FAZ vs. KBWB
FAZ (Direxion Daily Financial Bear 3X Shares) and KBWB (Invesco KBW Bank ETF) are both exchange-traded funds - FAZ is a Leveraged Equities fund tracking the Russell 1000 Financial Services Index (-300%), while KBWB is a Financials Equities fund tracking the KBW Nasdaq Bank Index. Both are passively managed. Over the past 10 years, FAZ returned -44.48%/yr vs 13.69%/yr for KBWB. Their -0.90 correlation means they have often moved in opposite directions in the past. FAZ charges 1.07%/yr vs 0.35%/yr for KBWB.
Performance
FAZ vs. KBWB - Performance Comparison
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Returns By Period
In the year-to-date period, FAZ achieves a -13.28% return, which is significantly lower than KBWB's 15.29% return. Over the past 10 years, FAZ has underperformed KBWB with an annualized return of -44.48%, while KBWB has yielded a comparatively higher 13.69% annualized return.
FAZ
- 1D
- 0.43%
- 1M
- -6.62%
- 6M
- -19.32%
- YTD
- -13.28%
- 1Y
- -27.65%
- 3Y*
- -39.34%
- 5Y*
- -32.28%
- 10Y*
- -44.48%
- ALL TIME*
- -53.80%
KBWB
- 1D
- 0.20%
- 1M
- 1.73%
- 6M
- 12.74%
- YTD
- 15.29%
- 1Y
- 36.87%
- 3Y*
- 31.95%
- 5Y*
- 11.96%
- 10Y*
- 13.69%
- ALL TIME*
- 13.87%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $19.80M | $17.81M | $19.33M | |
| $147.63M | $184.17M | $155.76M |
FAZ vs. KBWB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | -13.28% | -37.21% | -51.01% | -26.67% | 1.16% | -67.05% | -73.90% | -58.62% | 16.84% | -46.18% |
KBWB Invesco KBW Bank ETF | 15.29% | 32.05% | 36.73% | -1.18% | -21.68% | 37.72% | -10.46% | 35.90% | -18.30% | 18.11% |
Correlation
The correlation between FAZ and KBWB is -0.84, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | -0.84 |
Correlation (3Y) Balances recent behavior with more history. | -0.86 |
Correlation (5Y) Shows whether the relationship held over a longer period. | -0.90 |
Correlation (10Y) Provides a long-term view across more market conditions. | -0.90 |
Correlation (All Time) Calculated using the full available price history since Nov 1, 2011 | -0.90 |
The correlation between FAZ and KBWB has been stable across timeframes, ranging from -0.90 to -0.84 - a consistent structural relationship.
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Return for Risk
FAZ vs. KBWB — Risk / Return Rank
FAZ
KBWB
FAZ vs. KBWB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Financial Bear 3X Shares (FAZ) and Invesco KBW Bank ETF (KBWB). 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 | KBWB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.18 | ||
| Sortino ratioReturn per unit of downside risk | -2.78 | ||
| Omega ratioGain probability vs. loss probability | 0.94 | 1.29 | -0.35 |
| Calmar ratioReturn relative to maximum drawdown | -0.56 | 2.06 | -2.62 |
| Martin ratioReturn relative to average drawdown | -1.29 | 6.52 | -7.81 |
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Drawdowns
FAZ vs. KBWB - Drawdown Comparison
The maximum FAZ drawdown since its inception was -100.00%, which is greater than KBWB's maximum drawdown of -50.27%. Use the drawdown chart below to compare losses from any high point for FAZ and KBWB.
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Drawdown Indicators
| FAZ | KBWB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -50.27% | -49.73% |
Max Drawdown (1Y)Largest decline over 1 year | -42.80% | -16.38% | -26.42% |
Max Drawdown (3Y)Largest decline over 3 years | -84.95% | -25.43% | -59.52% |
Max Drawdown (5Y)Largest decline over 5 years | -88.55% | -49.31% | -39.24% |
Max Drawdown (10Y)Largest decline over 10 years | -99.72% | -50.27% | -49.45% |
Current DrawdownCurrent decline from peak | -100.00% | -2.41% | -97.59% |
Average DrawdownAverage peak-to-trough decline | -99.12% | -11.62% | -87.50% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 18.45% | 5.18% | +13.27% |
Volatility
FAZ vs. KBWB - Volatility Comparison
Direxion Daily Financial Bear 3X Shares (FAZ) has a higher volatility of 11.94% compared to Invesco KBW Bank ETF (KBWB) at 5.81%. This indicates that FAZ's price experiences larger fluctuations and is considered to be riskier than KBWB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAZ | KBWB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 11.94% | 5.81% | +6.13% |
Volatility (6M)Calculated over the trailing 6-month period | 32.77% | 15.94% | +16.83% |
Volatility (1Y)Calculated over the trailing 1-year period | 44.05% | 20.60% | +23.45% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 55.31% | 26.39% | +28.92% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 61.87% | 29.06% | +32.81% |
FAZ vs. KBWB - Expense Ratio Comparison
FAZ has a 1.07% expense ratio, which is higher than KBWB's 0.35% expense ratio.
Dividends
FAZ vs. KBWB - Dividend Comparison
FAZ's dividend yield for the trailing twelve months is around 3.57%, more than KBWB's 1.93% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 3.57% | 5.07% | 7.34% | 4.88% | 0.00% | 0.00% | 0.62% | 1.63% | 0.56% | 0.00% | 0.00% | 0.00% |
KBWB Invesco KBW Bank ETF | 1.93% | 2.04% | 2.46% | 3.20% | 3.05% | 2.13% | 2.62% | 2.38% | 2.54% | 1.35% | 1.53% | 1.53% |
Frequently Asked Questions
FAZ and KBWB have a correlation of -0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAZ has higher volatility (11.94%) compared to KBWB (5.81%). In terms of maximum drawdown, FAZ dropped -100.00% vs KBWB's -50.27%.
On 10-year performance, KBWB leads with 13.69% vs -44.48% for FAZ. On fees, KBWB is cheaper at 0.35% per year. On volatility, KBWB has been the lower-risk option at 5.81%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, KBWB has performed better with a 13.69% return vs -44.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
KBWB is cheaper with a 0.35% expense ratio, compared with 1.07% for FAZ.
FAZ has the higher dividend yield at 3.57%, compared with 1.93% for KBWB.
FAZ is categorized as Leveraged Equities, while KBWB is Financials Equities. FAZ tracks Russell 1000 Financial Services Index (-300%), while KBWB tracks KBW Nasdaq Bank Index. They also come from different issuers: Direxion and Invesco. Their fees differ too: 1.07% for FAZ and 0.35% for KBWB.
KBWB currently has the higher Sharpe Ratio (1.64 vs -0.54), 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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