FAZ vs. KRE
FAZ (Direxion Daily Financial Bear 3X Shares) and KRE (SPDR S&P Regional Banking ETF) are both exchange-traded funds - FAZ is a Leveraged Equities fund tracking the Russell 1000 Financial Services Index (-300%), while KRE is a Financials Equities fund tracking the S&P Regional Banks Select Industry Index. Both are passively managed. Over the past 10 years, FAZ returned -44.22%/yr vs 9.13%/yr for KRE. At a correlation of -0.82, they often move in opposite directions. FAZ charges 1.07%/yr vs 0.35%/yr for KRE.
Performance
FAZ vs. KRE - Performance Comparison
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Returns By Period
In the year-to-date period, FAZ achieves a -9.37% return, which is significantly lower than KRE's 17.26% return. Over the past 10 years, FAZ has underperformed KRE with an annualized return of -44.22%, while KRE has yielded a comparatively higher 9.13% annualized return.
FAZ
- 1D
- -1.91%
- 1M
- -14.72%
- 6M
- -6.80%
- YTD
- -9.37%
- 1Y
- -20.83%
- 3Y*
- -40.21%
- 5Y*
- -32.04%
- 10Y*
- -44.22%
KRE
- 1D
- 0.13%
- 1M
- 2.93%
- 6M
- 13.97%
- YTD
- 17.26%
- 1Y
- 22.35%
- 3Y*
- 23.74%
- 5Y*
- 6.39%
- 10Y*
- 9.13%
FAZ vs. KRE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | -9.37% | -37.21% | -51.01% | -26.67% | 1.16% | -67.05% | -73.90% | -58.62% | 16.84% | -46.18% |
KRE SPDR S&P Regional Banking ETF | 17.26% | 10.21% | 18.58% | -7.61% | -15.08% | 39.29% | -7.43% | 27.44% | -18.81% | 7.49% |
Correlation
The correlation between FAZ and KRE is -0.68, 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 | -0.68 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.73 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.79 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.81 |
Correlation (All Time) Calculated using the full available price history since Nov 19, 2008 | -0.82 |
The correlation between FAZ and KRE shifts across timeframes, from -0.82 (all time) to -0.68 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
FAZ vs. KRE — Risk / Return Rank
FAZ
KRE
FAZ vs. KRE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Financial Bear 3X Shares (FAZ) and SPDR S&P Regional Banking ETF (KRE). 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 | KRE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.45 | ||
| Sortino ratioReturn per unit of downside risk | -1.89 | ||
| Omega ratioGain probability vs. loss probability | 0.95 | 1.19 | -0.24 |
| Calmar ratioReturn relative to maximum drawdown | -0.54 | 1.50 | -2.04 |
| Martin ratioReturn relative to average drawdown | -1.31 | 3.89 | -5.20 |
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Drawdowns
FAZ vs. KRE - Drawdown Comparison
The maximum FAZ drawdown since its inception was -100.00%, which is greater than KRE's maximum drawdown of -68.54%. Use the drawdown chart below to compare losses from any high point for FAZ and KRE.
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Drawdown Indicators
| FAZ | KRE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -68.54% | -31.46% |
Max Drawdown (1Y)Largest decline over 1 year | -38.56% | -14.95% | -23.61% |
Max Drawdown (3Y)Largest decline over 3 years | -83.83% | -28.20% | -55.63% |
Max Drawdown (5Y)Largest decline over 5 years | -87.70% | -52.69% | -35.01% |
Max Drawdown (10Y)Largest decline over 10 years | -99.71% | -54.92% | -44.79% |
Current DrawdownCurrent decline from peak | -100.00% | -1.39% | -98.61% |
Average DrawdownAverage peak-to-trough decline | -99.12% | -21.80% | -77.32% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 15.97% | 5.76% | +10.21% |
Volatility
FAZ vs. KRE - Volatility Comparison
Direxion Daily Financial Bear 3X Shares (FAZ) has a higher volatility of 12.94% compared to SPDR S&P Regional Banking ETF (KRE) at 5.64%. This indicates that FAZ's price experiences larger fluctuations and is considered to be riskier than KRE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAZ | KRE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.94% | 5.64% | +7.30% |
Volatility (6M)Calculated over the trailing 6-month period | 33.63% | 16.21% | +17.42% |
Volatility (1Y)Calculated over the trailing 1-year period | 44.06% | 23.12% | +20.94% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 55.56% | 29.74% | +25.82% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 61.85% | 31.76% | +30.09% |
FAZ vs. KRE - Expense Ratio Comparison
FAZ has a 1.07% expense ratio, which is higher than KRE's 0.35% expense ratio.
Dividends
FAZ vs. KRE - Dividend Comparison
FAZ's dividend yield for the trailing twelve months is around 3.41%, more than KRE's 2.13% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 3.41% | 5.07% | 7.34% | 4.88% | 0.00% | 0.00% | 0.62% | 1.63% | 0.56% | 0.00% | 0.00% | 0.00% |
KRE SPDR S&P Regional Banking ETF | 2.13% | 2.45% | 2.59% | 2.99% | 2.51% | 1.97% | 2.78% | 2.21% | 2.48% | 1.40% | 1.40% | 1.80% |
Frequently Asked Questions
FAZ and KRE have a correlation of -0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAZ has higher volatility (12.94%) compared to KRE (5.64%). In terms of maximum drawdown, FAZ dropped -100.00% vs KRE's -68.54%.
On 10-year performance, KRE leads with 9.13% vs -44.22% for FAZ. On fees, KRE is cheaper at 0.35% per year. On volatility, KRE has been the lower-risk option at 5.64%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, KRE has performed better with a 9.13% return vs -44.22%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
KRE is cheaper with a 0.35% expense ratio, compared with 1.07% for FAZ.
FAZ has the higher dividend yield at 3.41%, compared with 2.13% for KRE.
FAZ is categorized as Leveraged Equities, while KRE is Financials Equities. FAZ tracks Russell 1000 Financial Services Index (-300%), while KRE tracks S&P Regional Banks Select Industry Index. They also come from different issuers: Direxion and State Street. Their fees differ too: 1.07% for FAZ and 0.35% for KRE.
KRE currently has the higher Sharpe Ratio (0.97 vs -0.48), 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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