PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
FAZ vs. QQQ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

FAZ vs. QQQ

Last updated Jun 4, 2026

FAZ (Direxion Daily Financial Bear 3X Shares) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - FAZ is a Leveraged Equities fund tracking the Russell 1000 Financial Services Index (-300%), while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, FAZ returned -42.81%/yr vs 21.94%/yr for QQQ. At a correlation of -0.65, they often move in opposite directions. FAZ charges 1.07%/yr vs 0.18%/yr for QQQ.

Performance

FAZ vs. QQQ - Performance Comparison

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

Loading charts...

Returns By Period

In the year-to-date period, FAZ achieves a 22.66% return, which is significantly higher than QQQ's 21.30% return. Over the past 10 years, FAZ has underperformed QQQ with an annualized return of -42.81%, while QQQ has yielded a comparatively higher 21.94% annualized return.

FAZ

1D
3.45%
1M
5.24%
YTD
22.66%
6M
14.22%
1Y
0.55%
3Y*
-36.72%
5Y*
-26.05%
10Y*
-42.81%

QQQ

1D
-0.26%
1M
10.60%
YTD
21.30%
6M
19.66%
1Y
41.82%
3Y*
28.78%
5Y*
17.97%
10Y*
21.94%
*Multi-year figures are annualized to reflect compound growth (CAGR)

FAZ vs. QQQ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
FAZ
Direxion Daily Financial Bear 3X Shares		22.66%-37.21%-51.01%-26.67%1.16%-67.05%-73.90%-58.62%16.84%-46.18%
QQQ
Invesco QQQ ETF		21.30%20.77%25.58%54.86%-32.58%27.42%48.62%38.96%-0.13%32.66%

Correlation

The correlation between FAZ and QQQ is -0.43, 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

-0.43

Correlation (3Y)
Calculated over the trailing 3-year period

-0.44

Correlation (5Y)
Calculated over the trailing 5-year period

-0.56

Correlation (10Y)
Calculated over the trailing 10-year period

-0.56

Correlation (All Time)
Calculated using the full available price history since Nov 20, 2008

-0.65

Over the past year, the inverse relationship between FAZ and QQQ has weakened: their correlation has moved from -0.65 to -0.43, meaning they move in opposite directions less often than they have historically.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Direxion Daily Financial Bear 3X Shares

Invesco QQQ ETF

Often compared with FAZ:
FAZ vs. FASFAZ vs. TZAFAZ vs. LABDFAZ vs. BNKDFAZ vs. LABUFAZ vs. SQQQFAZ vs. KRE
Often compared with QQQ:
QQQ vs. SPYQQQ vs. VOOQQQ vs. VGTQQQ vs. TQQQQQQ vs. SMHQQQ vs. QQQMQQQ vs. QQQI

Return for Risk

FAZ vs. QQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
FAZ
FAZ Risk / Return Rank: 99
Overall Rank
FAZ Sharpe Ratio Rank: 99
Sharpe Ratio Rank
FAZ Sortino Ratio Rank: 1010
Sortino Ratio Rank
FAZ Omega Ratio Rank: 1010
Omega Ratio Rank
FAZ Calmar Ratio Rank: 99
Calmar Ratio Rank
FAZ Martin Ratio Rank: 99
Martin Ratio Rank
QQQ
QQQ Risk / Return Rank: 7373
Overall Rank
QQQ Sharpe Ratio Rank: 7979
Sharpe Ratio Rank
QQQ Sortino Ratio Rank: 7575
Sortino Ratio Rank
QQQ Omega Ratio Rank: 7474
Omega Ratio Rank
QQQ Calmar Ratio Rank: 6969
Calmar Ratio Rank
QQQ Martin Ratio Rank: 7171
Martin Ratio Rank
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. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Financial Bear 3X Shares (FAZ) and Invesco QQQ ETF (QQQ). 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.

