EDZ vs. SH

Last updated Jul 12, 2026

EDZ (Direxion Daily Emerging Markets Bear 3X Shares) and SH (ProShares Short S&P500) are both exchange-traded funds - EDZ is a Leveraged Equities fund tracking the MSCI Emerging Markets Index (-300%), while SH is a Inverse Equities fund tracking the S&P 500 Index (-100% daily). Both are passively managed. Over the past 10 years, EDZ returned -35.27%/yr vs -12.51%/yr for SH. A 0.73 correlation means they provide meaningful diversification when combined. EDZ charges 1.08%/yr vs 0.89%/yr for SH.

Performance

EDZ vs. SH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Emerging Markets Bear 3X Shares (EDZ) and ProShares Short S&P500 (SH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EDZ achieves a -55.94% return, which is significantly lower than SH's -7.18% return. Over the past 10 years, EDZ has underperformed SH with an annualized return of -35.27%, while SH has yielded a comparatively higher -12.51% annualized return.

EDZ

• 1D: -0.84%
• 1M: -2.37%
• 6M: -49.66%
• YTD: -55.94%
• 1Y: -70.46%
• 3Y*: -47.23%
• 5Y*: -26.31%
• 10Y*: -35.27%

SH

• 1D: 0.73%
• 1M: -0.85%
• 6M: -5.53%
• YTD: -7.18%
• 1Y: -13.05%
• 3Y*: -11.50%
• 5Y*: -8.24%
• 10Y*: -12.51%

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

EDZ vs. SH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EDZ Direxion Daily Emerging Markets Bear 3X Shares	-55.94%	-59.30%	-12.71%	-20.28%	49.27%	-8.69%	-68.79%	-43.01%	32.87%	-64.12%
SH ProShares Short S&P500	-7.18%	-11.35%	-13.52%	-14.80%	18.98%	-24.21%	-25.09%	-22.12%	4.93%	-17.36%

Correlation

The correlation between EDZ and SH is 0.74, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.74
Correlation (3Y) Calculated over the trailing 3-year period	0.66
Correlation (5Y) Calculated over the trailing 5-year period	0.65
Correlation (10Y) Calculated over the trailing 10-year period	0.67
Correlation (All Time) Calculated using the full available price history since Dec 30, 2008	0.73

The correlation between EDZ and SH has been stable across timeframes, ranging from 0.65 to 0.74 - a consistent structural relationship.

EDZ vs. SH - Sectors Allocation Comparison

Sectors	EDZ	SH
Financial Services	26.2%	98.8%
Industrials	19.7%	-
Technology	14.6%	-
Consumer Cyclical	8.0%	-
Utilities	7.2%	-
Consumer Defensive	6.0%	-
Healthcare	5.9%	-
Energy	3.9%	-
Basic Materials	3.7%	-
Communication Services	3.4%	-
Real Estate	1.4%	-

Return for Risk

EDZ vs. SH — Risk / Return Rank

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

EDZ

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

SH

SH Risk / Return Rank: 2
SH Sharpe Ratio Rank: 1
SH Sortino Ratio Rank: 2
SH Omega Ratio Rank: 2
SH Calmar Ratio Rank: 2
SH Martin Ratio Rank: 1

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. SH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Emerging Markets Bear 3X Shares (EDZ) and ProShares Short S&P500 (SH). 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	SH	Difference
Sharpe ratio: Return per unit of total volatility	-1.02	-1.05	+0.03
Sortino ratio: Return per unit of downside risk	-1.95	-1.48	-0.47
Omega ratio: Gain probability vs. loss probability	0.77	0.84	-0.06
Calmar ratio: Return relative to maximum drawdown	-0.94	-0.82	-0.12
Martin ratio: Return relative to average drawdown	-1.57	-1.55	-0.01

EDZ vs. SH - Sharpe Ratio Comparison

The current EDZ Sharpe Ratio is -1.02, which is comparable to the SH Sharpe Ratio of -1.05. The chart below compares the historical Sharpe Ratios of EDZ and SH, 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. SH - Drawdown Comparison

The maximum EDZ drawdown since its inception was -99.99%, which is greater than SH's maximum drawdown of -94.66%. Use the drawdown chart below to compare losses from any high point for EDZ and SH.

Drawdown Indicators

	EDZ	SH	Difference
Max Drawdown Largest peak-to-trough decline	-99.99%	-94.66%	-5.33%
Max Drawdown (1Y) Largest decline over 1 year	-74.94%	-16.06%	-58.88%
Max Drawdown (3Y) Largest decline over 3 years	-90.46%	-38.82%	-51.64%
Max Drawdown (5Y) Largest decline over 5 years	-92.91%	-44.53%	-48.38%
Max Drawdown (10Y) Largest decline over 10 years	-98.90%	-74.80%	-24.10%
Current Drawdown Current decline from peak	-99.99%	-94.57%	-5.42%
Average Drawdown Average peak-to-trough decline	-97.73%	-67.85%	-29.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	44.71%	8.41%	+36.30%

Volatility

EDZ vs. SH - Volatility Comparison

Direxion Daily Emerging Markets Bear 3X Shares (EDZ) has a higher volatility of 31.98% compared to ProShares Short S&P500 (SH) at 4.09%. This indicates that EDZ's price experiences larger fluctuations and is considered to be riskier than SH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EDZ	SH	Difference
Volatility (1M) Calculated over the trailing 1-month period	31.98%	4.09%	+27.89%
Volatility (6M) Calculated over the trailing 6-month period	62.58%	9.95%	+52.63%
Volatility (1Y) Calculated over the trailing 1-year period	69.16%	12.51%	+56.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	59.14%	16.96%	+42.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	61.50%	18.00%	+43.50%

EDZ vs. SH - Expense Ratio Comparison

EDZ has a 1.08% expense ratio, which is higher than SH's 0.89% expense ratio.

Dividends

EDZ vs. SH - Dividend Comparison

EDZ's dividend yield for the trailing twelve months is around 7.59%, more than SH's 4.21% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
EDZ Direxion Daily Emerging Markets Bear 3X Shares	7.59%	6.58%	4.87%	4.34%	0.00%	0.00%	0.82%	1.67%	0.68%	0.00%
SH ProShares Short S&P500	4.21%	4.49%	6.20%	5.37%	1.08%	0.00%	0.16%	1.76%	1.01%	0.06%

Frequently Asked Questions

Can I hold both EDZ and SH in my portfolio?

EDZ and SH have a correlation of 0.74, 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 SH?

EDZ has higher volatility (31.98%) compared to SH (4.09%). In terms of maximum drawdown, EDZ dropped -99.99% vs SH's -94.66%.

Which ETF is better, EDZ or SH?

On 10-year performance, SH leads with -12.51% vs -35.27% for EDZ. On fees, SH is cheaper at 0.89% per year. On volatility, SH has been the lower-risk option at 4.09%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EDZ or SH?

Over the 10-year period, SH has performed better with a -12.51% return vs -35.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EDZ or SH?

SH is cheaper with a 0.89% expense ratio, compared with 1.08% for EDZ.

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

EDZ has the higher dividend yield at 7.59%, compared with 4.21% for SH.

What is the main difference between EDZ and SH?

EDZ is categorized as Leveraged Equities, while SH is Inverse Equities. EDZ tracks MSCI Emerging Markets Index (-300%), while SH tracks S&P 500 Index (-100% daily). They also come from different issuers: Direxion and ProShares. Their fees differ too: 1.08% for EDZ and 0.89% for SH.

Which has better risk-adjusted returns?

EDZ currently has the higher Sharpe Ratio (-1.02 vs -1.05), 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.