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 -44.48%/yr vs -54.48%/yr for SQQQ. Their 0.63 correlation means they have sometimes moved together and sometimes differently. FAZ charges 1.07%/yr vs 0.95%/yr for SQQQ.
Performance
FAZ vs. SQQQ - Performance Comparison
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Returns By Period
In the year-to-date period, FAZ achieves a -13.28% return, which is significantly higher than SQQQ's -34.61% return. Over the past 10 years, FAZ has outperformed SQQQ with an annualized return of -44.48%, while SQQQ has yielded a comparatively lower -54.48% annualized return.
FAZ
- 1D
- 0.43%
- 1M
- -6.62%
- 6M
- -19.32%
- YTD
- -13.28%
- 1Y
- -27.65%
- 3Y*
- -39.34%
- 5Y*
- -32.28%
- 10Y*
- -44.48%
- ALL TIME*
- -53.80%
SQQQ
- 1D
- -1.99%
- 1M
- 9.46%
- 6M
- -32.40%
- YTD
- -34.61%
- 1Y
- -52.32%
- 3Y*
- -49.83%
- 5Y*
- -44.46%
- 10Y*
- -54.48%
- ALL TIME*
- -52.68%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $19.80M | $17.81M | $19.33M | |
| $2.40B | $2.29B | $2.66B |
FAZ vs. SQQQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | -13.28% | -37.21% | -51.01% | -26.67% | 1.16% | -67.05% | -73.90% | -58.62% | 16.84% | -46.18% |
SQQQ ProShares UltraPro Short QQQ | -34.61% | -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 0.31, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.31 |
Correlation (3Y) Balances recent behavior with more history. | 0.42 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.55 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.55 |
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 0.31 - well below their long-term average of 0.63, suggesting their price drivers have been diverging.
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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 | +0.31 | ||
| Sortino ratioReturn per unit of downside risk | +0.67 | ||
| Omega ratioGain probability vs. loss probability | 0.94 | 0.86 | +0.07 |
| Calmar ratioReturn relative to maximum drawdown | -0.56 | -0.81 | +0.26 |
| Martin ratioReturn relative to average drawdown | -1.29 | -1.41 | +0.12 |
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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.
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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 | -42.80% | -61.03% | +18.23% |
Max Drawdown (3Y)Largest decline over 3 years | -84.95% | -92.51% | +7.56% |
Max Drawdown (5Y)Largest decline over 5 years | -88.55% | -97.27% | +8.72% |
Max Drawdown (10Y)Largest decline over 10 years | -99.72% | -99.97% | +0.25% |
Current DrawdownCurrent decline from peak | -100.00% | -100.00% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -99.12% | -92.78% | -6.34% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 18.45% | 35.08% | -16.63% |
Volatility
FAZ vs. SQQQ - Volatility Comparison
The current volatility for Direxion Daily Financial Bear 3X Shares (FAZ) is 11.94%, while ProShares UltraPro Short QQQ (SQQQ) has a volatility of 20.82%. 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.
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Volatility by Period
| FAZ | SQQQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 11.94% | 20.82% | -8.88% |
Volatility (6M)Calculated over the trailing 6-month period | 32.77% | 48.09% | -15.32% |
Volatility (1Y)Calculated over the trailing 1-year period | 44.05% | 57.98% | -13.93% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 55.31% | 68.18% | -12.87% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 61.87% | 66.74% | -4.87% |
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 3.57%, less than SQQQ's 9.14% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 3.57% | 5.07% | 7.34% | 4.88% | 0.00% | 0.00% | 0.62% | 1.63% | 0.56% | 0.00% |
SQQQ ProShares UltraPro Short QQQ | 9.14% | 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 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SQQQ has higher volatility (20.82%) compared to FAZ (11.94%). In terms of maximum drawdown, FAZ dropped -100.00% vs SQQQ's -100.00%.
On 10-year performance, FAZ leads with -44.48% vs -54.48% for SQQQ. On fees, SQQQ is cheaper at 0.95% per year. On volatility, FAZ has been the lower-risk option at 11.94%. 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 -44.48% return vs -54.48%. 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 9.14%, compared with 3.57% 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 (-0.54 vs -0.86), 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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