TZA vs. IWM
Compare and contrast key facts about Direxion Daily Small Cap Bear 3X Shares (TZA) and iShares Russell 2000 ETF (IWM).
TZA and IWM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. TZA is a passively managed fund by Direxion that tracks the performance of the Russell 2000 Index (-300%). It was launched on Nov 5, 2008. IWM is a passively managed fund by iShares that tracks the performance of the Russell 2000 Index. It was launched on May 22, 2000. Both TZA and IWM are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: TZA or IWM.
Key characteristics
| TZA | IWM | |
|---|---|---|
| YTD Return | -27.89% | 9.92% |
| 1Y Return | -49.77% | 22.45% |
| 3Y Return (Ann) | -20.83% | 0.90% |
| 5Y Return (Ann) | -46.91% | 8.58% |
| 10Y Return (Ann) | -39.83% | 8.22% |
| Sharpe Ratio | -0.77 | 1.03 |
| Daily Std Dev | 64.03% | 21.40% |
| Max Drawdown | -100.00% | -59.05% |
| Current Drawdown | -100.00% | -6.07% |
Correlation
The correlation between TZA and IWM is -1.00. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.
Performance
TZA vs. IWM - Performance Comparison
In the year-to-date period, TZA achieves a -27.89% return, which is significantly lower than IWM's 9.92% return. Over the past 10 years, TZA has underperformed IWM with an annualized return of -39.83%, while IWM has yielded a comparatively higher 8.22% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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TZA vs. IWM - Expense Ratio Comparison
TZA has a 1.11% expense ratio, which is higher than IWM's 0.19% expense ratio.
Risk-Adjusted Performance
TZA vs. IWM - Risk-Adjusted Performance 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.
Dividends
TZA vs. IWM - Dividend Comparison
TZA's dividend yield for the trailing twelve months is around 4.12%, more than IWM's 1.21% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TZA Direxion Daily Small Cap Bear 3X Shares | 4.12% | 5.49% | 0.00% | 0.00% | 1.21% | 1.57% | 0.63% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
IWM iShares Russell 2000 ETF | 1.21% | 1.35% | 1.48% | 0.94% | 1.04% | 1.26% | 1.40% | 1.26% | 1.38% | 1.54% | 1.26% | 1.23% |
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. For additional features, visit the drawdowns tool.
Volatility
TZA vs. IWM - Volatility Comparison
Direxion Daily Small Cap Bear 3X Shares (TZA) has a higher volatility of 18.73% compared to iShares Russell 2000 ETF (IWM) at 6.28%. 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.