FAZ vs. SMH
FAZ (Direxion Daily Financial Bear 3X Shares) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - FAZ is a Leveraged Equities fund tracking the Russell 1000 Financial Services Index (-300%), while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, FAZ returned -44.72%/yr vs 37.85%/yr for SMH. At a correlation of -0.56, they often move in opposite directions. FAZ charges 1.07%/yr vs 0.35%/yr for SMH.
Performance
FAZ vs. SMH - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, FAZ achieves a 1.40% return, which is significantly lower than SMH's 72.73% return. Over the past 10 years, FAZ has underperformed SMH with an annualized return of -44.72%, while SMH has yielded a comparatively higher 37.85% 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%
SMH
- 1D
- -7.01%
- 1M
- 7.93%
- YTD
- 72.73%
- 6M
- 71.29%
- 1Y
- 138.23%
- 3Y*
- 62.28%
- 5Y*
- 38.18%
- 10Y*
- 37.85%
FAZ vs. SMH - 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% |
SMH VanEck Semiconductor ETF | 72.73% | 49.17% | 39.10% | 73.38% | -33.53% | 42.13% | 55.53% | 64.45% | -9.05% | 38.48% |
Correlation
The correlation between FAZ and SMH is -0.19, 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 | -0.19 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.29 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.45 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.49 |
Correlation (All Time) Calculated using the full available price history since Nov 19, 2008 | -0.56 |
Over the past year, the inverse relationship between FAZ and SMH has weakened: their correlation has moved from -0.56 to -0.19, 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.
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.
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 | SMH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -4.40 | ||
| Sortino ratioReturn per unit of downside risk | -4.39 | ||
| Omega ratioGain probability vs. loss probability | 0.96 | 1.58 | -0.62 |
| Calmar ratioReturn relative to maximum drawdown | -0.56 | 9.31 | -9.88 |
| Martin ratioReturn relative to average drawdown | -1.26 | 33.88 | -35.14 |
Loading charts...
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.
Loading charts...
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 | -31.57% | -14.93% | -16.64% |
Max Drawdown (3Y)Largest decline over 3 years | -83.61% | -35.74% | -47.87% |
Max Drawdown (5Y)Largest decline over 5 years | -87.53% | -45.30% | -42.23% |
Max Drawdown (10Y)Largest decline over 10 years | -99.78% | -45.30% | -54.48% |
Current DrawdownCurrent decline from peak | -100.00% | -7.01% | -92.99% |
Average DrawdownAverage peak-to-trough decline | -99.12% | -41.01% | -58.11% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 14.64% | 4.10% | +10.54% |
Volatility
FAZ vs. SMH - Volatility Comparison
The current volatility for Direxion Daily Financial Bear 3X Shares (FAZ) is 12.48%, while VanEck Semiconductor ETF (SMH) has a volatility of 19.08%. This indicates that FAZ experiences smaller price fluctuations and is considered to be less risky than SMH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| FAZ | SMH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.48% | 19.08% | -6.60% |
Volatility (6M)Calculated over the trailing 6-month period | 33.25% | 29.18% | +4.07% |
Volatility (1Y)Calculated over the trailing 1-year period | 43.64% | 34.87% | +8.77% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 55.67% | 35.83% | +19.84% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 61.93% | 32.97% | +28.96% |
FAZ vs. SMH - Expense Ratio Comparison
FAZ has a 1.07% expense ratio, which is higher than SMH's 0.35% expense ratio.
Dividends
FAZ vs. SMH - Dividend Comparison
FAZ's dividend yield for the trailing twelve months is around 3.35%, more than SMH's 0.18% 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% |
SMH VanEck Semiconductor ETF | 0.18% | 0.31% | 0.44% | 0.60% | 1.18% | 0.51% | 0.69% | 1.50% | 1.88% | 1.43% | 0.80% | 2.14% |
Frequently Asked Questions
FAZ and SMH have a correlation of -0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SMH has higher volatility (19.08%) compared to FAZ (12.48%). In terms of maximum drawdown, FAZ dropped -100.00% vs SMH's -84.96%.
On 10-year performance, SMH leads with 37.85% vs -44.72% for FAZ. On fees, SMH is cheaper at 0.35% 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, SMH has performed better with a 37.85% return vs -44.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SMH is cheaper with a 0.35% expense ratio, compared with 1.07% for FAZ.
FAZ has the higher dividend yield at 3.35%, compared with 0.18% for SMH.
FAZ is categorized as Leveraged Equities, while SMH is Semiconductors. FAZ tracks Russell 1000 Financial Services Index (-300%), while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: Direxion and VanEck. Their fees differ too: 1.07% for FAZ and 0.35% for SMH.
SMH currently has the higher Sharpe Ratio (3.99 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 SMH
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