TZA vs. LABD
TZA (Direxion Daily Small Cap Bear 3X Shares) and LABD (Direxion Daily S&P Biotech Bear 3x Shares) are both Leveraged Equities funds from Direxion - TZA tracks the Russell 2000 Index (-300%) while LABD tracks the S&P Biotechnology Select Industry Index (-300%). Both are passively managed. Over the past 10 years, TZA returned -43.15%/yr vs -56.11%/yr for LABD. A 0.70 correlation means they provide meaningful diversification when combined. TZA charges 1.11%/yr vs 1.06%/yr for LABD.
Performance
TZA vs. LABD - Performance Comparison
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Returns By Period
In the year-to-date period, TZA achieves a -40.43% return, which is significantly lower than LABD's -29.83% return. Over the past 10 years, TZA has outperformed LABD with an annualized return of -43.15%, while LABD has yielded a comparatively lower -56.11% 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%
LABD
- 1D
- -4.73%
- 1M
- 4.70%
- YTD
- -29.83%
- 6M
- -31.22%
- 1Y
- -80.27%
- 3Y*
- -49.85%
- 5Y*
- -41.45%
- 10Y*
- -56.11%
TZA vs. LABD - 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% |
LABD Direxion Daily S&P Biotech Bear 3x Shares | -29.83% | -70.07% | -21.43% | -41.77% | -32.68% | 1.86% | -89.75% | -70.80% | -6.26% | -75.67% |
Correlation
The correlation between TZA and LABD is 0.63, 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 | 0.63 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.70 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.72 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.70 |
Correlation (All Time) Calculated using the full available price history since May 29, 2015 | 0.70 |
The correlation between TZA and LABD has been stable across timeframes, ranging from 0.63 to 0.72 - a consistent structural relationship.
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Return for Risk
TZA vs. LABD — Risk / Return Rank
TZA
LABD
TZA vs. LABD - 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 S&P Biotech Bear 3x Shares (LABD). 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 | LABD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.09 | ||
| Sortino ratioReturn per unit of downside risk | +0.15 | ||
| Omega ratioGain probability vs. loss probability | 0.78 | 0.75 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | -0.98 | -0.97 | -0.01 |
| Martin ratioReturn relative to average drawdown | -1.51 | -1.31 | -0.20 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| TZA | LABD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -1.16 | -1.06 | -0.09 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.45 | -0.43 | -0.02 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.63 | -0.59 | -0.04 |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.71 | -0.54 | -0.17 |
Drawdowns
TZA vs. LABD - Drawdown Comparison
The maximum TZA drawdown since its inception was -100.00%, roughly equal to the maximum LABD drawdown of -99.99%. Use the drawdown chart below to compare losses from any high point for TZA and LABD.
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Drawdown Indicators
| TZA | LABD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -99.99% | -0.01% |
Max Drawdown (1Y)Largest decline over 1 year | -67.28% | -83.21% | +15.93% |
Max Drawdown (3Y)Largest decline over 3 years | -88.34% | -95.31% | +6.97% |
Max Drawdown (5Y)Largest decline over 5 years | -90.83% | -98.24% | +7.41% |
Max Drawdown (10Y)Largest decline over 10 years | -99.71% | -99.98% | +0.27% |
Current DrawdownCurrent decline from peak | -100.00% | -99.99% | -0.01% |
Average DrawdownAverage peak-to-trough decline | -98.00% | -90.92% | -7.08% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 43.51% | 61.36% | -17.85% |
Volatility
TZA vs. LABD - Volatility Comparison
The current volatility for Direxion Daily Small Cap Bear 3X Shares (TZA) is 17.03%, while Direxion Daily S&P Biotech Bear 3x Shares (LABD) has a volatility of 27.46%. This indicates that TZA experiences smaller price fluctuations and is considered to be less risky than LABD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TZA | LABD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 17.03% | 27.46% | -10.43% |
Volatility (6M)Calculated over the trailing 6-month period | 40.64% | 61.67% | -21.03% |
Volatility (1Y)Calculated over the trailing 1-year period | 57.05% | 75.77% | -18.72% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 67.43% | 96.26% | -28.83% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 68.91% | 95.93% | -27.02% |
TZA vs. LABD - Expense Ratio Comparison
TZA has a 1.11% expense ratio, which is higher than LABD's 1.06% expense ratio.
Dividends
TZA vs. LABD - Dividend Comparison
TZA's dividend yield for the trailing twelve months is around 4.82%, less than LABD's 6.45% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
LABD Direxion Daily S&P Biotech Bear 3x Shares | 6.45% | 6.67% | 4.68% | 6.13% | 0.53% | 0.00% | 3.94% | 1.75% | 0.81% |
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% |
Frequently Asked Questions
TZA and LABD have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LABD has higher volatility (27.46%) compared to TZA (17.03%). In terms of maximum drawdown, TZA dropped -100.00% vs LABD's -99.99%.
On 10-year performance, TZA leads with -43.15% vs -56.11% for LABD. On fees, LABD is cheaper at 1.06% per year. On volatility, TZA has been the lower-risk option at 17.03%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, TZA has performed better with a -43.15% return vs -56.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
LABD is cheaper with a 1.06% expense ratio, compared with 1.11% for TZA.
LABD has the higher dividend yield at 6.45%, compared with 4.82% for TZA.
TZA tracks Russell 2000 Index (-300%), while LABD tracks S&P Biotechnology Select Industry Index (-300%). Their fees differ too: 1.11% for TZA and 1.06% for LABD.
LABD currently has the higher Sharpe Ratio (-1.06 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.
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