FAZ vs. IFED
FAZ (Direxion Daily Financial Bear 3X Shares) and IFED (ETRACS IFED Invest with the Fed TR Index ETN) are both Leveraged Equities funds - FAZ tracks the Russell 1000 Financial Services Index (-300%) while IFED tracks the IFED Large-Cap US Equity Index - Benchmark TR Gross. Both are passively managed. Over the past 3 years, FAZ returned -40.27%/yr vs 15.90%/yr for IFED. At a correlation of -0.76, they often move in opposite directions. FAZ charges 1.07%/yr vs 0.45%/yr for IFED.
Performance
FAZ vs. IFED - Performance Comparison
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Returns By Period
In the year-to-date period, FAZ achieves a 2.92% return, which is significantly higher than IFED's -4.64% return.
FAZ
- 1D
- 0.85%
- 1M
- -10.71%
- YTD
- 2.92%
- 6M
- 8.72%
- 1Y
- -12.45%
- 3Y*
- -40.27%
- 5Y*
- -29.87%
- 10Y*
- -44.64%
IFED
- 1D
- -1.62%
- 1M
- 0.81%
- YTD
- -4.64%
- 6M
- -5.76%
- 1Y
- -0.20%
- 3Y*
- 15.90%
- 5Y*
- —
- 10Y*
- —
FAZ vs. IFED - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 2.92% | -37.21% | -51.01% | -26.67% | 1.16% | -19.98% |
IFED ETRACS IFED Invest with the Fed TR Index ETN | -4.64% | 15.02% | 23.04% | 20.78% | -1.46% | 8.46% |
Correlation
The correlation between FAZ and IFED is -0.55, 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 | -0.55 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.63 |
Correlation (All Time) Calculated using the full available price history since Sep 15, 2021 | -0.76 |
Over the past year, the inverse relationship between FAZ and IFED has weakened: their correlation has moved from -0.76 to -0.55, meaning they move in opposite directions less often than they have historically.
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Return for Risk
FAZ vs. IFED — Risk / Return Rank
FAZ
IFED
FAZ vs. IFED - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Financial Bear 3X Shares (FAZ) and ETRACS IFED Invest with the Fed TR Index ETN (IFED). 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 | IFED | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.28 | ||
| Sortino ratioReturn per unit of downside risk | -0.24 | ||
| Omega ratioGain probability vs. loss probability | 0.98 | 1.01 | -0.03 |
| Calmar ratioReturn relative to maximum drawdown | -0.40 | -0.01 | -0.38 |
| Martin ratioReturn relative to average drawdown | -0.88 | -0.03 | -0.84 |
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Drawdowns
FAZ vs. IFED - Drawdown Comparison
The maximum FAZ drawdown since its inception was -100.00%, which is greater than IFED's maximum drawdown of -22.36%. Use the drawdown chart below to compare losses from any high point for FAZ and IFED.
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Drawdown Indicators
| FAZ | IFED | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -22.36% | -77.64% |
Max Drawdown (1Y)Largest decline over 1 year | -31.57% | -14.65% | -16.92% |
Max Drawdown (3Y)Largest decline over 3 years | -83.61% | -22.36% | -61.25% |
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% | -6.60% | -93.40% |
Average DrawdownAverage peak-to-trough decline | -99.12% | -5.83% | -93.29% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 14.19% | 5.90% | +8.29% |
Volatility
FAZ vs. IFED - Volatility Comparison
Direxion Daily Financial Bear 3X Shares (FAZ) has a higher volatility of 12.52% compared to ETRACS IFED Invest with the Fed TR Index ETN (IFED) at 6.86%. This indicates that FAZ's price experiences larger fluctuations and is considered to be riskier than IFED based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAZ | IFED | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.52% | 6.86% | +5.66% |
Volatility (6M)Calculated over the trailing 6-month period | 33.19% | 13.89% | +19.30% |
Volatility (1Y)Calculated over the trailing 1-year period | 43.47% | 16.90% | +26.57% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 55.65% | 19.92% | +35.73% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 61.92% | 19.92% | +42.00% |
FAZ vs. IFED - Expense Ratio Comparison
FAZ has a 1.07% expense ratio, which is higher than IFED's 0.45% expense ratio.
Dividends
FAZ vs. IFED - Dividend Comparison
FAZ's dividend yield for the trailing twelve months is around 3.01%, while IFED has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 3.01% | 5.07% | 7.34% | 4.88% | 0.00% | 0.00% | 0.62% | 1.63% | 0.56% |
IFED ETRACS IFED Invest with the Fed TR Index ETN | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
FAZ and IFED have a correlation of -0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAZ has higher volatility (12.52%) compared to IFED (6.86%). In terms of maximum drawdown, FAZ dropped -100.00% vs IFED's -22.36%.
On 3-year performance, IFED leads with 15.90% vs -40.27% for FAZ. On fees, IFED is cheaper at 0.45% per year. On volatility, IFED has been the lower-risk option at 6.86%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, IFED has performed better with a 15.90% return vs -40.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IFED is cheaper with a 0.45% expense ratio, compared with 1.07% for FAZ.
FAZ has the higher dividend yield at 3.01%, compared with 0.00% for IFED.
FAZ tracks Russell 1000 Financial Services Index (-300%), while IFED tracks IFED Large-Cap US Equity Index - Benchmark TR Gross. They also come from different issuers: Direxion and UBS. Their fees differ too: 1.07% for FAZ and 0.45% for IFED.
IFED currently has the higher Sharpe Ratio (-0.01 vs -0.29), 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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