FAZ vs. LABU
FAZ (Direxion Daily Financial Bear 3X Shares) and LABU (Direxion Daily S&P Biotech Bull 3x Shares) are both Leveraged Equities funds from Direxion - FAZ tracks the Russell 1000 Financial Services Index (-300%) while LABU tracks the S&P Biotechnology Select Industry Index (300%). Both are passively managed. Over the past 10 years, FAZ returned -44.48%/yr vs -12.33%/yr for LABU. Their -0.44 correlation means they have often moved in opposite directions in the past. FAZ charges 1.07%/yr vs 0.96%/yr for LABU.
Performance
FAZ vs. LABU - 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 LABU's 42.67% return. Over the past 10 years, FAZ has underperformed LABU with an annualized return of -44.48%, while LABU has yielded a comparatively higher -12.33% 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%
LABU
- 1D
- -8.60%
- 1M
- -25.06%
- 6M
- 37.10%
- YTD
- 42.67%
- 1Y
- 272.05%
- 3Y*
- 25.64%
- 5Y*
- -26.71%
- 10Y*
- -12.33%
- ALL TIME*
- -20.62%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $19.80M | $17.81M | $19.33M | |
| $76.19M | $116.75M | $118.31M |
FAZ vs. LABU - 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% |
LABU Direxion Daily S&P Biotech Bull 3x Shares | 42.67% | 79.17% | -26.02% | -13.41% | -80.36% | -64.15% | 74.66% | 75.50% | -57.61% | 149.12% |
Correlation
The correlation between FAZ and LABU is -0.29, 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. | -0.29 |
Correlation (3Y) Balances recent behavior with more history. | -0.41 |
Correlation (5Y) Shows whether the relationship held over a longer period. | -0.45 |
Correlation (10Y) Provides a long-term view across more market conditions. | -0.43 |
Correlation (All Time) Calculated using the full available price history since May 28, 2015 | -0.44 |
The correlation between FAZ and LABU shifts across timeframes, from -0.45 (5 years) to -0.29 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
FAZ vs. LABU — Risk / Return Rank
FAZ
LABU
FAZ vs. LABU - 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 Bull 3x Shares (LABU). 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 | LABU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -3.99 | ||
| Sortino ratioReturn per unit of downside risk | -3.88 | ||
| Omega ratioGain probability vs. loss probability | 0.94 | 1.39 | -0.46 |
| Calmar ratioReturn relative to maximum drawdown | -0.56 | 9.00 | -9.56 |
| Martin ratioReturn relative to average drawdown | -1.29 | 23.05 | -24.34 |
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Drawdowns
FAZ vs. LABU - Drawdown Comparison
The maximum FAZ drawdown since its inception was -100.00%, roughly equal to the maximum LABU drawdown of -99.18%. Use the drawdown chart below to compare losses from any high point for FAZ and LABU.
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Drawdown Indicators
| FAZ | LABU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -99.18% | -0.82% |
Max Drawdown (1Y)Largest decline over 1 year | -42.80% | -30.70% | -12.10% |
Max Drawdown (3Y)Largest decline over 3 years | -84.95% | -78.30% | -6.65% |
Max Drawdown (5Y)Largest decline over 5 years | -88.55% | -97.36% | +8.81% |
Max Drawdown (10Y)Largest decline over 10 years | -99.72% | -98.96% | -0.76% |
Current DrawdownCurrent decline from peak | -100.00% | -94.97% | -5.03% |
Average DrawdownAverage peak-to-trough decline | -99.12% | -81.83% | -17.29% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 18.45% | 11.97% | +6.48% |
Volatility
FAZ vs. LABU - Volatility Comparison
The current volatility for Direxion Daily Financial Bear 3X Shares (FAZ) is 11.94%, while Direxion Daily S&P Biotech Bull 3x Shares (LABU) has a volatility of 24.69%. This indicates that FAZ experiences smaller price fluctuations and is considered to be less risky than LABU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAZ | LABU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 11.94% | 24.69% | -12.75% |
Volatility (6M)Calculated over the trailing 6-month period | 32.77% | 63.73% | -30.96% |
Volatility (1Y)Calculated over the trailing 1-year period | 44.05% | 80.28% | -36.23% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 55.31% | 96.01% | -40.70% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 61.87% | 95.22% | -33.35% |
FAZ vs. LABU - Expense Ratio Comparison
FAZ has a 1.07% expense ratio, which is higher than LABU's 0.96% expense ratio.
Dividends
FAZ vs. LABU - Dividend Comparison
FAZ's dividend yield for the trailing twelve months is around 3.57%, more than LABU's 0.45% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
LABU Direxion Daily S&P Biotech Bull 3x Shares | 0.45% | 0.84% | 0.35% | 0.35% | 0.00% | 0.00% | 0.00% | 0.28% | 0.64% | 0.17% |
Frequently Asked Questions
FAZ and LABU have a correlation of -0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LABU has higher volatility (24.69%) compared to FAZ (11.94%). In terms of maximum drawdown, FAZ dropped -100.00% vs LABU's -99.18%.
On 10-year performance, LABU leads with -12.33% vs -44.48% for FAZ. On fees, LABU is cheaper at 0.96% per year. On volatility, FAZ has been the lower-risk option at 11.94%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, LABU has performed better with a -12.33% return vs -44.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
LABU is cheaper with a 0.96% expense ratio, compared with 1.07% for FAZ.
FAZ has the higher dividend yield at 3.57%, compared with 0.45% for LABU.
FAZ tracks Russell 1000 Financial Services Index (-300%), while LABU tracks S&P Biotechnology Select Industry Index (300%). Their fees differ too: 1.07% for FAZ and 0.96% for LABU.
LABU currently has the higher Sharpe Ratio (3.45 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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