FAZ vs. MUU

Last updated Jul 17, 2026

FAZ (Direxion Daily Financial Bear 3X Shares) and MUU (Direxion Daily MU Bull 2X Shares) are both Leveraged Equities funds from Direxion - FAZ tracks the Russell 1000 Financial Services Index (-300%) while MUU tracks the Micron Technology, Inc. (200% Daily). Both are passively managed. Over the past year, FAZ returned -24.30% vs 2599.25% for MUU. At a correlation of -0.14, they often move in opposite directions. FAZ charges 1.07%/yr vs 1.01%/yr for MUU.

Performance

FAZ vs. MUU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Financial Bear 3X Shares (FAZ) and Direxion Daily MU Bull 2X Shares (MUU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FAZ achieves a -12.56% return, which is significantly lower than MUU's 449.17% return.

FAZ

• 1D: -0.90%
• 1M: -12.87%
• 6M: -14.37%
• YTD: -12.56%
• 1Y: -24.30%
• 3Y*: -40.38%
• 5Y*: -32.90%
• 10Y*: -44.36%

MUU

• 1D: -12.02%
• 1M: -37.86%
• 6M: 305.92%
• YTD: 449.17%
• 1Y: 2,599.25%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

FAZ vs. MUU - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FAZ Direxion Daily Financial Bear 3X Shares	-12.56%	-37.21%	-16.51%
MUU Direxion Daily MU Bull 2X Shares	449.17%	599.03%	-40.91%

Correlation

The correlation between FAZ and MUU is -0.02, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.02
Correlation (All Time) Calculated using the full available price history since Oct 10, 2024	-0.14

The correlation between FAZ and MUU shifts across timeframes, from -0.14 (all time) to -0.02 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

FAZ vs. MUU — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FAZ

FAZ Risk / Return Rank: 4
FAZ Sharpe Ratio Rank: 5
FAZ Sortino Ratio Rank: 5
FAZ Omega Ratio Rank: 5
FAZ Calmar Ratio Rank: 4
FAZ Martin Ratio Rank: 1

MUU

MUU Risk / Return Rank: 98
MUU Sharpe Ratio Rank: 100
MUU Sortino Ratio Rank: 97
MUU Omega Ratio Rank: 95
MUU Calmar Ratio Rank: 99
MUU Martin Ratio Rank: 99

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FAZ vs. MUU - 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 MU Bull 2X Shares (MUU). 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	MUU	Difference
Sharpe ratio: Return per unit of total volatility	-0.56	17.30	-17.86
Sortino ratio: Return per unit of downside risk	-0.61	5.00	-5.61
Omega ratio: Gain probability vs. loss probability	0.93	1.63	-0.70
Calmar ratio: Return relative to maximum drawdown	-0.60	47.69	-48.29
Martin ratio: Return relative to average drawdown	-1.47	152.81	-154.29

FAZ vs. MUU - Sharpe Ratio Comparison

The current FAZ Sharpe Ratio is -0.56, which is lower than the MUU Sharpe Ratio of 17.30. The chart below compares the historical Sharpe Ratios of FAZ and MUU, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FAZ vs. MUU - Drawdown Comparison

The maximum FAZ drawdown since its inception was -100.00%, which is greater than MUU's maximum drawdown of -75.07%. Use the drawdown chart below to compare losses from any high point for FAZ and MUU.

Drawdown Indicators

	FAZ	MUU	Difference
Max Drawdown Largest peak-to-trough decline	-100.00%	-75.07%	-24.93%
Max Drawdown (1Y) Largest decline over 1 year	-40.37%	-55.25%	+14.88%
Max Drawdown (3Y) Largest decline over 3 years	-84.31%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-88.07%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-99.72%	—	—
Current Drawdown Current decline from peak	-100.00%	-55.25%	-44.75%
Average Drawdown Average peak-to-trough decline	-99.12%	-23.62%	-75.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	16.53%	17.31%	-0.78%

Volatility

FAZ vs. MUU - Volatility Comparison

The current volatility for Direxion Daily Financial Bear 3X Shares (FAZ) is 12.53%, while Direxion Daily MU Bull 2X Shares (MUU) has a volatility of 62.52%. This indicates that FAZ experiences smaller price fluctuations and is considered to be less risky than MUU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FAZ	MUU	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.53%	62.52%	-49.99%
Volatility (6M) Calculated over the trailing 6-month period	33.10%	125.23%	-92.13%
Volatility (1Y) Calculated over the trailing 1-year period	43.71%	152.52%	-108.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	55.53%	142.32%	-86.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	61.83%	142.32%	-80.49%

FAZ vs. MUU - Expense Ratio Comparison

FAZ has a 1.07% expense ratio, which is higher than MUU's 1.01% expense ratio.

Dividends

FAZ vs. MUU - Dividend Comparison

FAZ's dividend yield for the trailing twelve months is around 3.54%, more than MUU's 1.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
FAZ Direxion Daily Financial Bear 3X Shares	3.54%	5.07%	7.34%	4.88%	0.00%	0.00%	0.62%	1.63%	0.56%
MUU Direxion Daily MU Bull 2X Shares	1.24%	4.27%	0.31%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FAZ and MUU in my portfolio?

FAZ and MUU have a correlation of -0.02, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FAZ or MUU?

MUU has higher volatility (62.52%) compared to FAZ (12.53%). In terms of maximum drawdown, FAZ dropped -100.00% vs MUU's -75.07%.

Which ETF is better, FAZ or MUU?

On 1-year performance, MUU leads with 2599.25% vs -24.30% for FAZ. On fees, MUU is cheaper at 1.01% per year. On volatility, FAZ has been the lower-risk option at 12.53%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FAZ or MUU?

Over the 1-year period, MUU has performed better with a 2599.25% return vs -24.30%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FAZ or MUU?

MUU is cheaper with a 1.01% expense ratio, compared with 1.07% for FAZ.

Which ETF pays a higher dividend yield, FAZ or MUU?

FAZ has the higher dividend yield at 3.54%, compared with 1.24% for MUU.

What is the main difference between FAZ and MUU?

FAZ tracks Russell 1000 Financial Services Index (-300%), while MUU tracks Micron Technology, Inc. (200% Daily). Their fees differ too: 1.07% for FAZ and 1.01% for MUU.

Which has better risk-adjusted returns?

MUU currently has the higher Sharpe Ratio (17.30 vs -0.56), 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.