FAZ vs. SOXL

Last updated Jun 4, 2026

FAZ (Direxion Daily Financial Bear 3X Shares) and SOXL (Direxion Daily Semiconductor Bull 3X ETF) are both Leveraged Equities funds from Direxion - FAZ tracks the Russell 1000 Financial Services Index (-300%) while SOXL tracks the ICE Semiconductor Index. Both are passively managed. Over the past 10 years, FAZ returned -42.81%/yr vs 65.39%/yr for SOXL. At a correlation of -0.58, they often move in opposite directions. FAZ charges 1.07%/yr vs 0.75%/yr for SOXL.

Performance

FAZ vs. SOXL - 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 Semiconductor Bull 3X ETF (SOXL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FAZ achieves a 22.66% return, which is significantly lower than SOXL's 567.48% return. Over the past 10 years, FAZ has underperformed SOXL with an annualized return of -42.81%, while SOXL has yielded a comparatively higher 65.39% 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%

SOXL

• 1D: 5.34%
• 1M: 119.95%
• YTD: 567.48%
• 6M: 502.28%
• 1Y: 1,438.30%
• 3Y*: 135.13%
• 5Y*: 48.72%
• 10Y*: 65.39%

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

FAZ vs. SOXL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
SOXL Direxion Daily Semiconductor Bull 3X ETF	567.48%	54.91%	-12.31%	226.98%	-85.66%	118.84%	70.04%	231.83%	-39.07%	141.71%

Correlation

The correlation between FAZ and SOXL is -0.23, 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	-0.23
Correlation (3Y) Calculated over the trailing 3-year period	-0.33
Correlation (5Y) Calculated over the trailing 5-year period	-0.47
Correlation (10Y) Calculated over the trailing 10-year period	-0.51
Correlation (All Time) Calculated using the full available price history since Mar 12, 2010	-0.58

Over the past year, the inverse relationship between FAZ and SOXL has weakened: their correlation has moved from -0.58 to -0.23, meaning they move in opposite directions less often than they have historically.

Return for Risk

FAZ vs. SOXL — Risk / Return Rank

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

FAZ

FAZ Risk / Return Rank: 9
FAZ Sharpe Ratio Rank: 9
FAZ Sortino Ratio Rank: 10
FAZ Omega Ratio Rank: 10
FAZ Calmar Ratio Rank: 9
FAZ Martin Ratio Rank: 9

SOXL

SOXL Risk / Return Rank: 97
SOXL Sharpe Ratio Rank: 100
SOXL Sortino Ratio Rank: 95
SOXL Omega Ratio Rank: 95
SOXL Calmar Ratio Rank: 99
SOXL 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. SOXL - 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 Semiconductor Bull 3X ETF (SOXL). 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	SOXL	Difference
Sharpe ratio Return per unit of total volatility	0.01	14.28	-14.27
Sortino ratio Return per unit of downside risk	0.34	5.17	-4.83
Omega ratio Gain probability vs. loss probability	1.04	1.72	-0.68
Calmar ratio Return relative to maximum drawdown	0.02	33.47	-33.45
Martin ratio Return relative to average drawdown	0.03	114.79	-114.75
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. SOXL - Sharpe Ratio Comparison

The current FAZ Sharpe Ratio is 0.01, which is lower than the SOXL Sharpe Ratio of 14.28. The chart below compares the historical Sharpe Ratios of FAZ and SOXL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FAZ	SOXL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.01	14.28	-14.27
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.47	0.46	-0.93
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.69	0.66	-1.35
Sharpe Ratio (All Time) Calculated using the full available price history	-0.72	0.52	-1.24

Drawdowns

FAZ vs. SOXL - Drawdown Comparison

The maximum FAZ drawdown since its inception was -100.00%, which is greater than SOXL's maximum drawdown of -90.46%. Use the drawdown chart below to compare losses from any high point for FAZ and SOXL.

Drawdown Indicators

	FAZ	SOXL	Difference
Max Drawdown Largest peak-to-trough decline	-100.00%	-90.46%	-9.54%
Max Drawdown (1Y) Largest decline over 1 year	-30.20%	-43.47%	+13.27%
Max Drawdown (3Y) Largest decline over 3 years	-83.61%	-87.88%	+4.27%
Max Drawdown (5Y) Largest decline over 5 years	-87.53%	-90.46%	+2.93%
Max Drawdown (10Y) Largest decline over 10 years	-99.78%	-90.46%	-9.32%
Current Drawdown Current decline from peak	-100.00%	0.00%	-100.00%
Average Drawdown Average peak-to-trough decline	-99.14%	-35.01%	-64.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	16.58%	12.65%	+3.93%

Volatility

FAZ vs. SOXL - Volatility Comparison

The current volatility for Direxion Daily Financial Bear 3X Shares (FAZ) is 9.30%, while Direxion Daily Semiconductor Bull 3X ETF (SOXL) has a volatility of 40.82%. This indicates that FAZ experiences smaller price fluctuations and is considered to be less risky than SOXL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FAZ	SOXL	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.30%	40.82%	-31.52%
Volatility (6M) Calculated over the trailing 6-month period	32.18%	81.29%	-49.11%
Volatility (1Y) Calculated over the trailing 1-year period	43.09%	102.11%	-59.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	55.83%	107.25%	-51.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	62.07%	99.04%	-36.97%

FAZ vs. SOXL - Expense Ratio Comparison

FAZ has a 1.07% expense ratio, which is higher than SOXL's 0.75% expense ratio.

Dividends

FAZ vs. SOXL - Dividend Comparison

FAZ's dividend yield for the trailing twelve months is around 2.77%, more than SOXL's 0.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
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%
SOXL Direxion Daily Semiconductor Bull 3X ETF	0.03%	0.34%	1.18%	0.51%	1.07%	0.04%	0.05%	0.38%	1.30%	0.09%	4.84%

Frequently Asked Questions

Can I hold both FAZ and SOXL in my portfolio?

FAZ and SOXL have a correlation of -0.23, 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 SOXL?

SOXL has higher volatility (40.82%) compared to FAZ (9.30%). In terms of maximum drawdown, FAZ dropped -100.00% vs SOXL's -90.46%.

Which ETF is better, FAZ or SOXL?

On 10-year performance, SOXL leads with 65.39% vs -42.81% for FAZ. On fees, SOXL is cheaper at 0.75% per year. On volatility, FAZ has been the lower-risk option at 9.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FAZ or SOXL?

Over the 10-year period, SOXL has performed better with a 65.39% return vs -42.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FAZ or SOXL?

SOXL is cheaper with a 0.75% expense ratio, compared with 1.07% for FAZ.

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

FAZ has the higher dividend yield at 2.77%, compared with 0.03% for SOXL.

What is the main difference between FAZ and SOXL?

FAZ tracks Russell 1000 Financial Services Index (-300%), while SOXL tracks ICE Semiconductor Index. Their fees differ too: 1.07% for FAZ and 0.75% for SOXL.

Which has better risk-adjusted returns?

SOXL currently has the higher Sharpe Ratio (14.28 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.