TZA vs. FXAIX

Last updated Jun 4, 2026

TZA (Direxion Daily Small Cap Bear 3X Shares) and FXAIX (Fidelity 500 Index Fund) are both funds - TZA is a Leveraged Equities fund tracking the Russell 2000 Index (-300%), while FXAIX is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, TZA returned -43.15%/yr vs 15.66%/yr for FXAIX. At a correlation of -0.83, they often move in opposite directions. TZA charges 1.11%/yr vs 0.02%/yr for FXAIX.

Performance

TZA vs. FXAIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Small Cap Bear 3X Shares (TZA) and Fidelity 500 Index Fund (FXAIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TZA achieves a -40.43% return, which is significantly lower than FXAIX's 11.71% return. Over the past 10 years, TZA has underperformed FXAIX with an annualized return of -43.15%, while FXAIX has yielded a comparatively higher 15.66% annualized return.

TZA

• 1D: 3.75%
• 1M: -10.87%
• YTD: -40.43%
• 6M: -38.50%
• 1Y: -65.59%
• 3Y*: -44.69%
• 5Y*: -30.11%
• 10Y*: -43.15%

FXAIX

• 1D: 0.13%
• 1M: 5.80%
• YTD: 11.71%
• 6M: 11.74%
• 1Y: 28.99%
• 3Y*: 22.75%
• 5Y*: 14.28%
• 10Y*: 15.66%

*Multi-year figures are annualized to reflect compound growth (CAGR)

TZA vs. FXAIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TZA Direxion Daily Small Cap Bear 3X Shares	-40.43%	-40.22%	-32.22%	-41.19%	30.21%	-50.80%	-80.43%	-53.25%	25.06%	-38.19%
FXAIX Fidelity 500 Index Fund	11.71%	17.84%	25.01%	26.29%	-18.14%	28.71%	18.42%	31.48%	-4.43%	21.82%

Correlation

The correlation between TZA and FXAIX is -0.79, 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	-0.79
Correlation (3Y) Calculated over the trailing 3-year period	-0.76
Correlation (5Y) Calculated over the trailing 5-year period	-0.82
Correlation (10Y) Calculated over the trailing 10-year period	-0.81
Correlation (All Time) Calculated using the full available price history since May 5, 2011	-0.83

The correlation between TZA and FXAIX has been stable across timeframes, ranging from -0.83 to -0.76 - a consistent structural relationship.

Return for Risk

TZA vs. FXAIX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TZA

TZA Risk / Return Rank: 1
TZA Sharpe Ratio Rank: 1
TZA Sortino Ratio Rank: 1
TZA Omega Ratio Rank: 1
TZA Calmar Ratio Rank: 1
TZA Martin Ratio Rank: 1

FXAIX

FXAIX Risk / Return Rank: 73
FXAIX Sharpe Ratio Rank: 76
FXAIX Sortino Ratio Rank: 67
FXAIX Omega Ratio Rank: 67
FXAIX Calmar Ratio Rank: 74
FXAIX Martin Ratio Rank: 83

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TZA vs. FXAIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Small Cap Bear 3X Shares (TZA) and Fidelity 500 Index Fund (FXAIX). 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	FXAIX	Difference
Sharpe ratio: Return per unit of total volatility	-1.16	2.52	-3.68
Sortino ratio: Return per unit of downside risk	-2.07	3.42	-5.50
Omega ratio: Gain probability vs. loss probability	0.78	1.46	-0.68
Calmar ratio: Return relative to maximum drawdown	-0.98	3.36	-4.34
Martin ratio: Return relative to average drawdown	-1.51	15.70	-17.20
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TZA vs. FXAIX - Sharpe Ratio Comparison

The current TZA Sharpe Ratio is -1.16, which is lower than the FXAIX Sharpe Ratio of 2.52. The chart below compares the historical Sharpe Ratios of TZA and FXAIX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	TZA	FXAIX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.16	2.52	-3.68
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.45	0.85	-1.30
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.63	0.87	-1.50
Sharpe Ratio (All Time) Calculated using the full available price history	-0.71	0.82	-1.54

Drawdowns

TZA vs. FXAIX - Drawdown Comparison

The maximum TZA drawdown since its inception was -100.00%, which is greater than FXAIX's maximum drawdown of -33.79%. Use the drawdown chart below to compare losses from any high point for TZA and FXAIX.

Drawdown Indicators

	TZA	FXAIX	Difference
Max Drawdown Largest peak-to-trough decline	-100.00%	-33.79%	-66.21%
Max Drawdown (1Y) Largest decline over 1 year	-67.28%	-8.89%	-58.39%
Max Drawdown (3Y) Largest decline over 3 years	-88.34%	-18.76%	-69.58%
Max Drawdown (5Y) Largest decline over 5 years	-90.83%	-24.50%	-66.33%
Max Drawdown (10Y) Largest decline over 10 years	-99.71%	-33.79%	-65.92%
Current Drawdown Current decline from peak	-100.00%	0.00%	-100.00%
Average Drawdown Average peak-to-trough decline	-98.00%	-3.79%	-94.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	43.51%	1.90%	+41.61%

Volatility

TZA vs. FXAIX - Volatility Comparison

Direxion Daily Small Cap Bear 3X Shares (TZA) has a higher volatility of 17.03% compared to Fidelity 500 Index Fund (FXAIX) at 2.83%. This indicates that TZA's price experiences larger fluctuations and is considered to be riskier than FXAIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TZA	FXAIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	17.03%	2.83%	+14.20%
Volatility (6M) Calculated over the trailing 6-month period	40.64%	8.97%	+31.67%
Volatility (1Y) Calculated over the trailing 1-year period	57.05%	11.86%	+45.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	67.43%	16.91%	+50.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	68.91%	18.07%	+50.84%

TZA vs. FXAIX - Expense Ratio Comparison

TZA has a 1.11% expense ratio, which is higher than FXAIX's 0.02% expense ratio.

Dividends

TZA vs. FXAIX - Dividend Comparison

TZA's dividend yield for the trailing twelve months is around 4.82%, more than FXAIX's 1.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXAIX Fidelity 500 Index Fund	1.03%	1.11%	1.25%	1.45%	1.69%	1.22%	1.60%	2.06%	2.72%	1.97%	2.52%	2.83%
TZA Direxion Daily Small Cap Bear 3X Shares	4.82%	5.08%	5.40%	5.49%	0.00%	0.00%	1.21%	1.56%	0.63%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TZA and FXAIX in my portfolio?

TZA and FXAIX have a correlation of -0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TZA or FXAIX?

TZA has higher volatility (17.03%) compared to FXAIX (2.83%). In terms of maximum drawdown, TZA dropped -100.00% vs FXAIX's -33.79%.

Which has better risk-adjusted returns?

FXAIX currently has the higher Sharpe Ratio (2.52 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.