FAZ vs. SQQQ
FAZ (Direxion Daily Financial Bear 3X Shares) and SQQQ (ProShares UltraPro Short QQQ) are both Leveraged Equities funds - FAZ tracks the Russell 1000 Financial Services Index (-300%) while SQQQ tracks the NASDAQ-100 Index (-300%). Both are passively managed. Over the past 10 years, FAZ returned -44.72%/yr vs -56.24%/yr for SQQQ. A 0.63 correlation means they provide meaningful diversification when combined. FAZ charges 1.07%/yr vs 0.95%/yr for SQQQ.
Performance
FAZ vs. SQQQ - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, FAZ achieves a 1.40% return, which is significantly higher than SQQQ's -40.31% return. Over the past 10 years, FAZ has outperformed SQQQ with an annualized return of -44.72%, while SQQQ has yielded a comparatively lower -56.24% 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%
SQQQ
- 1D
- 9.83%
- 1M
- -2.27%
- YTD
- -40.31%
- 6M
- -37.80%
- 1Y
- -61.11%
- 3Y*
- -53.86%
- 5Y*
- -46.89%
- 10Y*
- -56.24%
FAZ vs. SQQQ - 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% |
SQQQ ProShares UltraPro Short QQQ | -40.31% | -53.05% | -49.79% | -73.61% | 82.40% | -60.87% | -86.40% | -65.92% | -20.83% | -58.67% |
Correlation
The correlation between FAZ and SQQQ is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.
| 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 | 0.56 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.56 |
Correlation (All Time) Calculated using the full available price history since Feb 11, 2010 | 0.63 |
Over the past year, the correlation between FAZ and SQQQ has dropped to 0.36 - well below their long-term average of 0.63, suggesting their price drivers have been diverging.
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. SQQQ — Risk / Return Rank
FAZ
SQQQ
FAZ vs. SQQQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Financial Bear 3X Shares (FAZ) and ProShares UltraPro Short QQQ (SQQQ). 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 | SQQQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.73 | ||
| Sortino ratioReturn per unit of downside risk | +1.73 | ||
| Omega ratioGain probability vs. loss probability | 0.96 | 0.78 | +0.19 |
| Calmar ratioReturn relative to maximum drawdown | -0.56 | -0.96 | +0.40 |
| Martin ratioReturn relative to average drawdown | -1.26 | -1.81 | +0.55 |
Loading charts...
Drawdowns
FAZ vs. SQQQ - Drawdown Comparison
The maximum FAZ drawdown since its inception was -100.00%, roughly equal to the maximum SQQQ drawdown of -100.00%. Use the drawdown chart below to compare losses from any high point for FAZ and SQQQ.
Loading charts...
Drawdown Indicators
| FAZ | SQQQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -100.00% | 0.00% |
Max Drawdown (1Y)Largest decline over 1 year | -31.57% | -63.52% | +31.95% |
Max Drawdown (3Y)Largest decline over 3 years | -83.61% | -92.51% | +8.90% |
Max Drawdown (5Y)Largest decline over 5 years | -87.53% | -97.27% | +9.74% |
Max Drawdown (10Y)Largest decline over 10 years | -99.78% | -99.98% | +0.20% |
Current DrawdownCurrent decline from peak | -100.00% | -100.00% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -99.12% | -92.73% | -6.39% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 14.64% | 36.37% | -21.73% |
Volatility
FAZ vs. SQQQ - Volatility Comparison
The current volatility for Direxion Daily Financial Bear 3X Shares (FAZ) is 12.48%, while ProShares UltraPro Short QQQ (SQQQ) has a volatility of 26.69%. This indicates that FAZ experiences smaller price fluctuations and is considered to be less risky than SQQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| FAZ | SQQQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.48% | 26.69% | -14.21% |
Volatility (6M)Calculated over the trailing 6-month period | 33.25% | 43.33% | -10.08% |
Volatility (1Y)Calculated over the trailing 1-year period | 43.64% | 53.65% | -10.01% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 55.67% | 67.53% | -11.86% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 61.93% | 66.47% | -4.54% |
FAZ vs. SQQQ - Expense Ratio Comparison
FAZ has a 1.07% expense ratio, which is higher than SQQQ's 0.95% expense ratio.
Dividends
FAZ vs. SQQQ - Dividend Comparison
FAZ's dividend yield for the trailing twelve months is around 3.35%, less than SQQQ's 11.44% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
SQQQ ProShares UltraPro Short QQQ | 11.44% | 9.36% | 10.23% | 8.01% | 0.28% | 0.00% | 2.15% | 2.92% | 1.47% | 0.14% |
Frequently Asked Questions
FAZ and SQQQ 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.
SQQQ has higher volatility (26.69%) compared to FAZ (12.48%). In terms of maximum drawdown, FAZ dropped -100.00% vs SQQQ's -100.00%.
On 10-year performance, FAZ leads with -44.72% vs -56.24% for SQQQ. On fees, SQQQ is cheaper at 0.95% 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, FAZ has performed better with a -44.72% return vs -56.24%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SQQQ is cheaper with a 0.95% expense ratio, compared with 1.07% for FAZ.
SQQQ has the higher dividend yield at 11.44%, compared with 3.35% for FAZ.
FAZ tracks Russell 1000 Financial Services Index (-300%), while SQQQ tracks NASDAQ-100 Index (-300%). They also come from different issuers: Direxion and ProShares. Their fees differ too: 1.07% for FAZ and 0.95% for SQQQ.
FAZ currently has the higher Sharpe Ratio (-0.41 vs -1.14), 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 SQQQ
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