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 -44.28%/yr vs 11.68%/yr for IWM. At a correlation of -1.00, they often move in opposite directions. 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 -47.43% return, which is significantly lower than IWM's 21.64% return. Over the past 10 years, TZA has underperformed IWM with an annualized return of -44.28%, while IWM has yielded a comparatively higher 11.68% annualized return.
TZA
- 1D
- -2.74%
- 1M
- -14.44%
- YTD
- -47.43%
- 6M
- -42.41%
- 1Y
- -69.35%
- 3Y*
- -47.24%
- 5Y*
- -31.37%
- 10Y*
- -44.28%
IWM
- 1D
- 0.88%
- 1M
- 4.83%
- YTD
- 21.64%
- 6M
- 18.08%
- 1Y
- 44.01%
- 3Y*
- 19.60%
- 5Y*
- 6.77%
- 10Y*
- 11.68%
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 | -47.43% | -40.22% | -32.22% | -41.19% | 30.21% | -50.80% | -80.43% | -53.25% | 25.06% | -38.19% |
IWM iShares Russell 2000 ETF | 21.64% | 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 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 | -1.00 |
Correlation (3Y) Calculated over the trailing 3-year period | -1.00 |
Correlation (5Y) Calculated over the trailing 5-year period | -1.00 |
Correlation (10Y) Calculated over the trailing 10-year period | -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 | -3.43 | ||
| Sortino ratioReturn per unit of downside risk | -5.30 | ||
| Omega ratioGain probability vs. loss probability | 0.76 | 1.36 | -0.61 |
| Calmar ratioReturn relative to maximum drawdown | -1.02 | 4.01 | -5.03 |
| Martin ratioReturn relative to average drawdown | -1.60 | 14.19 | -15.79 |
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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 | -68.23% | -11.03% | -57.20% |
Max Drawdown (3Y)Largest decline over 3 years | -89.28% | -27.50% | -61.78% |
Max Drawdown (5Y)Largest decline over 5 years | -91.56% | -31.91% | -59.65% |
Max Drawdown (10Y)Largest decline over 10 years | -99.74% | -41.13% | -58.61% |
Current DrawdownCurrent decline from peak | -100.00% | 0.00% | -100.00% |
Average DrawdownAverage peak-to-trough decline | -97.99% | -10.75% | -87.24% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 45.01% | 3.11% | +41.90% |
Volatility
TZA vs. IWM - Volatility Comparison
Direxion Daily Small Cap Bear 3X Shares (TZA) has a higher volatility of 19.05% compared to iShares Russell 2000 ETF (IWM) at 6.47%. 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 | 19.05% | 6.47% | +12.58% |
Volatility (6M)Calculated over the trailing 6-month period | 42.78% | 14.28% | +28.50% |
Volatility (1Y)Calculated over the trailing 1-year period | 58.69% | 19.75% | +38.94% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 67.66% | 22.60% | +45.06% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 69.07% | 23.09% | +45.98% |
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 5.46%, more than IWM's 0.89% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IWM iShares Russell 2000 ETF | 0.89% | 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 | 5.46% | 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 (19.05%) compared to IWM (6.47%). In terms of maximum drawdown, TZA dropped -100.00% vs IWM's -59.05%.
On 10-year performance, IWM leads with 11.68% vs -44.28% for TZA. On fees, IWM is cheaper at 0.19% per year. On volatility, IWM has been the lower-risk option at 6.47%. 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 11.68% return vs -44.28%. 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 5.46%, compared with 0.89% 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 (2.24 vs -1.19), 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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