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 -43.00%/yr vs -56.04%/yr for SQQQ. A 0.64 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
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Returns By Period
In the year-to-date period, FAZ achieves a 18.57% return, which is significantly higher than SQQQ's -45.68% return. Over the past 10 years, FAZ has outperformed SQQQ with an annualized return of -43.00%, while SQQQ has yielded a comparatively lower -56.04% annualized return.
FAZ
- 1D
- -0.15%
- 1M
- 3.55%
- YTD
- 18.57%
- 6M
- 6.21%
- 1Y
- -3.61%
- 3Y*
- -37.43%
- 5Y*
- -26.62%
- 10Y*
- -43.00%
SQQQ
- 1D
- -1.36%
- 1M
- -26.50%
- YTD
- -45.68%
- 6M
- -43.61%
- 1Y
- -66.23%
- 3Y*
- -56.30%
- 5Y*
- -49.79%
- 10Y*
- -56.04%
FAZ vs. SQQQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 18.57% | -37.21% | -51.01% | -26.67% | 1.16% | -67.05% | -73.90% | -58.62% | 16.84% | -46.18% |
SQQQ ProShares UltraPro Short QQQ | -45.68% | -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 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.43 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.44 |
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 12, 2010 | 0.64 |
Over the past year, the correlation between FAZ and SQQQ has dropped to 0.43 - well below their long-term average of 0.64, 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.
| FAZ | SQQQ | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | -0.08 | -1.39 | +1.30 |
Sortino ratioReturn per unit of downside risk | 0.19 | -2.71 | +2.90 |
Omega ratioGain probability vs. loss probability | 1.02 | 0.72 | +0.30 |
Calmar ratioReturn relative to maximum drawdown | -0.13 | -1.01 | +0.89 |
Martin ratioReturn relative to average drawdown | -0.23 | -1.86 | +1.63 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| FAZ | SQQQ | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -0.08 | -1.39 | +1.30 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.48 | -0.75 | +0.27 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.69 | -0.85 | +0.16 |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.72 | -0.88 | +0.15 |
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 | -30.20% | -65.95% | +35.75% |
Max Drawdown (3Y)Largest decline over 3 years | -83.61% | -92.38% | +8.77% |
Max Drawdown (5Y)Largest decline over 5 years | -87.53% | -97.23% | +9.70% |
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 | -99.14% | -92.40% | -6.74% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 16.55% | 35.95% | -19.40% |
Volatility
FAZ vs. SQQQ - Volatility Comparison
The current volatility for Direxion Daily Financial Bear 3X Shares (FAZ) is 8.85%, while ProShares UltraPro Short QQQ (SQQQ) has a volatility of 13.72%. 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 | 8.85% | 13.72% | -4.87% |
Volatility (6M)Calculated over the trailing 6-month period | 32.10% | 36.46% | -4.36% |
Volatility (1Y)Calculated over the trailing 1-year period | 42.95% | 47.82% | -4.87% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 55.81% | 66.66% | -10.85% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 62.07% | 66.12% | -4.05% |
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 2.87%, less than SQQQ's 12.57% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 2.87% | 5.07% | 7.34% | 4.88% | 0.00% | 0.00% | 0.62% | 1.63% | 0.56% | 0.00% |
SQQQ ProShares UltraPro Short QQQ | 12.57% | 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 0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SQQQ has higher volatility (13.72%) compared to FAZ (8.85%). In terms of maximum drawdown, FAZ dropped -100.00% vs SQQQ's -100.00%.
On 10-year performance, FAZ leads with -43.00% vs -56.04% for SQQQ. On fees, SQQQ is cheaper at 0.95% per year. On volatility, FAZ has been the lower-risk option at 8.85%. 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 -43.00% return vs -56.04%. 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 12.57%, compared with 2.87% 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 (-0.08 vs -1.39), 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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