LABU vs. FAZ
LABU (Direxion Daily S&P Biotech Bull 3x Shares) and FAZ (Direxion Daily Financial Bear 3X Shares) are both Leveraged Equities funds from Direxion - LABU tracks the S&P Biotechnology Select Industry Index (300%) while FAZ tracks the Russell 1000 Financial Services Index (-300%). Both are passively managed. Over the past 10 years, LABU returned -13.53%/yr vs -42.81%/yr for FAZ. At a correlation of -0.45, they often move in opposite directions. LABU charges 1.12%/yr vs 1.07%/yr for FAZ.
Performance
LABU vs. FAZ - Performance Comparison
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Returns By Period
In the year-to-date period, LABU achieves a 3.80% return, which is significantly lower than FAZ's 22.66% return. Over the past 10 years, LABU has outperformed FAZ with an annualized return of -13.53%, while FAZ has yielded a comparatively lower -42.81% annualized return.
LABU
- 1D
- 4.61%
- 1M
- -11.09%
- YTD
- 3.80%
- 6M
- 3.63%
- 1Y
- 195.85%
- 3Y*
- 7.82%
- 5Y*
- -32.76%
- 10Y*
- -13.53%
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%
LABU vs. FAZ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LABU Direxion Daily S&P Biotech Bull 3x Shares | 3.80% | 79.17% | -26.02% | -13.41% | -80.36% | -64.15% | 74.66% | 75.50% | -57.61% | 149.12% |
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% |
Correlation
The correlation between LABU and FAZ is -0.36, 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 | -0.36 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.42 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.45 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.44 |
Correlation (All Time) Calculated using the full available price history since May 29, 2015 | -0.45 |
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Return for Risk
LABU vs. FAZ — Risk / Return Rank
LABU
FAZ
LABU vs. FAZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily S&P Biotech Bull 3x Shares (LABU) and Direxion Daily Financial Bear 3X Shares (FAZ). 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.
| LABU | FAZ | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 2.60 | 0.01 | +2.59 |
Sortino ratioReturn per unit of downside risk | 2.93 | 0.34 | +2.59 |
Omega ratioGain probability vs. loss probability | 1.35 | 1.04 | +0.31 |
Calmar ratioReturn relative to maximum drawdown | 6.42 | 0.02 | +6.40 |
Martin ratioReturn relative to average drawdown | 18.77 | 0.03 | +18.73 |
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
| LABU | FAZ | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.60 | 0.01 | +2.59 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.34 | -0.47 | +0.12 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.14 | -0.69 | +0.55 |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.24 | -0.72 | +0.48 |
Drawdowns
LABU vs. FAZ - Drawdown Comparison
The maximum LABU drawdown since its inception was -99.18%, roughly equal to the maximum FAZ drawdown of -100.00%. Use the drawdown chart below to compare losses from any high point for LABU and FAZ.
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Drawdown Indicators
| LABU | FAZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -99.18% | -100.00% | +0.82% |
Max Drawdown (1Y)Largest decline over 1 year | -30.70% | -30.20% | -0.50% |
Max Drawdown (3Y)Largest decline over 3 years | -78.30% | -83.61% | +5.31% |
Max Drawdown (5Y)Largest decline over 5 years | -97.59% | -87.53% | -10.06% |
Max Drawdown (10Y)Largest decline over 10 years | -98.96% | -99.78% | +0.82% |
Current DrawdownCurrent decline from peak | -96.34% | -100.00% | +3.66% |
Average DrawdownAverage peak-to-trough decline | -81.68% | -99.14% | +17.46% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 10.48% | 16.58% | -6.10% |
Volatility
LABU vs. FAZ - Volatility Comparison
Direxion Daily S&P Biotech Bull 3x Shares (LABU) has a higher volatility of 27.83% compared to Direxion Daily Financial Bear 3X Shares (FAZ) at 9.30%. This indicates that LABU's price experiences larger fluctuations and is considered to be riskier than FAZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LABU | FAZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 27.83% | 9.30% | +18.53% |
Volatility (6M)Calculated over the trailing 6-month period | 59.70% | 32.18% | +27.52% |
Volatility (1Y)Calculated over the trailing 1-year period | 75.91% | 43.09% | +32.82% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 95.58% | 55.83% | +39.75% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 95.42% | 62.07% | +33.35% |
LABU vs. FAZ - Expense Ratio Comparison
LABU has a 1.12% expense ratio, which is higher than FAZ's 1.07% expense ratio.
Dividends
LABU vs. FAZ - Dividend Comparison
LABU's dividend yield for the trailing twelve months is around 0.74%, less than FAZ's 2.77% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
LABU Direxion Daily S&P Biotech Bull 3x Shares | 0.74% | 0.84% | 0.35% | 0.35% | 0.00% | 0.00% | 0.00% | 0.28% | 0.64% | 0.17% |
Frequently Asked Questions
LABU and FAZ have a correlation of -0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LABU has higher volatility (27.83%) compared to FAZ (9.30%). In terms of maximum drawdown, LABU dropped -99.18% vs FAZ's -100.00%.
On 10-year performance, LABU leads with -13.53% vs -42.81% for FAZ. On fees, FAZ is cheaper at 1.07% per year. On volatility, FAZ has been the lower-risk option at 9.30%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, LABU has performed better with a -13.53% return vs -42.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FAZ is cheaper with a 1.07% expense ratio, compared with 1.12% for LABU.
FAZ has the higher dividend yield at 2.77%, compared with 0.74% for LABU.
LABU tracks S&P Biotechnology Select Industry Index (300%), while FAZ tracks Russell 1000 Financial Services Index (-300%). Their fees differ too: 1.12% for LABU and 1.07% for FAZ.
LABU currently has the higher Sharpe Ratio (2.60 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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