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 -44.17%/yr vs -59.09%/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 -46.35% return, which is significantly higher than LABD's -53.78% return. Over the past 10 years, TZA has outperformed LABD with an annualized return of -44.17%, while LABD has yielded a comparatively lower -59.09% annualized return.
TZA
- 1D
- 2.05%
- 1M
- -12.69%
- YTD
- -46.35%
- 6M
- -42.28%
- 1Y
- -67.58%
- 3Y*
- -46.88%
- 5Y*
- -30.52%
- 10Y*
- -44.17%
LABD
- 1D
- -3.10%
- 1M
- -32.29%
- YTD
- -53.78%
- 6M
- -50.39%
- 1Y
- -87.04%
- 3Y*
- -56.99%
- 5Y*
- -43.25%
- 10Y*
- -59.09%
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 | -46.35% | -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 | -53.78% | -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 28, 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.
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 | LABD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.05 | ||
| Sortino ratioReturn per unit of downside risk | +0.59 | ||
| Omega ratioGain probability vs. loss probability | 0.77 | 0.70 | +0.07 |
| Calmar ratioReturn relative to maximum drawdown | -1.00 | -1.00 | +0.01 |
| Martin ratioReturn relative to average drawdown | -1.56 | -1.37 | -0.19 |
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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 | -68.07% | -86.75% | +18.68% |
Max Drawdown (3Y)Largest decline over 3 years | -89.28% | -96.40% | +7.12% |
Max Drawdown (5Y)Largest decline over 5 years | -91.56% | -98.65% | +7.09% |
Max Drawdown (10Y)Largest decline over 10 years | -99.74% | -99.99% | +0.25% |
Current DrawdownCurrent decline from peak | -100.00% | -99.99% | -0.01% |
Average DrawdownAverage peak-to-trough decline | -97.99% | -90.99% | -7.00% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 43.46% | 64.00% | -20.54% |
Volatility
TZA vs. LABD - Volatility Comparison
The current volatility for Direxion Daily Small Cap Bear 3X Shares (TZA) is 19.17%, while Direxion Daily S&P Biotech Bear 3x Shares (LABD) has a volatility of 29.98%. 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 | 19.17% | 29.98% | -10.81% |
Volatility (6M)Calculated over the trailing 6-month period | 42.84% | 65.23% | -22.39% |
Volatility (1Y)Calculated over the trailing 1-year period | 58.62% | 78.79% | -20.17% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 67.66% | 96.66% | -29.00% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 68.98% | 95.97% | -26.99% |
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 5.35%, less than LABD's 9.79% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
LABD Direxion Daily S&P Biotech Bear 3x Shares | 9.79% | 6.67% | 4.68% | 6.13% | 0.53% | 0.00% | 3.94% | 1.75% | 0.81% |
TZA Direxion Daily Small Cap Bear 3X Shares | 5.35% | 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 (29.98%) compared to TZA (19.17%). In terms of maximum drawdown, TZA dropped -100.00% vs LABD's -99.99%.
On 10-year performance, TZA leads with -44.17% vs -59.09% for LABD. On fees, LABD is cheaper at 1.06% per year. On volatility, TZA has been the lower-risk option at 19.17%. 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 -44.17% return vs -59.09%. 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 9.79%, compared with 5.35% 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 (-1.11 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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