FAZ vs. VOO
Compare and contrast key facts about Direxion Daily Financial Bear 3X Shares (FAZ) and Vanguard S&P 500 ETF (VOO).
FAZ and VOO 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. VOO is a passively managed fund by Vanguard that tracks the performance of the S&P 500 Index. It was launched on Sep 7, 2010. Both FAZ and VOO 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 VOO.
Key characteristics
| FAZ | VOO | |
|---|---|---|
| YTD Return | -55.07% | 26.88% |
| 1Y Return | -67.25% | 37.59% |
| 3Y Return (Ann) | -29.95% | 10.23% |
| 5Y Return (Ann) | -52.01% | 15.93% |
| 10Y Return (Ann) | -44.40% | 13.41% |
| Sharpe Ratio | -1.64 | 3.06 |
| Sortino Ratio | -3.09 | 4.08 |
| Omega Ratio | 0.65 | 1.58 |
| Calmar Ratio | -0.67 | 4.43 |
| Martin Ratio | -1.54 | 20.25 |
| Ulcer Index | 43.65% | 1.85% |
| Daily Std Dev | 41.00% | 12.23% |
| Max Drawdown | -100.00% | -33.99% |
| Current Drawdown | -100.00% | -0.30% |
Correlation
The correlation between FAZ and VOO is -0.84. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.
Performance
FAZ vs. VOO - Performance Comparison
In the year-to-date period, FAZ achieves a -55.07% return, which is significantly lower than VOO's 26.88% return. Over the past 10 years, FAZ has underperformed VOO with an annualized return of -44.40%, while VOO has yielded a comparatively higher 13.41% 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. VOO - Expense Ratio Comparison
FAZ has a 1.07% expense ratio, which is higher than VOO's 0.03% expense ratio.
Risk-Adjusted Performance
FAZ vs. VOO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Financial Bear 3X Shares (FAZ) and Vanguard S&P 500 ETF (VOO). 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. VOO - Dividend Comparison
FAZ's dividend yield for the trailing twelve months is around 8.62%, more than VOO's 1.23% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 8.62% | 4.88% | 0.00% | 0.00% | 0.62% | 1.62% | 0.57% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VOO Vanguard S&P 500 ETF | 1.23% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% | 1.85% | 1.84% |
Drawdowns
FAZ vs. VOO - Drawdown Comparison
The maximum FAZ drawdown since its inception was -100.00%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for FAZ and VOO. For additional features, visit the drawdowns tool.
Volatility
FAZ vs. VOO - Volatility Comparison
Direxion Daily Financial Bear 3X Shares (FAZ) has a higher volatility of 22.86% compared to Vanguard S&P 500 ETF (VOO) at 3.89%. This indicates that FAZ's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.