EDZ vs. DFAE

Last updated Jun 21, 2026

EDZ (Direxion Daily Emerging Markets Bear 3X Shares) and DFAE (Dimensional Emerging Core Equity Market ETF) are both exchange-traded funds - EDZ is a Leveraged Equities fund tracking the MSCI Emerging Markets Index (-300%), while DFAE is a Emerging Markets Equities fund actively managed by Dimensional. EDZ is passively managed, while DFAE is actively managed. Over the past 5 years, EDZ returned -27.88%/yr vs 9.97%/yr for DFAE. At a correlation of -0.98, they often move in opposite directions. EDZ charges 1.08%/yr vs 0.35%/yr for DFAE.

Performance

EDZ vs. DFAE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Emerging Markets Bear 3X Shares (EDZ) and Dimensional Emerging Core Equity Market ETF (DFAE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EDZ achieves a -61.63% return, which is significantly lower than DFAE's 28.32% return.

EDZ

• 1D: -9.48%
• 1M: -24.25%
• YTD: -61.63%
• 6M: -63.60%
• 1Y: -77.17%
• 3Y*: -48.23%
• 5Y*: -27.88%
• 10Y*: -37.38%

DFAE

• 1D: 2.88%
• 1M: 6.95%
• YTD: 28.32%
• 6M: 30.49%
• 1Y: 52.54%
• 3Y*: 22.82%
• 5Y*: 9.97%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

EDZ vs. DFAE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
EDZ Direxion Daily Emerging Markets Bear 3X Shares	-61.63%	-59.30%	-12.71%	-20.28%	49.27%	-8.69%	-14.81%
DFAE Dimensional Emerging Core Equity Market ETF	28.32%	31.48%	7.68%	12.63%	-17.52%	3.53%	5.93%

Correlation

The correlation between EDZ and DFAE is -0.99, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.99
Correlation (3Y) Calculated over the trailing 3-year period	-0.99
Correlation (5Y) Calculated over the trailing 5-year period	-0.99
Correlation (All Time) Calculated using the full available price history since Dec 2, 2020	-0.98

The correlation between EDZ and DFAE has been stable across timeframes, ranging from -0.99 to -0.98 - a consistent structural relationship.

EDZ vs. DFAE - Sectors Allocation Comparison

Sectors	EDZ	DFAE
Financial Services	26.2%	15.8%
Industrials	19.7%	9.1%
Technology	14.6%	41.6%
Consumer Cyclical	8.0%	8.1%
Utilities	7.2%	2.1%
Consumer Defensive	6.0%	2.9%
Healthcare	5.9%	3.1%
Energy	3.9%	3.5%
Basic Materials	3.7%	7.0%
Communication Services	3.4%	5.4%
Real Estate	1.4%	1.4%

Return for Risk

EDZ vs. DFAE — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

EDZ

EDZ Risk / Return Rank: 0
EDZ Sharpe Ratio Rank: 1
EDZ Sortino Ratio Rank: 0
EDZ Omega Ratio Rank: 0
EDZ Calmar Ratio Rank: 0
EDZ Martin Ratio Rank: 0

DFAE

DFAE Risk / Return Rank: 80
DFAE Sharpe Ratio Rank: 82
DFAE Sortino Ratio Rank: 75
DFAE Omega Ratio Rank: 82
DFAE Calmar Ratio Rank: 81
DFAE Martin Ratio Rank: 80

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

EDZ vs. DFAE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Emerging Markets Bear 3X Shares (EDZ) and Dimensional Emerging Core Equity Market ETF (DFAE). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	EDZ	DFAE	Difference
Sharpe ratio: Return per unit of total volatility	-1.17	2.47	-3.64
Sortino ratio: Return per unit of downside risk	-2.51	3.15	-5.66
Omega ratio: Gain probability vs. loss probability	0.71	1.46	-0.75
Calmar ratio: Return relative to maximum drawdown	-1.00	4.04	-5.04
Martin ratio: Return relative to average drawdown	-1.65	14.97	-16.63

EDZ vs. DFAE - Sharpe Ratio Comparison

The current EDZ Sharpe Ratio is -1.17, which is lower than the DFAE Sharpe Ratio of 2.47. The chart below compares the historical Sharpe Ratios of EDZ and DFAE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

EDZ vs. DFAE - Drawdown Comparison

The maximum EDZ drawdown since its inception was -99.99%, which is greater than DFAE's maximum drawdown of -32.21%. Use the drawdown chart below to compare losses from any high point for EDZ and DFAE.

