FAZ vs. TZA
FAZ (Direxion Daily Financial Bear 3X Shares) and TZA (Direxion Daily Small Cap Bear 3X Shares) are both Leveraged Equities funds from Direxion - FAZ tracks the Russell 1000 Financial Services Index (-300%) while TZA tracks the Russell 2000 Index (-300%). Both are passively managed. Over the past 10 years, FAZ returned -44.48%/yr vs -42.58%/yr for TZA. Their 0.79 correlation means they have sometimes moved together and sometimes differently. FAZ charges 1.07%/yr vs 1.11%/yr for TZA.
Performance
FAZ vs. TZA - 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 TZA's -43.24% return. Both investments have delivered pretty close results over the past 10 years, with FAZ having a -44.48% annualized return and TZA not far ahead at -42.58%.
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%
TZA
- 1D
- 1.46%
- 1M
- 6.63%
- 6M
- -33.61%
- YTD
- -43.24%
- 1Y
- -63.97%
- 3Y*
- -40.66%
- 5Y*
- -31.37%
- 10Y*
- -42.58%
- ALL TIME*
- -49.66%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $19.80M | $17.81M | $19.33M | |
| $153.79M | $463.04M | $1.03B |
FAZ vs. TZA - 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% |
TZA Direxion Daily Small Cap Bear 3X Shares | -43.24% | -40.22% | -32.22% | -41.19% | 30.21% | -50.80% | -80.43% | -53.25% | 25.06% | -38.19% |
Correlation
The correlation between FAZ and TZA is 0.53, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.53 |
Correlation (3Y) Balances recent behavior with more history. | 0.66 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.73 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.75 |
Correlation (All Time) Calculated using the full available price history since Nov 19, 2008 | 0.79 |
Over the past year, the correlation between FAZ and TZA has dropped to 0.53 - well below their long-term average of 0.79, suggesting their price drivers have been diverging.
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Return for Risk
FAZ vs. TZA — Risk / Return Rank
FAZ
TZA
FAZ vs. TZA - 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 Small Cap Bear 3X Shares (TZA). 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 | TZA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.53 | ||
| Sortino ratioReturn per unit of downside risk | +1.23 | ||
| Omega ratioGain probability vs. loss probability | 0.94 | 0.80 | +0.14 |
| Calmar ratioReturn relative to maximum drawdown | -0.56 | -0.92 | +0.36 |
| Martin ratioReturn relative to average drawdown | -1.29 | -1.34 | +0.05 |
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Drawdowns
FAZ vs. TZA - Drawdown Comparison
The maximum FAZ drawdown since its inception was -100.00%, roughly equal to the maximum TZA drawdown of -100.00%. Use the drawdown chart below to compare losses from any high point for FAZ and TZA.
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Drawdown Indicators
| FAZ | TZA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -100.00% | 0.00% |
Max Drawdown (1Y)Largest decline over 1 year | -42.80% | -67.34% | +24.54% |
Max Drawdown (3Y)Largest decline over 3 years | -84.95% | -89.50% | +4.55% |
Max Drawdown (5Y)Largest decline over 5 years | -88.55% | -91.74% | +3.19% |
Max Drawdown (10Y)Largest decline over 10 years | -99.72% | -99.67% | -0.05% |
Current DrawdownCurrent decline from peak | -100.00% | -100.00% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -99.12% | -98.00% | -1.12% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 18.45% | 46.18% | -27.73% |
Volatility
FAZ vs. TZA - Volatility Comparison
Direxion Daily Financial Bear 3X Shares (FAZ) has a higher volatility of 11.94% compared to Direxion Daily Small Cap Bear 3X Shares (TZA) at 11.25%. This indicates that FAZ's price experiences larger fluctuations and is considered to be riskier than TZA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAZ | TZA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 11.94% | 11.25% | +0.69% |
Volatility (6M)Calculated over the trailing 6-month period | 32.77% | 42.35% | -9.58% |
Volatility (1Y)Calculated over the trailing 1-year period | 44.05% | 57.73% | -13.68% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 55.31% | 67.27% | -11.96% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 61.87% | 68.83% | -6.96% |
FAZ vs. TZA - Expense Ratio Comparison
FAZ has a 1.07% expense ratio, which is lower than TZA's 1.11% expense ratio.
Dividends
FAZ vs. TZA - Dividend Comparison
FAZ's dividend yield for the trailing twelve months is around 3.57%, less than TZA's 4.67% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
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% |
TZA Direxion Daily Small Cap Bear 3X Shares | 4.67% | 5.08% | 5.40% | 5.49% | 0.00% | 0.00% | 1.21% | 1.56% | 0.63% |
Frequently Asked Questions
FAZ and TZA have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAZ has higher volatility (11.94%) compared to TZA (11.25%). In terms of maximum drawdown, FAZ dropped -100.00% vs TZA's -100.00%.
On 10-year performance, TZA leads with -42.58% vs -44.48% for FAZ. On fees, FAZ is cheaper at 1.07% per year. On volatility, TZA has been the lower-risk option at 11.25%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, TZA has performed better with a -42.58% return vs -44.48%. 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 1.11% for TZA.
TZA has the higher dividend yield at 4.67%, compared with 3.57% for FAZ.
FAZ tracks Russell 1000 Financial Services Index (-300%), while TZA tracks Russell 2000 Index (-300%). Their fees differ too: 1.07% for FAZ and 1.11% for TZA.
FAZ currently has the higher Sharpe Ratio (-0.54 vs -1.07), 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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