FAZ vs. SMH
Compare and contrast key facts about Direxion Daily Financial Bear 3X Shares (FAZ) and VanEck Semiconductor ETF (SMH).
FAZ and SMH are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FAZ is a passively managed fund by Direxion that tracks the performance of the Russell 1000 Financial Services Index (-300%). It was launched on Nov 6, 2008. SMH is a passively managed fund by VanEck that tracks the performance of the MVIS US Listed Semiconductor 25 Index. It was launched on Dec 20, 2011. Both FAZ and SMH are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Performance
FAZ vs. SMH - Performance Comparison
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FAZ vs. SMH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 33.01% | -37.21% | -51.01% | -26.67% | 1.16% | -67.05% | -73.90% | -58.62% | 16.84% | -46.18% |
SMH VanEck Semiconductor ETF | 6.46% | 49.17% | 39.10% | 73.38% | -33.53% | 42.13% | 55.53% | 64.45% | -9.05% | 38.48% |
Returns By Period
In the year-to-date period, FAZ achieves a 33.01% return, which is significantly higher than SMH's 6.46% return. Over the past 10 years, FAZ has underperformed SMH with an annualized return of -43.10%, while SMH has yielded a comparatively higher 31.28% annualized return.
FAZ
- 1D
- -6.11%
- 1M
- 11.41%
- YTD
- 33.01%
- 6M
- 26.95%
- 1Y
- -7.23%
- 3Y*
- -36.21%
- 5Y*
- -29.62%
- 10Y*
- -43.10%
SMH
- 1D
- 5.76%
- 1M
- -5.65%
- YTD
- 6.46%
- 6M
- 17.84%
- 1Y
- 81.87%
- 3Y*
- 43.47%
- 5Y*
- 25.59%
- 10Y*
- 31.28%
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FAZ vs. SMH - Expense Ratio Comparison
FAZ has a 1.07% expense ratio, which is higher than SMH's 0.35% expense ratio.
Return for Risk
FAZ vs. SMH — Risk / Return Rank
FAZ
SMH
FAZ vs. SMH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Financial Bear 3X Shares (FAZ) and VanEck Semiconductor ETF (SMH). 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.
| FAZ | SMH | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | -0.12 | 2.23 | -2.36 |
Sortino ratioReturn per unit of downside risk | 0.24 | 2.85 | -2.60 |
Omega ratioGain probability vs. loss probability | 1.03 | 1.40 | -0.37 |
Calmar ratioReturn relative to maximum drawdown | -0.20 | 5.10 | -5.30 |
Martin ratioReturn relative to average drawdown | -0.26 | 18.29 | -18.55 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| FAZ | SMH | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -0.12 | 2.23 | -2.36 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.53 | 0.74 | -1.27 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.70 | 0.97 | -1.67 |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.72 | 0.28 | -1.00 |
Correlation
The correlation between FAZ and SMH is -0.57. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.
Dividends
FAZ vs. SMH - Dividend Comparison
FAZ's dividend yield for the trailing twelve months is around 2.56%, more than SMH's 0.29% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 2.56% | 5.07% | 7.34% | 4.88% | 0.00% | 0.00% | 0.62% | 1.63% | 0.56% | 0.00% | 0.00% | 0.00% |
SMH VanEck Semiconductor ETF | 0.29% | 0.31% | 0.44% | 0.60% | 1.18% | 0.51% | 0.69% | 1.50% | 1.88% | 1.43% | 0.80% | 2.14% |
Drawdowns
FAZ vs. SMH - Drawdown Comparison
The maximum FAZ drawdown since its inception was -100.00%, which is greater than SMH's maximum drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for FAZ and SMH.
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Drawdown Indicators
| FAZ | SMH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -84.96% | -15.04% |
Max Drawdown (1Y)Largest decline over 1 year | -54.53% | -15.95% | -38.58% |
Max Drawdown (5Y)Largest decline over 5 years | -88.14% | -45.30% | -42.84% |
Max Drawdown (10Y)Largest decline over 10 years | -99.78% | -45.30% | -54.48% |
Current DrawdownCurrent decline from peak | -100.00% | -10.03% | -89.97% |
Average DrawdownAverage peak-to-trough decline | -99.13% | -41.36% | -57.77% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 42.00% | 4.44% | +37.56% |
Volatility
FAZ vs. SMH - Volatility Comparison
Direxion Daily Financial Bear 3X Shares (FAZ) has a higher volatility of 13.94% compared to VanEck Semiconductor ETF (SMH) at 12.11%. This indicates that FAZ's price experiences larger fluctuations and is considered to be riskier than SMH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAZ | SMH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 13.94% | 12.11% | +1.83% |
Volatility (6M)Calculated over the trailing 6-month period | 33.73% | 23.95% | +9.78% |
Volatility (1Y)Calculated over the trailing 1-year period | 58.30% | 36.84% | +21.46% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 56.10% | 34.71% | +21.39% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 62.13% | 32.28% | +29.85% |