FAZ vs. ERX
FAZ (Direxion Daily Financial Bear 3X Shares) and ERX (Direxion Daily Energy Bull 2X Shares) are both Leveraged Equities funds from Direxion - FAZ tracks the Russell 1000 Financial Services Index (-300%) while ERX tracks the Energy Select Sector Index (300%). Both are passively managed. Over the past 10 years, FAZ returned -44.72%/yr vs -10.18%/yr for ERX. At a correlation of -0.59, they often move in opposite directions. FAZ charges 1.07%/yr vs 1.09%/yr for ERX.
Performance
FAZ vs. ERX - Performance Comparison
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Returns By Period
In the year-to-date period, FAZ achieves a 1.40% return, which is significantly lower than ERX's 44.06% return. Over the past 10 years, FAZ has underperformed ERX with an annualized return of -44.72%, while ERX has yielded a comparatively higher -10.18% annualized 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%
ERX
- 1D
- 1.09%
- 1M
- -16.23%
- YTD
- 44.06%
- 6M
- 45.10%
- 1Y
- 53.56%
- 3Y*
- 19.85%
- 5Y*
- 25.26%
- 10Y*
- -10.18%
FAZ vs. ERX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 1.40% | -37.21% | -51.01% | -26.67% | 1.16% | -67.05% | -73.90% | -58.62% | 16.84% | -46.18% |
ERX Direxion Daily Energy Bull 2X Shares | 44.06% | 2.79% | 1.09% | -12.26% | 130.58% | 111.91% | -91.60% | 17.13% | -55.94% | -11.60% |
Correlation
The correlation between FAZ and ERX is -0.01, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.01 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.29 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.41 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.51 |
Correlation (All Time) Calculated using the full available price history since Nov 19, 2008 | -0.59 |
Over the past year, the inverse relationship between FAZ and ERX has weakened: their correlation has moved from -0.59 to -0.01, meaning they move in opposite directions less often than they have historically.
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Return for Risk
FAZ vs. ERX — Risk / Return Rank
FAZ
ERX
FAZ vs. ERX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Financial Bear 3X Shares (FAZ) and Direxion Daily Energy Bull 2X Shares (ERX). 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 | ERX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.70 | ||
| Sortino ratioReturn per unit of downside risk | -2.12 | ||
| Omega ratioGain probability vs. loss probability | 0.96 | 1.22 | -0.25 |
| Calmar ratioReturn relative to maximum drawdown | -0.56 | 1.89 | -2.45 |
| Martin ratioReturn relative to average drawdown | -1.26 | 5.50 | -6.76 |
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Drawdowns
FAZ vs. ERX - Drawdown Comparison
The maximum FAZ drawdown since its inception was -100.00%, roughly equal to the maximum ERX drawdown of -99.54%. Use the drawdown chart below to compare losses from any high point for FAZ and ERX.
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Drawdown Indicators
| FAZ | ERX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -99.54% | -0.46% |
Max Drawdown (1Y)Largest decline over 1 year | -31.57% | -28.49% | -3.08% |
Max Drawdown (3Y)Largest decline over 3 years | -83.61% | -42.34% | -41.27% |
Max Drawdown (5Y)Largest decline over 5 years | -87.53% | -46.90% | -40.63% |
Max Drawdown (10Y)Largest decline over 10 years | -99.78% | -98.59% | -1.19% |
Current DrawdownCurrent decline from peak | -100.00% | -92.73% | -7.27% |
Average DrawdownAverage peak-to-trough decline | -99.12% | -67.09% | -32.03% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 14.64% | 9.77% | +4.87% |
Volatility
FAZ vs. ERX - Volatility Comparison
The current volatility for Direxion Daily Financial Bear 3X Shares (FAZ) is 12.48%, while Direxion Daily Energy Bull 2X Shares (ERX) has a volatility of 14.48%. This indicates that FAZ experiences smaller price fluctuations and is considered to be less risky than ERX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAZ | ERX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.48% | 14.48% | -2.00% |
Volatility (6M)Calculated over the trailing 6-month period | 33.25% | 34.00% | -0.75% |
Volatility (1Y)Calculated over the trailing 1-year period | 43.64% | 41.99% | +1.65% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 55.67% | 51.92% | +3.75% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 61.93% | 69.08% | -7.15% |
FAZ vs. ERX - Expense Ratio Comparison
FAZ has a 1.07% expense ratio, which is lower than ERX's 1.09% expense ratio.
Dividends
FAZ vs. ERX - Dividend Comparison
FAZ's dividend yield for the trailing twelve months is around 3.35%, more than ERX's 1.86% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
ERX Direxion Daily Energy Bull 2X Shares | 1.86% | 2.54% | 2.94% | 3.17% | 2.23% | 2.16% | 2.35% | 1.56% | 3.10% | 0.85% |
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% | 0.00% |
Frequently Asked Questions
FAZ and ERX have a correlation of -0.01, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ERX has higher volatility (14.48%) compared to FAZ (12.48%). In terms of maximum drawdown, FAZ dropped -100.00% vs ERX's -99.54%.
On 10-year performance, ERX leads with -10.18% vs -44.72% for FAZ. On fees, FAZ is cheaper at 1.07% 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 10-year period, ERX has performed better with a -10.18% return vs -44.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FAZ is cheaper with a 1.07% expense ratio, compared with 1.09% for ERX.
FAZ has the higher dividend yield at 3.35%, compared with 1.86% for ERX.
FAZ tracks Russell 1000 Financial Services Index (-300%), while ERX tracks Energy Select Sector Index (300%). Their fees differ too: 1.07% for FAZ and 1.09% for ERX.
ERX currently has the higher Sharpe Ratio (1.29 vs -0.41), 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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