FAZ vs. BNKD
FAZ (Direxion Daily Financial Bear 3X Shares) and BNKD (MicroSectors U.S. Big Banks Index -3X Inverse Leveraged ETNs) are both exchange-traded funds - FAZ is a Leveraged Equities fund tracking the Russell 1000 Financial Services Index (-300%), while BNKD is a Inverse Equities fund tracking the Solactive MicroSectors U.S. Big Banks Index (-300%). Both are passively managed. Over the past year, FAZ returned -17.74% vs -71.32% for BNKD. Their correlation of 0.87 suggests significant overlap in exposure. FAZ charges 1.07%/yr vs 0.95%/yr for BNKD.
Performance
FAZ vs. BNKD - Performance Comparison
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Returns By Period
In the year-to-date period, FAZ achieves a 1.40% return, which is significantly higher than BNKD's -38.75% return.
FAZ
- 1D
- -1.75%
- 1M
- -12.03%
- YTD
- 1.40%
- 6M
- 5.46%
- 1Y
- -17.74%
- 3Y*
- -40.57%
- 5Y*
- -30.61%
- 10Y*
- -44.72%
BNKD
- 1D
- -2.15%
- 1M
- -25.95%
- YTD
- -38.75%
- 6M
- -36.05%
- 1Y
- -71.32%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
FAZ vs. BNKD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 1.40% | -21.42% |
BNKD MicroSectors U.S. Big Banks Index -3X Inverse Leveraged ETNs | -38.75% | -59.47% |
Correlation
The correlation between FAZ and BNKD is 0.86, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.86 |
Correlation (All Time) Calculated using the full available price history since Feb 20, 2025 | 0.87 |
The correlation between FAZ and BNKD has been stable across timeframes, ranging from 0.86 to 0.87 - a consistent structural relationship.
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Return for Risk
FAZ vs. BNKD — Risk / Return Rank
FAZ
BNKD
FAZ vs. BNKD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Financial Bear 3X Shares (FAZ) and MicroSectors U.S. Big Banks Index -3X Inverse Leveraged ETNs (BNKD). 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.
| FAZ | BNKD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.82 | ||
| Sortino ratioReturn per unit of downside risk | +2.17 | ||
| Omega ratioGain probability vs. loss probability | 0.96 | 0.74 | +0.23 |
| Calmar ratioReturn relative to maximum drawdown | -0.56 | -1.02 | +0.46 |
| Martin ratioReturn relative to average drawdown | -1.26 | -1.61 | +0.35 |
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Drawdowns
FAZ vs. BNKD - Drawdown Comparison
The maximum FAZ drawdown since its inception was -100.00%, which is greater than BNKD's maximum drawdown of -87.96%. Use the drawdown chart below to compare losses from any high point for FAZ and BNKD.
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Drawdown Indicators
| FAZ | BNKD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -87.96% | -12.04% |
Max Drawdown (1Y)Largest decline over 1 year | -31.57% | -69.98% | +38.41% |
Max Drawdown (3Y)Largest decline over 3 years | -83.61% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -87.53% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -99.78% | — | — |
Current DrawdownCurrent decline from peak | -100.00% | -87.96% | -12.04% |
Average DrawdownAverage peak-to-trough decline | -99.12% | -64.69% | -34.43% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 14.64% | 46.47% | -31.83% |
Volatility
FAZ vs. BNKD - Volatility Comparison
The current volatility for Direxion Daily Financial Bear 3X Shares (FAZ) is 12.48%, while MicroSectors U.S. Big Banks Index -3X Inverse Leveraged ETNs (BNKD) has a volatility of 16.87%. This indicates that FAZ experiences smaller price fluctuations and is considered to be less risky than BNKD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAZ | BNKD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.48% | 16.87% | -4.39% |
Volatility (6M)Calculated over the trailing 6-month period | 33.25% | 46.81% | -13.56% |
Volatility (1Y)Calculated over the trailing 1-year period | 43.64% | 58.19% | -14.55% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 55.67% | 74.00% | -18.33% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 61.93% | 74.00% | -12.07% |
FAZ vs. BNKD - Expense Ratio Comparison
FAZ has a 1.07% expense ratio, which is higher than BNKD's 0.95% expense ratio.
Dividends
FAZ vs. BNKD - Dividend Comparison
FAZ's dividend yield for the trailing twelve months is around 3.35%, while BNKD has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
BNKD MicroSectors U.S. Big Banks Index -3X Inverse Leveraged ETNs | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
FAZ Direxion Daily Financial Bear 3X Shares | 3.35% | 5.07% | 7.34% | 4.88% | 0.00% | 0.00% | 0.62% | 1.63% | 0.56% |
Frequently Asked Questions
FAZ and BNKD have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BNKD has higher volatility (16.87%) compared to FAZ (12.48%). In terms of maximum drawdown, FAZ dropped -100.00% vs BNKD's -87.96%.
On 1-year performance, FAZ leads with -17.74% vs -71.32% for BNKD. On fees, BNKD is cheaper at 0.95% per year. On volatility, FAZ has been the lower-risk option at 12.48%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, FAZ has performed better with a -17.74% return vs -71.32%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BNKD is cheaper with a 0.95% expense ratio, compared with 1.07% for FAZ.
FAZ has the higher dividend yield at 3.35%, compared with 0.00% for BNKD.
FAZ is categorized as Leveraged Equities, while BNKD is Inverse Equities. FAZ tracks Russell 1000 Financial Services Index (-300%), while BNKD tracks Solactive MicroSectors U.S. Big Banks Index (-300%). They also come from different issuers: Direxion and REX. Their fees differ too: 1.07% for FAZ and 0.95% for BNKD.
FAZ currently has the higher Sharpe Ratio (-0.41 vs -1.23), 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.
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