TZA vs. FAZ
TZA (Direxion Daily Small Cap Bear 3X Shares) and FAZ (Direxion Daily Financial Bear 3X Shares) are both Leveraged Equities funds from Direxion - TZA tracks the Russell 2000 Index (-300%) while FAZ tracks the Russell 1000 Financial Services Index (-300%). Both are passively managed. Over the past 10 years, TZA returned -44.17%/yr vs -44.72%/yr for FAZ. A 0.79 correlation means they provide meaningful diversification when combined. TZA charges 1.11%/yr vs 1.07%/yr for FAZ.
Performance
TZA vs. FAZ - Performance Comparison
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Returns By Period
In the year-to-date period, TZA achieves a -46.35% return, which is significantly lower than FAZ's 1.40% return. Both investments have delivered pretty close results over the past 10 years, with TZA having a -44.17% annualized return and FAZ not far behind at -44.72%.
TZA
- 1D
- 2.05%
- 1M
- -12.69%
- YTD
- -46.35%
- 6M
- -42.28%
- 1Y
- -67.58%
- 3Y*
- -46.88%
- 5Y*
- -30.52%
- 10Y*
- -44.17%
FAZ
- 1D
- -1.75%
- 1M
- -12.03%
- YTD
- 1.40%
- 6M
- 5.46%
- 1Y
- -17.74%
- 3Y*
- -40.57%
- 5Y*
- -30.61%
- 10Y*
- -44.72%
TZA vs. FAZ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TZA Direxion Daily Small Cap Bear 3X Shares | -46.35% | -40.22% | -32.22% | -41.19% | 30.21% | -50.80% | -80.43% | -53.25% | 25.06% | -38.19% |
FAZ Direxion Daily Financial Bear 3X Shares | 1.40% | -37.21% | -51.01% | -26.67% | 1.16% | -67.05% | -73.90% | -58.62% | 16.84% | -46.18% |
Correlation
The correlation between TZA and FAZ is 0.58, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.58 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.67 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.74 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.76 |
Correlation (All Time) Calculated using the full available price history since Nov 19, 2008 | 0.79 |
Over the past year, the correlation between TZA and FAZ has dropped to 0.58 - well below their long-term average of 0.79, suggesting their price drivers have been diverging.
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Return for Risk
TZA vs. FAZ — Risk / Return Rank
TZA
FAZ
TZA vs. FAZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Small Cap Bear 3X Shares (TZA) 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.
| TZA | FAZ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.75 | ||
| Sortino ratioReturn per unit of downside risk | -1.79 | ||
| Omega ratioGain probability vs. loss probability | 0.77 | 0.96 | -0.19 |
| Calmar ratioReturn relative to maximum drawdown | -1.00 | -0.56 | -0.43 |
| Martin ratioReturn relative to average drawdown | -1.56 | -1.26 | -0.30 |
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Drawdowns
TZA vs. FAZ - Drawdown Comparison
The maximum TZA drawdown since its inception was -100.00%, roughly equal to the maximum FAZ drawdown of -100.00%. Use the drawdown chart below to compare losses from any high point for TZA and FAZ.
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Drawdown Indicators
| TZA | FAZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -100.00% | 0.00% |
Max Drawdown (1Y)Largest decline over 1 year | -68.07% | -31.57% | -36.50% |
Max Drawdown (3Y)Largest decline over 3 years | -89.28% | -83.61% | -5.67% |
Max Drawdown (5Y)Largest decline over 5 years | -91.56% | -87.53% | -4.03% |
Max Drawdown (10Y)Largest decline over 10 years | -99.74% | -99.78% | +0.04% |
Current DrawdownCurrent decline from peak | -100.00% | -100.00% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -97.99% | -99.12% | +1.13% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 43.46% | 14.64% | +28.82% |
Volatility
TZA vs. FAZ - Volatility Comparison
Direxion Daily Small Cap Bear 3X Shares (TZA) has a higher volatility of 19.17% compared to Direxion Daily Financial Bear 3X Shares (FAZ) at 12.48%. This indicates that TZA'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
| TZA | FAZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 19.17% | 12.48% | +6.69% |
Volatility (6M)Calculated over the trailing 6-month period | 42.84% | 33.25% | +9.59% |
Volatility (1Y)Calculated over the trailing 1-year period | 58.62% | 43.64% | +14.98% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 67.66% | 55.67% | +11.99% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 68.98% | 61.93% | +7.05% |
TZA vs. FAZ - Expense Ratio Comparison
TZA has a 1.11% expense ratio, which is higher than FAZ's 1.07% expense ratio.
Dividends
TZA vs. FAZ - Dividend Comparison
TZA's dividend yield for the trailing twelve months is around 5.35%, more than FAZ's 3.35% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 3.35% | 5.07% | 7.34% | 4.88% | 0.00% | 0.00% | 0.62% | 1.63% | 0.56% |
TZA Direxion Daily Small Cap Bear 3X Shares | 5.35% | 5.08% | 5.40% | 5.49% | 0.00% | 0.00% | 1.21% | 1.56% | 0.63% |
Frequently Asked Questions
TZA and FAZ have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TZA has higher volatility (19.17%) compared to FAZ (12.48%). In terms of maximum drawdown, TZA dropped -100.00% vs FAZ's -100.00%.
On 10-year performance, TZA leads with -44.17% vs -44.72% for FAZ. On fees, FAZ is cheaper at 1.07% per year. On volatility, FAZ has been the lower-risk option at 12.48%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, TZA has performed better with a -44.17% return vs -44.72%. 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 1.11% for TZA.
TZA has the higher dividend yield at 5.35%, compared with 3.35% for FAZ.
TZA tracks Russell 2000 Index (-300%), while FAZ tracks Russell 1000 Financial Services Index (-300%). Their fees differ too: 1.11% for TZA and 1.07% for FAZ.
FAZ currently has the higher Sharpe Ratio (-0.41 vs -1.16), 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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