NAIL vs. FAAR
NAIL (Direxion Daily Homebuilders & Supplies Bull 3X Shares) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - NAIL is a Leveraged Equities fund tracking the Dow Jones U.S. Select Home Construction Index (300%), while FAAR is a Commodities fund actively managed by First Trust. NAIL is passively managed, while FAAR is actively managed. Over the past 10 years, NAIL returned 6.04%/yr vs 4.79%/yr for FAAR. At a correlation of -0.01, they often move in opposite directions. NAIL charges 0.99%/yr vs 0.95%/yr for FAAR.
Performance
NAIL vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, NAIL achieves a -12.64% return, which is significantly lower than FAAR's 20.23% return. Over the past 10 years, NAIL has outperformed FAAR with an annualized return of 6.04%, while FAAR has yielded a comparatively lower 4.79% annualized return.
NAIL
- 1D
- -5.42%
- 1M
- 19.86%
- YTD
- -12.64%
- 6M
- -17.03%
- 1Y
- -8.20%
- 3Y*
- -13.57%
- 5Y*
- -9.65%
- 10Y*
- 6.04%
FAAR
- 1D
- -0.05%
- 1M
- -4.34%
- YTD
- 20.23%
- 6M
- 19.92%
- 1Y
- 26.86%
- 3Y*
- 10.91%
- 5Y*
- 7.89%
- 10Y*
- 4.79%
NAIL vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
NAIL Direxion Daily Homebuilders & Supplies Bull 3X Shares | -12.64% | -40.43% | -22.83% | 259.61% | -75.23% | 168.20% | -32.08% | 184.63% | -73.96% | 268.71% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 20.23% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -1.28% | -9.17% | 5.00% |
Correlation
The correlation between NAIL and FAAR is -0.16, 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 | -0.16 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.06 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.05 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.01 |
Correlation (All Time) Calculated using the full available price history since May 23, 2016 | -0.01 |
The correlation between NAIL and FAAR shifts across timeframes, from -0.16 (1 year) to -0.01 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
NAIL vs. FAAR — Risk / Return Rank
NAIL
FAAR
NAIL vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL) and First Trust Alternative Absolute Return Strategy ETF (FAAR). 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.
| NAIL | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.11 | ||
| Sortino ratioReturn per unit of downside risk | -2.34 | ||
| Omega ratioGain probability vs. loss probability | 1.06 | 1.35 | -0.29 |
| Calmar ratioReturn relative to maximum drawdown | -0.12 | 4.75 | -4.87 |
| Martin ratioReturn relative to average drawdown | -0.20 | 14.70 | -14.90 |
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Drawdowns
NAIL vs. FAAR - Drawdown Comparison
The maximum NAIL drawdown since its inception was -93.75%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for NAIL and FAAR.
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Drawdown Indicators
| NAIL | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -93.75% | -18.03% | -75.72% |
Max Drawdown (1Y)Largest decline over 1 year | -67.85% | -5.68% | -62.17% |
Max Drawdown (3Y)Largest decline over 3 years | -82.09% | -11.54% | -70.55% |
Max Drawdown (5Y)Largest decline over 5 years | -84.40% | -18.03% | -66.37% |
Max Drawdown (10Y)Largest decline over 10 years | -93.75% | -18.03% | -75.72% |
Current DrawdownCurrent decline from peak | -75.04% | -5.43% | -69.61% |
Average DrawdownAverage peak-to-trough decline | -43.92% | -7.82% | -36.10% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 40.07% | 1.89% | +38.18% |
Volatility
NAIL vs. FAAR - Volatility Comparison
Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL) has a higher volatility of 24.70% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.47%. This indicates that NAIL's price experiences larger fluctuations and is considered to be riskier than FAAR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| NAIL | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 24.70% | 2.47% | +22.23% |
Volatility (6M)Calculated over the trailing 6-month period | 63.33% | 9.68% | +53.65% |
Volatility (1Y)Calculated over the trailing 1-year period | 89.10% | 13.37% | +75.73% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 87.50% | 12.95% | +74.55% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 89.47% | 11.53% | +77.94% |
NAIL vs. FAAR - Expense Ratio Comparison
NAIL has a 0.99% expense ratio, which is higher than FAAR's 0.95% expense ratio.
Dividends
NAIL vs. FAAR - Dividend Comparison
NAIL's dividend yield for the trailing twelve months is around 0.91%, less than FAAR's 9.57% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 9.57% | 11.63% | 3.45% | 3.20% | 5.82% | 6.49% | 3.05% | 1.02% | 0.58% | 2.83% |
NAIL Direxion Daily Homebuilders & Supplies Bull 3X Shares | 0.91% | 1.55% | 0.63% | 0.22% | 0.00% | 0.00% | 0.01% | 0.17% | 0.35% | 1.25% |
Frequently Asked Questions
NAIL and FAAR have a correlation of -0.16, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
NAIL has higher volatility (24.70%) compared to FAAR (2.47%). In terms of maximum drawdown, NAIL dropped -93.75% vs FAAR's -18.03%.
On 10-year performance, NAIL leads with 6.04% vs 4.79% for FAAR. On fees, FAAR is cheaper at 0.95% per year. On volatility, FAAR has been the lower-risk option at 2.47%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, NAIL has performed better with a 6.04% return vs 4.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FAAR is cheaper with a 0.95% expense ratio, compared with 0.99% for NAIL.
FAAR has the higher dividend yield at 9.57%, compared with 0.91% for NAIL.
NAIL is categorized as Leveraged Equities, while FAAR is Commodities. They also come from different issuers: Direxion and First Trust. Their fees differ too: 0.99% for NAIL and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.02 vs -0.09), 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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