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 -8.25%/yr vs -44.22%/yr for FAZ. At a correlation of -0.44, they often move in opposite directions. LABU charges 0.96%/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 71.18% return, which is significantly higher than FAZ's -9.37% return. Over the past 10 years, LABU has outperformed FAZ with an annualized return of -8.25%, while FAZ has yielded a comparatively lower -44.22% annualized return.
LABU
- 1D
- -7.15%
- 1M
- 52.75%
- 6M
- 65.05%
- YTD
- 71.18%
- 1Y
- 322.17%
- 3Y*
- 31.36%
- 5Y*
- -25.04%
- 10Y*
- -8.25%
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%
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 | 71.18% | 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 | -9.37% | -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 -0.33, 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 | -0.33 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.41 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.45 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.43 |
Correlation (All Time) Calculated using the full available price history since May 28, 2015 | -0.44 |
The correlation between LABU and FAZ shifts across timeframes, from -0.45 (5 years) to -0.33 (1 year), reflecting how their relationship changes across market environments.
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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.
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.
| LABU | FAZ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +4.56 | ||
| Sortino ratioReturn per unit of downside risk | +4.05 | ||
| Omega ratioGain probability vs. loss probability | 1.43 | 0.95 | +0.48 |
| Calmar ratioReturn relative to maximum drawdown | 10.57 | -0.54 | +11.11 |
| Martin ratioReturn relative to average drawdown | 29.65 | -1.31 | +30.96 |
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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% | -38.56% | +7.86% |
Max Drawdown (3Y)Largest decline over 3 years | -78.30% | -83.83% | +5.53% |
Max Drawdown (5Y)Largest decline over 5 years | -97.36% | -87.70% | -9.66% |
Max Drawdown (10Y)Largest decline over 10 years | -98.96% | -99.71% | +0.75% |
Current DrawdownCurrent decline from peak | -93.97% | -100.00% | +6.03% |
Average DrawdownAverage peak-to-trough decline | -81.77% | -99.12% | +17.35% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 10.92% | 15.97% | -5.05% |
Volatility
LABU vs. FAZ - Volatility Comparison
Direxion Daily S&P Biotech Bull 3x Shares (LABU) has a higher volatility of 24.02% compared to Direxion Daily Financial Bear 3X Shares (FAZ) at 12.94%. 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 | 24.02% | 12.94% | +11.08% |
Volatility (6M)Calculated over the trailing 6-month period | 63.24% | 33.63% | +29.61% |
Volatility (1Y)Calculated over the trailing 1-year period | 79.59% | 44.06% | +35.53% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 96.05% | 55.56% | +40.49% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 95.24% | 61.85% | +33.39% |
LABU vs. FAZ - Expense Ratio Comparison
LABU has a 0.96% expense ratio, which is lower than FAZ's 1.07% expense ratio.
Dividends
LABU vs. FAZ - Dividend Comparison
LABU's dividend yield for the trailing twelve months is around 0.37%, less than FAZ's 3.41% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
LABU Direxion Daily S&P Biotech Bull 3x Shares | 0.37% | 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 -0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LABU has higher volatility (24.02%) compared to FAZ (12.94%). In terms of maximum drawdown, LABU dropped -99.18% vs FAZ's -100.00%.
On 10-year performance, LABU leads with -8.25% vs -44.22% for FAZ. On fees, LABU is cheaper at 0.96% per year. On volatility, FAZ has been the lower-risk option at 12.94%. 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 -8.25% return vs -44.22%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
LABU is cheaper with a 0.96% expense ratio, compared with 1.07% for FAZ.
FAZ has the higher dividend yield at 3.41%, compared with 0.37% for LABU.
LABU tracks S&P Biotechnology Select Industry Index (300%), while FAZ tracks Russell 1000 Financial Services Index (-300%). Their fees differ too: 0.96% for LABU and 1.07% for FAZ.
LABU currently has the higher Sharpe Ratio (4.09 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.
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