Drawdown Indicators

	EDZ	DFAE	Difference
Max Drawdown Largest peak-to-trough decline	-99.99%	-32.21%	-67.78%
Max Drawdown (1Y) Largest decline over 1 year	-77.17%	-12.80%	-64.37%
Max Drawdown (3Y) Largest decline over 3 years	-90.30%	-18.12%	-72.18%
Max Drawdown (5Y) Largest decline over 5 years	-92.78%	-31.73%	-61.05%
Max Drawdown (10Y) Largest decline over 10 years	-99.16%	—	—
Current Drawdown Current decline from peak	-99.99%	0.00%	-99.99%
Average Drawdown Average peak-to-trough decline	-97.72%	-10.26%	-87.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	46.45%	3.45%	+43.00%

Volatility

EDZ vs. DFAE - Volatility Comparison

Direxion Daily Emerging Markets Bear 3X Shares (EDZ) has a higher volatility of 33.07% compared to Dimensional Emerging Core Equity Market ETF (DFAE) at 10.58%. This indicates that EDZ's price experiences larger fluctuations and is considered to be riskier than DFAE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EDZ	DFAE	Difference
Volatility (1M) Calculated over the trailing 1-month period	33.07%	10.58%	+22.49%
Volatility (6M) Calculated over the trailing 6-month period	59.05%	18.91%	+40.14%
Volatility (1Y) Calculated over the trailing 1-year period	65.77%	20.95%	+44.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	58.42%	18.26%	+40.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	61.57%	18.20%	+43.37%

EDZ vs. DFAE - Expense Ratio Comparison

EDZ has a 1.08% expense ratio, which is higher than DFAE's 0.35% expense ratio.

Dividends

EDZ vs. DFAE - Dividend Comparison

EDZ's dividend yield for the trailing twelve months is around 11.51%, more than DFAE's 1.71% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
DFAE Dimensional Emerging Core Equity Market ETF	1.71%	2.20%	2.35%	2.43%	2.85%	1.63%	0.01%	0.00%	0.00%
EDZ Direxion Daily Emerging Markets Bear 3X Shares	11.51%	6.58%	4.87%	4.34%	0.00%	0.00%	0.82%	1.67%	0.68%

Frequently Asked Questions

Can I hold both EDZ and DFAE in my portfolio?

EDZ and DFAE have a correlation of -0.99, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EDZ or DFAE?

EDZ has higher volatility (33.07%) compared to DFAE (10.58%). In terms of maximum drawdown, EDZ dropped -99.99% vs DFAE's -32.21%.

Which ETF is better, EDZ or DFAE?

On 5-year performance, DFAE leads with 9.97% vs -27.88% for EDZ. On fees, DFAE is cheaper at 0.35% per year. On volatility, DFAE has been the lower-risk option at 10.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EDZ or DFAE?

Over the 5-year period, DFAE has performed better with a 9.97% return vs -27.88%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EDZ or DFAE?

DFAE is cheaper with a 0.35% expense ratio, compared with 1.08% for EDZ.

Which ETF pays a higher dividend yield, EDZ or DFAE?

EDZ has the higher dividend yield at 11.51%, compared with 1.71% for DFAE.

What is the main difference between EDZ and DFAE?

EDZ is categorized as Leveraged Equities, while DFAE is Emerging Markets Equities. They also come from different issuers: Direxion and Dimensional. Their fees differ too: 1.08% for EDZ and 0.35% for DFAE.

Which has better risk-adjusted returns?

DFAE currently has the higher Sharpe Ratio (2.47 vs -1.17), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.