TZA vs. IWM
TZA (Direxion Daily Small Cap Bear 3X Shares) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - TZA is a Leveraged Equities fund tracking the Russell 2000 Index (-300%), while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 10 years, TZA returned -42.58%/yr vs 10.70%/yr for IWM. Their -1.00 correlation means they have often moved in opposite directions in the past. TZA charges 1.11%/yr vs 0.19%/yr for IWM.
Performance
TZA vs. IWM - Performance Comparison
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Returns By Period
In the year-to-date period, TZA achieves a -43.24% return, which is significantly lower than IWM's 18.79% return. Over the past 10 years, TZA has underperformed IWM with an annualized return of -42.58%, while IWM has yielded a comparatively higher 10.70% annualized return.
TZA
- 1D
- 1.46%
- 1M
- 6.63%
- 6M
- -33.61%
- YTD
- -43.24%
- 1Y
- -63.97%
- 3Y*
- -40.66%
- 5Y*
- -31.37%
- 10Y*
- -42.58%
- ALL TIME*
- -49.66%
IWM
- 1D
- -0.48%
- 1M
- -2.14%
- 6M
- 12.62%
- YTD
- 18.79%
- 1Y
- 36.90%
- 3Y*
- 15.11%
- 5Y*
- 6.99%
- 10Y*
- 10.70%
- ALL TIME*
- 8.73%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $6.67B | $6.32B | $7.45B | |
| $153.79M | $463.04M | $1.03B |
TZA vs. IWM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TZA Direxion Daily Small Cap Bear 3X Shares | -43.24% | -40.22% | -32.22% | -41.19% | 30.21% | -50.80% | -80.43% | -53.25% | 25.06% | -38.19% |
IWM iShares Russell 2000 ETF | 18.79% | 12.66% | 11.38% | 16.83% | -20.48% | 14.54% | 20.03% | 25.39% | -11.12% | 14.58% |
Correlation
The correlation between TZA and IWM is -1.00, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | -1.00 |
Correlation (3Y) Balances recent behavior with more history. | -1.00 |
Correlation (5Y) Shows whether the relationship held over a longer period. | -1.00 |
Correlation (10Y) Provides a long-term view across more market conditions. | -1.00 |
Correlation (All Time) Calculated using the full available price history since Nov 19, 2008 | -1.00 |
The correlation between TZA and IWM has been stable across timeframes, ranging from -1.00 to -1.00 - a consistent structural relationship.
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Return for Risk
TZA vs. IWM — Risk / Return Rank
TZA
IWM
TZA vs. IWM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Small Cap Bear 3X Shares (TZA) and iShares Russell 2000 ETF (IWM). 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 | IWM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.84 | ||
| Sortino ratioReturn per unit of downside risk | -4.32 | ||
| Omega ratioGain probability vs. loss probability | 0.80 | 1.30 | -0.50 |
| Calmar ratioReturn relative to maximum drawdown | -0.92 | 3.11 | -4.03 |
| Martin ratioReturn relative to average drawdown | -1.34 | 11.02 | -12.36 |
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Drawdowns
TZA vs. IWM - Drawdown Comparison
The maximum TZA drawdown since its inception was -100.00%, which is greater than IWM's maximum drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for TZA and IWM.
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Drawdown Indicators
| TZA | IWM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -59.05% | -40.95% |
Max Drawdown (1Y)Largest decline over 1 year | -67.34% | -11.03% | -56.31% |
Max Drawdown (3Y)Largest decline over 3 years | -89.50% | -27.50% | -62.00% |
Max Drawdown (5Y)Largest decline over 5 years | -91.74% | -31.91% | -59.83% |
Max Drawdown (10Y)Largest decline over 10 years | -99.67% | -41.13% | -58.54% |
Current DrawdownCurrent decline from peak | -100.00% | -3.08% | -96.92% |
Average DrawdownAverage peak-to-trough decline | -98.00% | -10.71% | -87.29% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 46.18% | 3.11% | +43.07% |
Volatility
TZA vs. IWM - Volatility Comparison
Direxion Daily Small Cap Bear 3X Shares (TZA) has a higher volatility of 11.25% compared to iShares Russell 2000 ETF (IWM) at 3.82%. This indicates that TZA's price experiences larger fluctuations and is considered to be riskier than IWM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TZA | IWM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 11.25% | 3.82% | +7.43% |
Volatility (6M)Calculated over the trailing 6-month period | 42.35% | 14.12% | +28.23% |
Volatility (1Y)Calculated over the trailing 1-year period | 57.73% | 19.41% | +38.32% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 67.27% | 22.48% | +44.79% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 68.83% | 23.01% | +45.82% |
TZA vs. IWM - Expense Ratio Comparison
TZA has a 1.11% expense ratio, which is higher than IWM's 0.19% expense ratio.
Dividends
TZA vs. IWM - Dividend Comparison
TZA's dividend yield for the trailing twelve months is around 4.67%, more than IWM's 0.91% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IWM iShares Russell 2000 ETF | 0.91% | 1.04% | 1.15% | 1.35% | 1.48% | 0.94% | 1.04% | 1.26% | 1.40% | 1.26% | 1.38% | 1.54% |
TZA Direxion Daily Small Cap Bear 3X Shares | 4.67% | 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
TZA and IWM have a correlation of -1.00, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TZA has higher volatility (11.25%) compared to IWM (3.82%). In terms of maximum drawdown, TZA dropped -100.00% vs IWM's -59.05%.
On 10-year performance, IWM leads with 10.70% vs -42.58% for TZA. On fees, IWM is cheaper at 0.19% per year. On volatility, IWM has been the lower-risk option at 3.82%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IWM has performed better with a 10.70% return vs -42.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IWM is cheaper with a 0.19% expense ratio, compared with 1.11% for TZA.
TZA has the higher dividend yield at 4.67%, compared with 0.91% for IWM.
TZA is categorized as Leveraged Equities, while IWM is Small Cap Blend Equities. TZA tracks Russell 2000 Index (-300%), while IWM tracks Russell 2000 Index. They also come from different issuers: Direxion and iShares. Their fees differ too: 1.11% for TZA and 0.19% for IWM.
IWM currently has the higher Sharpe Ratio (1.77 vs -1.07), 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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