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 -42.71%/yr vs -44.22%/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 -44.60% return, which is significantly lower than FAZ's -9.37% return. Both investments have delivered pretty close results over the past 10 years, with TZA having a -42.71% annualized return and FAZ not far behind at -44.22%.
TZA
- 1D
- 2.26%
- 1M
- -0.96%
- 6M
- -33.75%
- YTD
- -44.60%
- 1Y
- -61.49%
- 3Y*
- -42.97%
- 5Y*
- -32.31%
- 10Y*
- -42.71%
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%
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 | -44.60% | -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 | -9.37% | -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 0.54, 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 | 0.54 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.66 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.74 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.75 |
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 0.54 - 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 | -0.59 | ||
| Sortino ratioReturn per unit of downside risk | -1.33 | ||
| Omega ratioGain probability vs. loss probability | 0.80 | 0.95 | -0.14 |
| Calmar ratioReturn relative to maximum drawdown | -0.92 | -0.54 | -0.37 |
| Martin ratioReturn relative to average drawdown | -1.41 | -1.31 | -0.10 |
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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 | -67.34% | -38.56% | -28.78% |
Max Drawdown (3Y)Largest decline over 3 years | -89.50% | -83.83% | -5.67% |
Max Drawdown (5Y)Largest decline over 5 years | -91.74% | -87.70% | -4.04% |
Max Drawdown (10Y)Largest decline over 10 years | -99.67% | -99.71% | +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 | 43.61% | 15.97% | +27.64% |
Volatility
TZA vs. FAZ - Volatility Comparison
Direxion Daily Small Cap Bear 3X Shares (TZA) has a higher volatility of 14.74% compared to Direxion Daily Financial Bear 3X Shares (FAZ) at 12.94%. 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 | 14.74% | 12.94% | +1.80% |
Volatility (6M)Calculated over the trailing 6-month period | 42.49% | 33.63% | +8.86% |
Volatility (1Y)Calculated over the trailing 1-year period | 58.13% | 44.06% | +14.07% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 67.54% | 55.56% | +11.98% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 68.81% | 61.85% | +6.96% |
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 4.78%, more than FAZ's 3.41% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
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% |
TZA Direxion Daily Small Cap Bear 3X Shares | 4.78% | 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 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TZA has higher volatility (14.74%) compared to FAZ (12.94%). In terms of maximum drawdown, TZA dropped -100.00% vs FAZ's -100.00%.
On 10-year performance, TZA leads with -42.71% vs -44.22% for FAZ. On fees, FAZ is cheaper at 1.07% 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, TZA has performed better with a -42.71% return vs -44.22%. 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 4.78%, compared with 3.41% 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 (-0.48 vs -1.06), 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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