $0.4054 per share in May 2026 and $0.4591 in December 2025 may look like yield, but they arrive on a share price that has eroded for years. The dividend amounts to income on a shrinking base.
The Cheaper Mirror
If the bet is “long Treasury duration goes up when the Fed cuts,” the direct expression is TLT itself, or Vanguard’s Vanguard Extended Duration Treasury ETF (NYSEARCA:EDV) for even longer duration. Both charge a fraction of TMF’s all-in cost and carry no daily reset. The trade-off is straightforward: you give up the 3x upside on a good day and skip the 3x downside on a bad one. Over the past year, TLT returned 3.88% while TMF lost 2.83%. In a flat-to-volatile rate environment, the leveraged wrapper paid you to lose.
The yield curve picture reinforces the point. The 10Y-2Y spread has compressed from 0.74% in February 2026 to 0.34% on June 23, 2026, a flattening that historically punishes leveraged long-duration plays.
What This Means for You
TMF functions as a stopwatch, suited only to very short holding periods. The fund does what it says on the tin for a day. Past that, the question becomes whether you can stomach a structure where a 5-year holding period turned $10,000 into roughly $1,527 while the underlying lost a fraction of that. If you cannot answer how many trading days you plan to hold before you buy, the wrapper is probably charging you for a bet you did not intend to make.
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