FAZ vs. TZA
Compare and contrast key facts about Direxion Daily Financial Bear 3X Shares (FAZ) and Direxion Daily Small Cap Bear 3X Shares (TZA).
FAZ and TZA are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FAZ is a passively managed fund by Direxion that tracks the performance of the Russell 1000 Financial Services Index (-300%). It was launched on Nov 6, 2008. TZA is a passively managed fund by Direxion that tracks the performance of the Russell 2000 Index (-300%). It was launched on Nov 5, 2008. Both FAZ and TZA are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: FAZ or TZA.
Key characteristics
| FAZ | TZA | |
|---|---|---|
| YTD Return | -55.07% | -44.71% |
| 1Y Return | -67.25% | -68.25% |
| 3Y Return (Ann) | -29.95% | -20.75% |
| 5Y Return (Ann) | -52.01% | -48.96% |
| 10Y Return (Ann) | -44.40% | -40.71% |
| Sharpe Ratio | -1.64 | -1.05 |
| Sortino Ratio | -3.09 | -1.85 |
| Omega Ratio | 0.65 | 0.78 |
| Calmar Ratio | -0.67 | -0.68 |
| Martin Ratio | -1.54 | -1.43 |
| Ulcer Index | 43.65% | 47.56% |
| Daily Std Dev | 41.00% | 64.71% |
| Max Drawdown | -100.00% | -100.00% |
| Current Drawdown | -100.00% | -100.00% |
Correlation
The correlation between FAZ and TZA is 0.79, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
FAZ vs. TZA - Performance Comparison
In the year-to-date period, FAZ achieves a -55.07% return, which is significantly lower than TZA's -44.71% return. Over the past 10 years, FAZ has underperformed TZA with an annualized return of -44.40%, while TZA has yielded a comparatively higher -40.71% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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FAZ vs. TZA - Expense Ratio Comparison
FAZ has a 1.07% expense ratio, which is lower than TZA's 1.11% expense ratio.
Risk-Adjusted Performance
FAZ vs. TZA - Risk-Adjusted Performance 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.
Dividends
FAZ vs. TZA - Dividend Comparison
FAZ's dividend yield for the trailing twelve months is around 8.62%, more than TZA's 6.83% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 8.62% | 4.88% | 0.00% | 0.00% | 0.62% | 1.62% | 0.57% |
TZA Direxion Daily Small Cap Bear 3X Shares | 6.83% | 5.49% | 0.00% | 0.00% | 1.21% | 1.57% | 0.63% |
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. For additional features, visit the drawdowns tool.
Volatility
FAZ vs. TZA - Volatility Comparison
Direxion Daily Financial Bear 3X Shares (FAZ) and Direxion Daily Small Cap Bear 3X Shares (TZA) have volatilities of 22.86% and 24.00%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.