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 -42.81%/yr vs 12.20%/yr for VFH. At a correlation of -0.98, they often move in opposite directions. FAZ charges 1.07%/yr vs 0.10%/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 22.66% return, which is significantly higher than VFH's -6.40% return. Over the past 10 years, FAZ has underperformed VFH with an annualized return of -42.81%, while VFH has yielded a comparatively higher 12.20% 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%
VFH
- 1D
- -1.39%
- 1M
- -1.74%
- YTD
- -6.40%
- 6M
- -3.96%
- 1Y
- 2.39%
- 3Y*
- 18.44%
- 5Y*
- 7.83%
- 10Y*
- 12.20%
FAZ vs. VFH - 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% |
VFH Vanguard Financials ETF | -6.40% | 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 20, 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.
| FAZ | VFH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.15 | ||
| Sortino ratioReturn per unit of downside risk | +0.03 | ||
| Omega ratioGain probability vs. loss probability | 1.04 | 1.04 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 0.02 | 0.16 | -0.14 |
| Martin ratioReturn relative to average drawdown | 0.03 | 0.43 | -0.40 |
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 | VFH | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.01 | 0.16 | -0.15 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.47 | 0.41 | -0.88 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.69 | 0.54 | -1.23 |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.72 | 0.24 | -0.96 |
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 | -30.20% | -14.75% | -15.45% |
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% | -9.24% | -90.76% |
Average DrawdownAverage peak-to-trough decline | -99.14% | -18.54% | -80.60% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 16.58% | 5.55% | +11.03% |
Volatility
FAZ vs. VFH - Volatility Comparison
Direxion Daily Financial Bear 3X Shares (FAZ) has a higher volatility of 9.30% compared to Vanguard Financials ETF (VFH) at 3.34%. 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 | 9.30% | 3.34% | +5.96% |
Volatility (6M)Calculated over the trailing 6-month period | 32.18% | 11.10% | +21.08% |
Volatility (1Y)Calculated over the trailing 1-year period | 43.09% | 14.79% | +28.30% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 55.83% | 19.31% | +36.52% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 62.07% | 22.54% | +39.53% |
FAZ vs. VFH - Expense Ratio Comparison
FAZ has a 1.07% expense ratio, which is higher than VFH's 0.10% expense ratio.
Dividends
FAZ vs. VFH - Dividend Comparison
FAZ's dividend yield for the trailing twelve months is around 2.77%, more than VFH's 1.56% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% | 0.00% | 0.00% |
VFH Vanguard Financials ETF | 1.56% | 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 (9.30%) compared to VFH (3.34%). In terms of maximum drawdown, FAZ dropped -100.00% vs VFH's -78.61%.
On 10-year performance, VFH leads with 12.20% vs -42.81% for FAZ. On fees, VFH is cheaper at 0.10% per year. On volatility, VFH has been the lower-risk option at 3.34%. 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 12.20% return vs -42.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VFH is cheaper with a 0.10% expense ratio, compared with 1.07% for FAZ.
FAZ has the higher dividend yield at 2.77%, compared with 1.56% 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 0.10% for VFH.
VFH currently has the higher Sharpe Ratio (0.16 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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