FAZQQQDifference

Sharpe ratio

Return per unit of total volatility

0.01

2.64

-2.62

Sortino ratio

Return per unit of downside risk

0.34

3.45

-3.10

Omega ratio

Gain probability vs. loss probability

1.04

1.45

-0.41

Calmar ratio

Return relative to maximum drawdown

0.02

3.51

-3.49

Martin ratio

Return relative to average drawdown

0.03

13.49

-13.46

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FAZ vs. QQQ - Sharpe Ratio Comparison

The current FAZ Sharpe Ratio is 0.01, which is lower than the QQQ Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of FAZ and QQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Loading charts...

Sharpe Ratios by Period

FAZQQQDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.01

2.64

-2.62

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.47

0.81

-1.28

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

-0.69

0.99

-1.68

Sharpe Ratio (All Time)

Calculated using the full available price history

-0.72

0.41

-1.13

Drawdowns

FAZ vs. QQQ - Drawdown Comparison

The maximum FAZ drawdown since its inception was -100.00%, which is greater than QQQ's maximum drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for FAZ and QQQ.

Loading charts...

Drawdown Indicators

FAZQQQDifference

Max Drawdown

Largest peak-to-trough decline

-100.00%

-82.97%

-17.03%

Max Drawdown (1Y)

Largest decline over 1 year

-30.20%

-11.96%

-18.24%

Max Drawdown (3Y)

Largest decline over 3 years

-83.61%

-22.77%

-60.84%

Max Drawdown (5Y)

Largest decline over 5 years

-87.53%

-35.12%

-52.41%

Max Drawdown (10Y)

Largest decline over 10 years

-99.78%

-35.12%

-64.66%

Current Drawdown

Current decline from peak

-100.00%

-0.26%

-99.74%

Average Drawdown

Average peak-to-trough decline

-99.14%

-32.79%

-66.35%

Ulcer Index

Depth and duration of drawdowns from previous peaks

16.58%

3.11%

+13.47%

Volatility

FAZ vs. QQQ - Volatility Comparison

Direxion Daily Financial Bear 3X Shares (FAZ) has a higher volatility of 9.30% compared to Invesco QQQ ETF (QQQ) at 4.49%. This indicates that FAZ's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

FAZQQQDifference

Volatility (1M)

Calculated over the trailing 1-month period

9.30%

4.49%

+4.81%

Volatility (6M)

Calculated over the trailing 6-month period

32.18%

12.10%

+20.08%

Volatility (1Y)

Calculated over the trailing 1-year period

43.09%

15.94%

+27.15%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

55.83%

22.38%

+33.45%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

62.07%

22.29%

+39.78%

FAZ vs. QQQ - Expense Ratio Comparison

FAZ has a 1.07% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

FAZ vs. QQQ - Dividend Comparison

FAZ's dividend yield for the trailing twelve months is around 2.77%, more than QQQ's 0.38% yield.

PositionTTM20252024202320222021202020192018201720162015
FAZ
Direxion Daily Financial Bear 3X Shares		2.77%5.07%7.34%4.88%0.00%0.00%0.62%1.63%0.56%0.00%0.00%0.00%
QQQ
Invesco QQQ ETF		0.38%0.45%0.56%0.62%0.80%0.43%0.55%0.74%0.91%0.84%1.06%0.99%

Frequently Asked Questions

FAZ and QQQ have a correlation of -0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

FAZ has higher volatility (9.30%) compared to QQQ (4.49%). In terms of maximum drawdown, FAZ dropped -100.00% vs QQQ's -82.97%.

On 10-year performance, QQQ leads with 21.94% vs -42.81% for FAZ. On fees, QQQ is cheaper at 0.18% per year. On volatility, QQQ has been the lower-risk option at 4.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, QQQ has performed better with a 21.94% return vs -42.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

QQQ is cheaper with a 0.18% expense ratio, compared with 1.07% for FAZ.

FAZ has the higher dividend yield at 2.77%, compared with 0.38% for QQQ.

FAZ is categorized as Leveraged Equities, while QQQ is Nasdaq-100. FAZ tracks Russell 1000 Financial Services Index (-300%), while QQQ tracks NASDAQ-100 Index. They also come from different issuers: Direxion and Invesco. Their fees differ too: 1.07% for FAZ and 0.18% for QQQ.

QQQ currently has the higher Sharpe Ratio (2.64 vs 0.01), 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.

Portfolio Optimizer

Find the right allocation for FAZ and QQQ

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