FAZ vs. LABD
FAZ (Direxion Daily Financial Bear 3X Shares) and LABD (Direxion Daily S&P Biotech Bear 3x Shares) are both Leveraged Equities funds from Direxion - FAZ tracks the Russell 1000 Financial Services Index (-300%) while LABD tracks the S&P Biotechnology Select Industry Index (-300%). Both are passively managed. Over the past 10 years, FAZ returned -43.00%/yr vs -55.90%/yr for LABD. At a 0.45 correlation, their price movements are largely independent. FAZ charges 1.07%/yr vs 1.06%/yr for LABD.
Performance
FAZ vs. LABD - Performance Comparison
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Returns By Period
In the year-to-date period, FAZ achieves a 18.57% return, which is significantly higher than LABD's -26.35% return. Over the past 10 years, FAZ has outperformed LABD with an annualized return of -43.00%, while LABD has yielded a comparatively lower -55.90% annualized return.
FAZ
- 1D
- -0.15%
- 1M
- 3.55%
- YTD
- 18.57%
- 6M
- 6.21%
- 1Y
- -3.61%
- 3Y*
- -37.43%
- 5Y*
- -26.62%
- 10Y*
- -43.00%
LABD
- 1D
- 13.36%
- 1M
- 2.25%
- YTD
- -26.35%
- 6M
- -33.91%
- 1Y
- -80.10%
- 3Y*
- -49.03%
- 5Y*
- -40.90%
- 10Y*
- -55.90%
FAZ vs. LABD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 18.57% | -37.21% | -51.01% | -26.67% | 1.16% | -67.05% | -73.90% | -58.62% | 16.84% | -46.18% |
LABD Direxion Daily S&P Biotech Bear 3x Shares | -26.35% | -70.07% | -21.43% | -41.77% | -32.68% | 1.86% | -89.75% | -70.80% | -6.26% | -75.67% |
Correlation
The correlation between FAZ and LABD is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.37 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.43 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.46 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.44 |
Correlation (All Time) Calculated using the full available price history since May 29, 2015 | 0.45 |
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Return for Risk
FAZ vs. LABD — Risk / Return Rank
FAZ
LABD
FAZ vs. LABD - 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 S&P Biotech Bear 3x Shares (LABD). 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.
| FAZ | LABD | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | -0.08 | -1.06 | +0.98 |
Sortino ratioReturn per unit of downside risk | 0.19 | -2.21 | +2.40 |
Omega ratioGain probability vs. loss probability | 1.02 | 0.75 | +0.27 |
Calmar ratioReturn relative to maximum drawdown | -0.13 | -0.98 | +0.85 |
Martin ratioReturn relative to average drawdown | -0.23 | -1.32 | +1.09 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| FAZ | LABD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -0.08 | -1.06 | +0.98 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.48 | -0.43 | -0.05 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.69 | -0.58 | -0.11 |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.72 | -0.54 | -0.18 |
Drawdowns
FAZ vs. LABD - Drawdown Comparison
The maximum FAZ drawdown since its inception was -100.00%, roughly equal to the maximum LABD drawdown of -99.99%. Use the drawdown chart below to compare losses from any high point for FAZ and LABD.
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Drawdown Indicators
| FAZ | LABD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -99.99% | -0.01% |
Max Drawdown (1Y)Largest decline over 1 year | -30.20% | -83.21% | +53.01% |
Max Drawdown (3Y)Largest decline over 3 years | -83.61% | -95.31% | +11.70% |
Max Drawdown (5Y)Largest decline over 5 years | -87.53% | -98.24% | +10.71% |
Max Drawdown (10Y)Largest decline over 10 years | -99.78% | -99.98% | +0.20% |
Current DrawdownCurrent decline from peak | -100.00% | -99.99% | -0.01% |
Average DrawdownAverage peak-to-trough decline | -99.14% | -90.92% | -8.22% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 16.55% | 62.04% | -45.49% |
Volatility
FAZ vs. LABD - Volatility Comparison
The current volatility for Direxion Daily Financial Bear 3X Shares (FAZ) is 8.85%, while Direxion Daily S&P Biotech Bear 3x Shares (LABD) has a volatility of 28.02%. This indicates that FAZ experiences smaller price fluctuations and is considered to be less risky than LABD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAZ | LABD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.85% | 28.02% | -19.17% |
Volatility (6M)Calculated over the trailing 6-month period | 32.10% | 61.98% | -29.88% |
Volatility (1Y)Calculated over the trailing 1-year period | 42.95% | 76.01% | -33.06% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 55.81% | 96.24% | -40.43% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 62.07% | 95.94% | -33.87% |
FAZ vs. LABD - Expense Ratio Comparison
FAZ has a 1.07% expense ratio, which is higher than LABD's 1.06% expense ratio.
Dividends
FAZ vs. LABD - Dividend Comparison
FAZ's dividend yield for the trailing twelve months is around 2.87%, less than LABD's 6.14% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 2.87% | 5.07% | 7.34% | 4.88% | 0.00% | 0.00% | 0.62% | 1.63% | 0.56% |
LABD Direxion Daily S&P Biotech Bear 3x Shares | 6.14% | 6.67% | 4.68% | 6.13% | 0.53% | 0.00% | 3.94% | 1.75% | 0.81% |
Frequently Asked Questions
FAZ and LABD have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LABD has higher volatility (28.02%) compared to FAZ (8.85%). In terms of maximum drawdown, FAZ dropped -100.00% vs LABD's -99.99%.
On 10-year performance, FAZ leads with -43.00% vs -55.90% for LABD. On fees, LABD is cheaper at 1.06% per year. On volatility, FAZ has been the lower-risk option at 8.85%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FAZ has performed better with a -43.00% return vs -55.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
LABD is cheaper with a 1.06% expense ratio, compared with 1.07% for FAZ.
LABD has the higher dividend yield at 6.14%, compared with 2.87% for FAZ.
FAZ tracks Russell 1000 Financial Services Index (-300%), while LABD tracks S&P Biotechnology Select Industry Index (-300%). Their fees differ too: 1.07% for FAZ and 1.06% for LABD.
FAZ currently has the higher Sharpe Ratio (-0.08 vs -1.06), 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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