FAZ vs. VFH
FAZ (Direxion Daily Financial Bear 3X Shares) and VFH (Vanguard Financials ETF) are both exchange-traded funds - FAZ is a Leveraged Equities fund tracking the Russell 1000 Financial Services Index (-300%), while VFH is a Financials Equities fund tracking the MSCI US Investable Market Financials 25/50 Index. Both are passively managed. Over the past 10 years, FAZ returned -44.72%/yr vs 13.51%/yr for VFH. At a correlation of -0.98, they often move in opposite directions. FAZ charges 1.07%/yr vs 0.09%/yr for VFH.
Performance
FAZ vs. VFH - Performance Comparison
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Returns By Period
In the year-to-date period, FAZ achieves a 1.40% return, which is significantly higher than VFH's -0.29% return. Over the past 10 years, FAZ has underperformed VFH with an annualized return of -44.72%, while VFH has yielded a comparatively higher 13.51% annualized return.
FAZ
- 1D
- -1.75%
- 1M
- -12.03%
- YTD
- 1.40%
- 6M
- 5.46%
- 1Y
- -17.74%
- 3Y*
- -40.57%
- 5Y*
- -30.61%
- 10Y*
- -44.72%
VFH
- 1D
- 0.40%
- 1M
- 4.17%
- YTD
- -0.29%
- 6M
- -1.61%
- 1Y
- 8.93%
- 3Y*
- 21.01%
- 5Y*
- 10.11%
- 10Y*
- 13.51%
FAZ vs. VFH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 1.40% | -37.21% | -51.01% | -26.67% | 1.16% | -67.05% | -73.90% | -58.62% | 16.84% | -46.18% |
VFH Vanguard Financials ETF | -0.29% | 14.91% | 30.44% | 14.17% | -12.31% | 35.22% | -1.96% | 31.57% | -13.52% | 19.99% |
Correlation
The correlation between FAZ and VFH is -0.99, 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 | -0.99 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.99 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.99 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.97 |
Correlation (All Time) Calculated using the full available price history since Nov 19, 2008 | -0.98 |
The correlation between FAZ and VFH has been stable across timeframes, ranging from -0.99 to -0.97 - a consistent structural relationship.
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Return for Risk
FAZ vs. VFH — Risk / Return Rank
FAZ
VFH
FAZ vs. VFH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Financial Bear 3X Shares (FAZ) and Vanguard Financials ETF (VFH). 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 | VFH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.01 | ||
| Sortino ratioReturn per unit of downside risk | -1.25 | ||
| Omega ratioGain probability vs. loss probability | 0.96 | 1.11 | -0.15 |
| Calmar ratioReturn relative to maximum drawdown | -0.56 | 0.61 | -1.17 |
| Martin ratioReturn relative to average drawdown | -1.26 | 1.58 | -2.84 |
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Drawdowns
FAZ vs. VFH - Drawdown Comparison
The maximum FAZ drawdown since its inception was -100.00%, which is greater than VFH's maximum drawdown of -78.61%. Use the drawdown chart below to compare losses from any high point for FAZ and VFH.
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Drawdown Indicators
| FAZ | VFH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -78.61% | -21.39% |
Max Drawdown (1Y)Largest decline over 1 year | -31.57% | -14.75% | -16.82% |
Max Drawdown (3Y)Largest decline over 3 years | -83.61% | -17.30% | -66.31% |
Max Drawdown (5Y)Largest decline over 5 years | -87.53% | -25.66% | -61.87% |
Max Drawdown (10Y)Largest decline over 10 years | -99.78% | -44.42% | -55.36% |
Current DrawdownCurrent decline from peak | -100.00% | -3.32% | -96.68% |
Average DrawdownAverage peak-to-trough decline | -99.12% | -18.51% | -80.61% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 14.64% | 5.67% | +8.97% |
Volatility
FAZ vs. VFH - Volatility Comparison
Direxion Daily Financial Bear 3X Shares (FAZ) has a higher volatility of 12.48% compared to Vanguard Financials ETF (VFH) at 4.19%. This indicates that FAZ's price experiences larger fluctuations and is considered to be riskier than VFH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAZ | VFH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.48% | 4.19% | +8.29% |
Volatility (6M)Calculated over the trailing 6-month period | 33.25% | 11.42% | +21.83% |
Volatility (1Y)Calculated over the trailing 1-year period | 43.64% | 14.95% | +28.69% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 55.67% | 19.26% | +36.41% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 61.93% | 22.50% | +39.43% |
FAZ vs. VFH - Expense Ratio Comparison
FAZ has a 1.07% expense ratio, which is higher than VFH's 0.09% expense ratio.
Dividends
FAZ vs. VFH - Dividend Comparison
FAZ's dividend yield for the trailing twelve months is around 3.35%, more than VFH's 1.47% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 3.35% | 5.07% | 7.34% | 4.88% | 0.00% | 0.00% | 0.62% | 1.63% | 0.56% | 0.00% | 0.00% | 0.00% |
VFH Vanguard Financials ETF | 1.47% | 1.55% | 1.75% | 2.08% | 2.31% | 1.87% | 2.21% | 2.17% | 2.30% | 1.53% | 1.63% | 2.00% |
Frequently Asked Questions
FAZ and VFH have a correlation of -0.99, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAZ has higher volatility (12.48%) compared to VFH (4.19%). In terms of maximum drawdown, FAZ dropped -100.00% vs VFH's -78.61%.
On 10-year performance, VFH leads with 13.51% vs -44.72% for FAZ. On fees, VFH is cheaper at 0.09% per year. On volatility, VFH has been the lower-risk option at 4.19%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VFH has performed better with a 13.51% return vs -44.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VFH is cheaper with a 0.09% expense ratio, compared with 1.07% for FAZ.
FAZ has the higher dividend yield at 3.35%, compared with 1.47% for VFH.
FAZ is categorized as Leveraged Equities, while VFH is Financials Equities. FAZ tracks Russell 1000 Financial Services Index (-300%), while VFH tracks MSCI US Investable Market Financials 25/50 Index. They also come from different issuers: Direxion and Vanguard. Their fees differ too: 1.07% for FAZ and 0.09% for VFH.
VFH currently has the higher Sharpe Ratio (0.60 vs -0.41), 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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