FAZ vs. XLF
FAZ (Direxion Daily Financial Bear 3X Shares) and XLF (State Street Financial Select Sector SPDR ETF) are both exchange-traded funds - FAZ is a Leveraged Equities fund tracking the Russell 1000 Financial Services Index (-300%), while XLF is a Financials Equities fund tracking the Financial Select Sector Index. Both are passively managed. Over the past 10 years, FAZ returned -44.22%/yr vs 13.45%/yr for XLF. At a correlation of -0.98, they often move in opposite directions. FAZ charges 1.07%/yr vs 0.08%/yr for XLF.
Performance
FAZ vs. XLF - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, FAZ achieves a -9.37% return, which is significantly lower than XLF's 3.26% return. Over the past 10 years, FAZ has underperformed XLF with an annualized return of -44.22%, while XLF has yielded a comparatively higher 13.45% annualized return.
FAZ
- 1D
- -1.91%
- 1M
- -14.72%
- 6M
- -6.80%
- YTD
- -9.37%
- 1Y
- -20.83%
- 3Y*
- -40.21%
- 5Y*
- -32.04%
- 10Y*
- -44.22%
XLF
- 1D
- 0.65%
- 1M
- 5.49%
- 6M
- 2.29%
- YTD
- 3.26%
- 1Y
- 9.17%
- 3Y*
- 19.74%
- 5Y*
- 10.87%
- 10Y*
- 13.45%
FAZ vs. XLF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | -9.37% | -37.21% | -51.01% | -26.67% | 1.16% | -67.05% | -73.90% | -58.62% | 16.84% | -46.18% |
XLF State Street Financial Select Sector SPDR ETF | 3.26% | 14.90% | 30.56% | 12.03% | -10.59% | 34.80% | -1.74% | 31.88% | -13.06% | 22.00% |
Correlation
The correlation between FAZ and XLF is -1.00, 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 | -1.00 |
Correlation (3Y) Calculated over the trailing 3-year period | -1.00 |
Correlation (5Y) Calculated over the trailing 5-year period | -1.00 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.98 |
Correlation (All Time) Calculated using the full available price history since Nov 19, 2008 | -0.98 |
The correlation between FAZ and XLF has been stable across timeframes, ranging from -1.00 to -0.98 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
FAZ vs. XLF — Risk / Return Rank
FAZ
XLF
FAZ vs. XLF - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Financial Bear 3X Shares (FAZ) and State Street Financial Select Sector SPDR ETF (XLF). 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 | XLF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.10 | ||
| Sortino ratioReturn per unit of downside risk | -1.39 | ||
| Omega ratioGain probability vs. loss probability | 0.95 | 1.12 | -0.17 |
| Calmar ratioReturn relative to maximum drawdown | -0.54 | 0.62 | -1.16 |
| Martin ratioReturn relative to average drawdown | -1.31 | 1.58 | -2.89 |
Loading charts...
Drawdowns
FAZ vs. XLF - Drawdown Comparison
The maximum FAZ drawdown since its inception was -100.00%, which is greater than XLF's maximum drawdown of -82.69%. Use the drawdown chart below to compare losses from any high point for FAZ and XLF.
Loading charts...
Drawdown Indicators
| FAZ | XLF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -82.69% | -17.31% |
Max Drawdown (1Y)Largest decline over 1 year | -38.56% | -14.79% | -23.77% |
Max Drawdown (3Y)Largest decline over 3 years | -83.83% | -15.54% | -68.29% |
Max Drawdown (5Y)Largest decline over 5 years | -87.70% | -25.81% | -61.89% |
Max Drawdown (10Y)Largest decline over 10 years | -99.71% | -42.86% | -56.85% |
Current DrawdownCurrent decline from peak | -100.00% | -0.12% | -99.88% |
Average DrawdownAverage peak-to-trough decline | -99.12% | -19.96% | -79.16% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 15.97% | 5.81% | +10.16% |
Volatility
FAZ vs. XLF - Volatility Comparison
Direxion Daily Financial Bear 3X Shares (FAZ) has a higher volatility of 12.94% compared to State Street Financial Select Sector SPDR ETF (XLF) at 4.27%. This indicates that FAZ's price experiences larger fluctuations and is considered to be riskier than XLF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| FAZ | XLF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.94% | 4.27% | +8.67% |
Volatility (6M)Calculated over the trailing 6-month period | 33.63% | 11.42% | +22.21% |
Volatility (1Y)Calculated over the trailing 1-year period | 44.06% | 14.77% | +29.29% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 55.56% | 18.53% | +37.03% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 61.85% | 22.07% | +39.78% |
FAZ vs. XLF - Expense Ratio Comparison
FAZ has a 1.07% expense ratio, which is higher than XLF's 0.08% expense ratio.
Dividends
FAZ vs. XLF - Dividend Comparison
FAZ's dividend yield for the trailing twelve months is around 3.41%, more than XLF's 1.44% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 3.41% | 5.07% | 7.34% | 4.88% | 0.00% | 0.00% | 0.62% | 1.63% | 0.56% | 0.00% | 0.00% | 0.00% |
XLF State Street Financial Select Sector SPDR ETF | 1.44% | 1.31% | 1.42% | 1.71% | 2.04% | 1.63% | 2.03% | 1.87% | 2.08% | 1.48% | 21.10% | 1.95% |
Frequently Asked Questions
FAZ and XLF have a correlation of -1.00, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAZ has higher volatility (12.94%) compared to XLF (4.27%). In terms of maximum drawdown, FAZ dropped -100.00% vs XLF's -82.69%.
On 10-year performance, XLF leads with 13.45% vs -44.22% for FAZ. On fees, XLF is cheaper at 0.08% per year. On volatility, XLF has been the lower-risk option at 4.27%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLF has performed better with a 13.45% return vs -44.22%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLF is cheaper with a 0.08% expense ratio, compared with 1.07% for FAZ.
FAZ has the higher dividend yield at 3.41%, compared with 1.44% for XLF.
FAZ is categorized as Leveraged Equities, while XLF is Financials Equities. FAZ tracks Russell 1000 Financial Services Index (-300%), while XLF tracks Financial Select Sector Index. They also come from different issuers: Direxion and State Street. Their fees differ too: 1.07% for FAZ and 0.08% for XLF.
XLF currently has the higher Sharpe Ratio (0.62 vs -0.48), 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.
Find the right allocation for FAZ and XLF
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer