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TZA tax-loss harvesting alternatives

Direxion Daily Small Cap Bear 3X ETF (Direxion) tracks Russell 2000. If you hold TZA at a loss, these ETFs track a different index, which generally makes them less likely to be considered “substantially identical” — while still moving closely with TZA during the 31-day wait.

Held fund	Index tracked	Issuer	Expense ratio	AUM	Holdings	Category
TZA-3x inverse Direxion Daily Small Cap Bear 3X ETF	Russell 2000	Direxion	0.99%	$240.84M	11	Leveraged / inverse

Sources: issuer fund page · public fund profile. Fund data as of 2026-10-16.

Leveraged / inverse fund. These funds reset daily and can behave very differently from the index over weeks. Two leveraged funds on the same index (e.g. a 2x and a 3x, or two 3x funds from different issuers) may still be viewed by some as substantially identical — there is no IRS ruling either way. The alternatives below are limited to funds on a different index with similar leverage in the same direction.

TZA wash sale alternatives (different index)

ETF	Index tracked	Issuer	Expense ratio	AUM	1-yr correlation	Holdings overlap	Notes
SDS-2x inverse ProShares UltraShort S&P 500	S&P 500	ProShares	0.91%	$350.29M	0.827	n/a	different indexdifferent leverage
SPXU-3x inverse ProShares UltraPro Short S&P500	S&P 500	ProShares	0.90%	$411.25M	0.826	n/a	different index
SPXS-3x inverse Direxion Daily S&P 500 Bear 3X ETF	S&P 500	Direxion	1.04%	$338.04M	0.825	n/a	different index
SDOW-3x inverse ProShares UltraPro Short Dow30	Dow Jones Industrial Average	ProShares	0.95%	$142.74M	0.785	n/a	different indexloose match
SQQQ-3x inverse ProShares UltraPro Short QQQ	NASDAQ 100 Index	ProShares	0.94%	$1.98B	0.747	n/a	different indexloose match
SOXS-3x inverse Direxion Daily Semiconductor Bear 3X ETF	NYSE Semiconductor Index	Direxion	1.00%	$2.51B	0.684	n/a	different indexloose match

Sorted by 1-year correlation of daily total returns with TZA (through 2026-10-16). Holdings overlap = sum of the smaller weight of each common stock, from issuer holdings files; “n/a” where the issuer does not offer a free download or for bond/international/commodity funds. Hover a value for its as-of dates.

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Unleveraged funds on the same index

These track Russell 2000 without leverage. Not suggested as swaps: a fund on the same index with different leverage is a gray area that some practitioners treat as potentially substantially identical.

ETF	Index tracked	Issuer	Expense ratio	AUM	1-yr correlation	Holdings overlap	Notes
IWM iShares Russell 2000 ETF	Russell 2000	BlackRock	0.19%	$77.08B	-0.998	n/a	same index, different leverage — gray area
VTWO Vanguard Russell 2000 ETF	Russell 2000	Vanguard	0.06%	$16.54B	-0.999	n/a	same index, different leverage — gray area

30-day wash-sale calendar for TZA

Sell (trade) date:

The window is 30 calendar days before and after the sale (61 days total, IRC §1091(a)). Buying the replacement fund right away is the point of a swap; the dates above are about buying back the fund you sold, or anything substantially identical to it.

Before you swap

Turn off dividend reinvestment for TZA in every account (including IRAs) for the window — a reinvested dividend is a purchase.
Check automatic investments, a spouse’s accounts, and any TZA bought in the 30 days before the sale.
Your broker generally only flags wash sales for the identical security in the same account. You are responsible for the rest.
Read how wash sales work and the FAQ, then confirm your plan with a tax professional.