FAZ vs. TMF
FAZ (Direxion Daily Financial Bear 3X Shares) and TMF (Direxion Daily 20-Year Treasury Bull 3X) are both exchange-traded funds - FAZ is a Leveraged Equities fund tracking the Russell 1000 Financial Services Index (-300%), while TMF is a Leveraged Bonds fund tracking the NYSE 20 Year Plus Treasury Bond Index (300%). Both are passively managed. Over the past 10 years, FAZ returned -42.81%/yr vs -16.56%/yr for TMF. At a 0.30 correlation, their price movements are largely independent. FAZ charges 1.07%/yr vs 1.09%/yr for TMF.
Performance
FAZ vs. TMF - Performance Comparison
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Returns By Period
In the year-to-date period, FAZ achieves a 22.66% return, which is significantly higher than TMF's -6.13% return. Over the past 10 years, FAZ has underperformed TMF with an annualized return of -42.81%, while TMF has yielded a comparatively higher -16.56% 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%
TMF
- 1D
- -1.14%
- 1M
- 1.22%
- YTD
- -6.13%
- 6M
- -11.63%
- 1Y
- 0.90%
- 3Y*
- -20.78%
- 5Y*
- -30.52%
- 10Y*
- -16.56%
FAZ vs. TMF - 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% |
TMF Direxion Daily 20-Year Treasury Bull 3X | -6.13% | -2.94% | -35.95% | -13.01% | -72.60% | -19.80% | 39.02% | 34.75% | -11.01% | 22.72% |
Correlation
The correlation between FAZ and TMF is -0.11, 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 | -0.11 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.13 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.01 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.19 |
Correlation (All Time) Calculated using the full available price history since Apr 17, 2009 | 0.30 |
The correlation between FAZ and TMF shifts across timeframes, from -0.13 (3 years) to 0.30 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
FAZ vs. TMF — Risk / Return Rank
FAZ
TMF
FAZ vs. TMF - 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 20-Year Treasury Bull 3X (TMF). 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 | TMF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.02 | ||
| Sortino ratioReturn per unit of downside risk | +0.09 | ||
| Omega ratioGain probability vs. loss probability | 1.04 | 1.03 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 0.02 | 0.03 | -0.02 |
| Martin ratioReturn relative to average drawdown | 0.03 | 0.08 | -0.04 |
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 | TMF | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.01 | 0.03 | -0.02 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.47 | -0.66 | +0.19 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.69 | -0.38 | -0.31 |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.72 | -0.14 | -0.59 |
Drawdowns
FAZ vs. TMF - Drawdown Comparison
The maximum FAZ drawdown since its inception was -100.00%, which is greater than TMF's maximum drawdown of -92.89%. Use the drawdown chart below to compare losses from any high point for FAZ and TMF.
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Drawdown Indicators
| FAZ | TMF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -92.89% | -7.11% |
Max Drawdown (1Y)Largest decline over 1 year | -30.20% | -26.51% | -3.69% |
Max Drawdown (3Y)Largest decline over 3 years | -83.61% | -56.31% | -27.30% |
Max Drawdown (5Y)Largest decline over 5 years | -87.53% | -88.81% | +1.28% |
Max Drawdown (10Y)Largest decline over 10 years | -99.78% | -92.89% | -6.89% |
Current DrawdownCurrent decline from peak | -100.00% | -92.23% | -7.77% |
Average DrawdownAverage peak-to-trough decline | -99.14% | -43.63% | -55.51% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 16.58% | 11.49% | +5.09% |
Volatility
FAZ vs. TMF - Volatility Comparison
Direxion Daily Financial Bear 3X Shares (FAZ) has a higher volatility of 9.30% compared to Direxion Daily 20-Year Treasury Bull 3X (TMF) at 8.09%. This indicates that FAZ's price experiences larger fluctuations and is considered to be riskier than TMF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAZ | TMF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.30% | 8.09% | +1.21% |
Volatility (6M)Calculated over the trailing 6-month period | 32.18% | 19.01% | +13.17% |
Volatility (1Y)Calculated over the trailing 1-year period | 43.09% | 28.76% | +14.33% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 55.83% | 46.75% | +9.08% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 62.07% | 43.92% | +18.15% |
FAZ vs. TMF - Expense Ratio Comparison
FAZ has a 1.07% expense ratio, which is lower than TMF's 1.09% expense ratio.
Dividends
FAZ vs. TMF - Dividend Comparison
FAZ's dividend yield for the trailing twelve months is around 2.77%, less than TMF's 4.15% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
TMF Direxion Daily 20-Year Treasury Bull 3X | 4.15% | 4.06% | 4.29% | 2.82% | 1.62% | 0.13% | 2.23% | 0.94% | 1.49% | 0.41% |
Frequently Asked Questions
FAZ and TMF have a correlation of -0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAZ has higher volatility (9.30%) compared to TMF (8.09%). In terms of maximum drawdown, FAZ dropped -100.00% vs TMF's -92.89%.
On 10-year performance, TMF leads with -16.56% vs -42.81% for FAZ. On fees, FAZ is cheaper at 1.07% per year. On volatility, TMF has been the lower-risk option at 8.09%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, TMF has performed better with a -16.56% return vs -42.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FAZ is cheaper with a 1.07% expense ratio, compared with 1.09% for TMF.
TMF has the higher dividend yield at 4.15%, compared with 2.77% for FAZ.
FAZ is categorized as Leveraged Equities, while TMF is Leveraged Bonds. FAZ tracks Russell 1000 Financial Services Index (-300%), while TMF tracks NYSE 20 Year Plus Treasury Bond Index (300%). Their fees differ too: 1.07% for FAZ and 1.09% for TMF.
TMF currently has the higher Sharpe Ratio (0.03 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.
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