FAZ vs. SOXL
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 -44.72%/yr vs 64.56%/yr for SOXL. At a correlation of -0.57, they often move in opposite directions. FAZ charges 1.07%/yr vs 0.75%/yr for SOXL.
Performance
FAZ vs. SOXL - 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 SOXL's 450.61% return. Over the past 10 years, FAZ has underperformed SOXL with an annualized return of -44.72%, while SOXL has yielded a comparatively higher 64.56% 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%
SOXL
- 1D
- -23.06%
- 1M
- 21.44%
- YTD
- 450.61%
- 6M
- 429.57%
- 1Y
- 976.09%
- 3Y*
- 120.84%
- 5Y*
- 42.16%
- 10Y*
- 64.56%
FAZ vs. SOXL - 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% |
SOXL Direxion Daily Semiconductor Bull 3X ETF | 450.61% | 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 -0.18, 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 | -0.18 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.31 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.46 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.50 |
Correlation (All Time) Calculated using the full available price history since Mar 11, 2010 | -0.57 |
Over the past year, the inverse relationship between FAZ and SOXL has weakened: their correlation has moved from -0.57 to -0.18, meaning they move in opposite directions less often than they have historically.
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Return for Risk
FAZ vs. SOXL — Risk / Return Rank
FAZ
SOXL
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.
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 | SOXL | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -8.85 | ||
| Sortino ratioReturn per unit of downside risk | -4.38 | ||
| Omega ratioGain probability vs. loss probability | 0.96 | 1.58 | -0.62 |
| Calmar ratioReturn relative to maximum drawdown | -0.56 | 22.69 | -23.25 |
| Martin ratioReturn relative to average drawdown | -1.26 | 72.83 | -74.09 |
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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.
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Drawdown Indicators
| FAZ | SOXL | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -90.46% | -9.54% |
Max Drawdown (1Y)Largest decline over 1 year | -31.57% | -43.47% | +11.90% |
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 DrawdownCurrent decline from peak | -100.00% | -23.06% | -76.94% |
Average DrawdownAverage peak-to-trough decline | -99.12% | -34.95% | -64.17% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 14.64% | 13.52% | +1.12% |
Volatility
FAZ vs. SOXL - Volatility Comparison
The current volatility for Direxion Daily Financial Bear 3X Shares (FAZ) is 12.48%, while Direxion Daily Semiconductor Bull 3X ETF (SOXL) has a volatility of 68.39%. 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.
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Volatility by Period
| FAZ | SOXL | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.48% | 68.39% | -55.91% |
Volatility (6M)Calculated over the trailing 6-month period | 33.25% | 99.84% | -66.59% |
Volatility (1Y)Calculated over the trailing 1-year period | 43.64% | 116.79% | -73.15% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 55.67% | 110.35% | -54.68% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 61.93% | 100.62% | -38.69% |
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 3.35%, 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 | 3.35% | 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
FAZ and SOXL have a correlation of -0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SOXL has higher volatility (68.39%) compared to FAZ (12.48%). In terms of maximum drawdown, FAZ dropped -100.00% vs SOXL's -90.46%.
On 10-year performance, SOXL leads with 64.56% vs -44.72% for FAZ. On fees, SOXL is cheaper at 0.75% 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, SOXL has performed better with a 64.56% return vs -44.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SOXL is cheaper with a 0.75% expense ratio, compared with 1.07% for FAZ.
FAZ has the higher dividend yield at 3.35%, compared with 0.03% for 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.
SOXL currently has the higher Sharpe Ratio (8.45 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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