FAZ vs. QQQ
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 -44.72%/yr vs 22.07%/yr for QQQ. At a correlation of -0.64, they often move in opposite directions. FAZ charges 1.07%/yr vs 0.18%/yr for QQQ.
Performance
FAZ vs. QQQ - Performance Comparison
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Returns By Period
In the year-to-date period, FAZ achieves a 1.40% return, which is significantly lower than QQQ's 16.45% return. Over the past 10 years, FAZ has underperformed QQQ with an annualized return of -44.72%, while QQQ has yielded a comparatively higher 22.07% 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%
QQQ
- 1D
- -3.29%
- 1M
- -0.43%
- YTD
- 16.45%
- 6M
- 14.99%
- 1Y
- 34.88%
- 3Y*
- 26.05%
- 5Y*
- 16.01%
- 10Y*
- 22.07%
FAZ vs. QQQ - 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% |
QQQ Invesco QQQ ETF | 16.45% | 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 -0.36, 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 | -0.43 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.55 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.56 |
Correlation (All Time) Calculated using the full available price history since Nov 19, 2008 | -0.64 |
Over the past year, the inverse relationship between FAZ and QQQ has weakened: their correlation has moved from -0.64 to -0.36, meaning they move in opposite directions less often than they have historically.
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Return for Risk
FAZ vs. QQQ — Risk / Return Rank
FAZ
QQQ
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.
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 | QQQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.36 | ||
| Sortino ratioReturn per unit of downside risk | -2.91 | ||
| Omega ratioGain probability vs. loss probability | 0.96 | 1.35 | -0.38 |
| Calmar ratioReturn relative to maximum drawdown | -0.56 | 2.93 | -3.49 |
| Martin ratioReturn relative to average drawdown | -1.26 | 10.86 | -12.13 |
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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.
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Drawdown Indicators
| FAZ | QQQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -82.97% | -17.03% |
Max Drawdown (1Y)Largest decline over 1 year | -31.57% | -11.96% | -19.61% |
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 DrawdownCurrent decline from peak | -100.00% | -4.25% | -95.75% |
Average DrawdownAverage peak-to-trough decline | -99.12% | -32.73% | -66.39% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 14.64% | 3.22% | +11.42% |
Volatility
FAZ vs. QQQ - Volatility Comparison
Direxion Daily Financial Bear 3X Shares (FAZ) has a higher volatility of 12.48% compared to Invesco QQQ ETF (QQQ) at 9.17%. 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.
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Volatility by Period
| FAZ | QQQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.48% | 9.17% | +3.31% |
Volatility (6M)Calculated over the trailing 6-month period | 33.25% | 14.57% | +18.68% |
Volatility (1Y)Calculated over the trailing 1-year period | 43.64% | 17.96% | +25.68% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 55.67% | 22.69% | +32.98% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 61.93% | 22.42% | +39.51% |
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 3.35%, more than QQQ's 0.43% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% | 0.00% | 0.00% |
QQQ Invesco QQQ ETF | 0.43% | 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 -0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAZ has higher volatility (12.48%) compared to QQQ (9.17%). In terms of maximum drawdown, FAZ dropped -100.00% vs QQQ's -82.97%.
On 10-year performance, QQQ leads with 22.07% vs -44.72% for FAZ. On fees, QQQ is cheaper at 0.18% per year. On volatility, QQQ has been the lower-risk option at 9.17%. 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 22.07% return vs -44.72%. 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 3.35%, compared with 0.43% 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 (1.95 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.
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