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 -43.35%/yr vs -43.00%/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 -42.59% return, which is significantly lower than FAZ's 18.57% return. Both investments have delivered pretty close results over the past 10 years, with TZA having a -43.35% annualized return and FAZ not far ahead at -43.00%.
TZA
- 1D
- -2.73%
- 1M
- -12.86%
- YTD
- -42.59%
- 6M
- -43.80%
- 1Y
- -68.39%
- 3Y*
- -45.37%
- 5Y*
- -30.81%
- 10Y*
- -43.35%
FAZ
- 1D
- -0.15%
- 1M
- 3.55%
- YTD
- 18.57%
- 6M
- 6.21%
- 1Y
- -3.61%
- 3Y*
- -37.43%
- 5Y*
- -26.62%
- 10Y*
- -43.00%
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 | -42.59% | -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 | 18.57% | -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 0.61, 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 | 0.61 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.68 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.75 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.76 |
Correlation (All Time) Calculated using the full available price history since Nov 20, 2008 | 0.79 |
The correlation between TZA and FAZ shifts across timeframes, from 0.61 (1 year) to 0.79 (all time), reflecting how their relationship changes across market environments.
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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.
| TZA | FAZ | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | -1.20 | -0.08 | -1.12 |
Sortino ratioReturn per unit of downside risk | -2.25 | 0.19 | -2.45 |
Omega ratioGain probability vs. loss probability | 0.76 | 1.02 | -0.26 |
Calmar ratioReturn relative to maximum drawdown | -1.00 | -0.13 | -0.88 |
Martin ratioReturn relative to average drawdown | -1.52 | -0.23 | -1.29 |
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
| TZA | FAZ | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -1.20 | -0.08 | -1.12 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.46 | -0.48 | +0.02 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.63 | -0.69 | +0.06 |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.71 | -0.72 | +0.01 |
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 | -67.28% | -30.20% | -37.08% |
Max Drawdown (3Y)Largest decline over 3 years | -88.34% | -83.61% | -4.73% |
Max Drawdown (5Y)Largest decline over 5 years | -90.83% | -87.53% | -3.30% |
Max Drawdown (10Y)Largest decline over 10 years | -99.71% | -99.78% | +0.07% |
Current DrawdownCurrent decline from peak | -100.00% | -100.00% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -98.00% | -99.14% | +1.14% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 45.20% | 16.55% | +28.65% |
Volatility
TZA vs. FAZ - Volatility Comparison
Direxion Daily Small Cap Bear 3X Shares (TZA) has a higher volatility of 16.58% compared to Direxion Daily Financial Bear 3X Shares (FAZ) at 8.85%. 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 | 16.58% | 8.85% | +7.73% |
Volatility (6M)Calculated over the trailing 6-month period | 40.62% | 32.10% | +8.52% |
Volatility (1Y)Calculated over the trailing 1-year period | 56.90% | 42.95% | +13.95% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 67.42% | 55.81% | +11.61% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 68.91% | 62.07% | +6.84% |
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 5.00%, more than FAZ's 2.87% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
FAZ Direxion Daily Financial Bear 3X Shares | 2.87% | 5.07% | 7.34% | 4.88% | 0.00% | 0.00% | 0.62% | 1.63% | 0.56% |
TZA Direxion Daily Small Cap Bear 3X Shares | 5.00% | 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 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TZA has higher volatility (16.58%) compared to FAZ (8.85%). In terms of maximum drawdown, TZA dropped -100.00% vs FAZ's -100.00%.
On 10-year performance, FAZ leads with -43.00% vs -43.35% for TZA. On fees, FAZ is cheaper at 1.07% per year. On volatility, FAZ has been the lower-risk option at 8.85%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FAZ has performed better with a -43.00% return vs -43.35%. 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 5.00%, compared with 2.87% 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 (-0.08 vs -1.20), 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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