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 -44.72%/yr vs -7.18%/yr for LABU. At a correlation of -0.45, they often move in opposite directions. FAZ charges 1.07%/yr vs 1.12%/yr for LABU.
Performance
FAZ vs. LABU - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, FAZ achieves a 1.40% return, which is significantly lower than LABU's 47.57% return. Over the past 10 years, FAZ has underperformed LABU with an annualized return of -44.72%, while LABU has yielded a comparatively higher -7.18% annualized return.
FAZ
- 1D
- -1.75%
- 1M
- -12.03%
- YTD
- 1.40%
- 6M
- 5.46%
- 1Y
- -17.74%
- 3Y*
- -40.57%
- 5Y*
- -30.61%
- 10Y*
- -44.72%
LABU
- 1D
- 2.26%
- 1M
- 34.26%
- YTD
- 47.57%
- 6M
- 36.98%
- 1Y
- 324.35%
- 3Y*
- 23.36%
- 5Y*
- -31.01%
- 10Y*
- -7.18%
FAZ vs. LABU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 1.40% | -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 | 47.57% | 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 -0.36, 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 | -0.36 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.42 |
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 28, 2015 | -0.45 |
The correlation between FAZ and LABU shifts across timeframes, from -0.46 (5 years) to -0.36 (1 year), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
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 | -4.56 | ||
| Sortino ratioReturn per unit of downside risk | -4.01 | ||
| Omega ratioGain probability vs. loss probability | 0.96 | 1.44 | -0.48 |
| Calmar ratioReturn relative to maximum drawdown | -0.56 | 10.64 | -11.21 |
| Martin ratioReturn relative to average drawdown | -1.26 | 29.90 | -31.16 |
Loading charts...
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.
Loading charts...
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 | -31.57% | -30.70% | -0.87% |
Max Drawdown (3Y)Largest decline over 3 years | -83.61% | -78.30% | -5.31% |
Max Drawdown (5Y)Largest decline over 5 years | -87.53% | -97.59% | +10.06% |
Max Drawdown (10Y)Largest decline over 10 years | -99.78% | -98.96% | -0.82% |
Current DrawdownCurrent decline from peak | -100.00% | -94.80% | -5.20% |
Average DrawdownAverage peak-to-trough decline | -99.12% | -81.72% | -17.40% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 14.64% | 10.91% | +3.73% |
Volatility
FAZ vs. LABU - Volatility Comparison
The current volatility for Direxion Daily Financial Bear 3X Shares (FAZ) is 12.48%, while Direxion Daily S&P Biotech Bull 3x Shares (LABU) has a volatility of 29.76%. 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.
Loading charts...
Volatility by Period
| FAZ | LABU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.48% | 29.76% | -17.28% |
Volatility (6M)Calculated over the trailing 6-month period | 33.25% | 63.07% | -29.82% |
Volatility (1Y)Calculated over the trailing 1-year period | 43.64% | 78.78% | -35.14% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 55.67% | 95.94% | -40.27% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 61.93% | 95.44% | -33.51% |
FAZ vs. LABU - Expense Ratio Comparison
FAZ has a 1.07% expense ratio, which is lower than LABU's 1.12% expense ratio.
Dividends
FAZ vs. LABU - Dividend Comparison
FAZ's dividend yield for the trailing twelve months is around 3.35%, more than LABU's 0.52% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 3.35% | 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 | 0.52% | 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 -0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LABU has higher volatility (29.76%) compared to FAZ (12.48%). In terms of maximum drawdown, FAZ dropped -100.00% vs LABU's -99.18%.
On 10-year performance, LABU leads with -7.18% vs -44.72% for FAZ. On fees, FAZ is cheaper at 1.07% per year. On volatility, FAZ has been the lower-risk option at 12.48%. 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 -7.18% return vs -44.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FAZ is cheaper with a 1.07% expense ratio, compared with 1.12% for LABU.
FAZ has the higher dividend yield at 3.35%, compared with 0.52% 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 1.12% for LABU.
LABU currently has the higher Sharpe Ratio (4.15 vs -0.41), 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.
Find the right allocation for FAZ and LABU
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer