TZA vs. MUU

Last updated Jul 18, 2026

TZA (Direxion Daily Small Cap Bear 3X Shares) and MUU (Direxion Daily MU Bull 2X Shares) are both Leveraged Equities funds from Direxion - TZA tracks the Russell 2000 Index (-300%) while MUU tracks the Micron Technology, Inc. (200% Daily). Both are passively managed. Over the past year, TZA returned -60.50% vs 2727.74% for MUU. At a correlation of -0.49, they often move in opposite directions. TZA charges 1.11%/yr vs 1.01%/yr for MUU.

Performance

TZA vs. MUU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Small Cap Bear 3X Shares (TZA) and Direxion Daily MU Bull 2X Shares (MUU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TZA achieves a -44.85% return, which is significantly lower than MUU's 443.78% return.

TZA

• 1D: 1.70%
• 1M: -3.94%
• 6M: -30.85%
• YTD: -44.85%
• 1Y: -60.50%
• 3Y*: -41.71%
• 5Y*: -33.09%
• 10Y*: -42.80%

MUU

• 1D: -0.98%
• 1M: -40.95%
• 6M: 248.19%
• YTD: 443.78%
• 1Y: 2,727.74%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

TZA vs. MUU - Yearly Performance Comparison

	2026 (YTD)	2025	2024
TZA Direxion Daily Small Cap Bear 3X Shares	-44.85%	-40.22%	-7.08%
MUU Direxion Daily MU Bull 2X Shares	443.78%	599.03%	-40.91%

Correlation

The correlation between TZA and MUU is -0.45, 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	-0.45
Correlation (All Time) Calculated using the full available price history since Oct 10, 2024	-0.49

Return for Risk

TZA vs. MUU — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TZA

TZA Risk / Return Rank: 1
TZA Sharpe Ratio Rank: 1
TZA Sortino Ratio Rank: 1
TZA Omega Ratio Rank: 1
TZA Calmar Ratio Rank: 1
TZA Martin Ratio Rank: 2

MUU

MUU Risk / Return Rank: 98
MUU Sharpe Ratio Rank: 100
MUU Sortino Ratio Rank: 97
MUU Omega Ratio Rank: 96
MUU Calmar Ratio Rank: 99
MUU Martin Ratio Rank: 99

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TZA vs. MUU - 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 MU Bull 2X Shares (MUU). 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	MUU	Difference
Sharpe ratio: Return per unit of total volatility	-1.05	18.17	-19.23
Sortino ratio: Return per unit of downside risk	-1.74	5.06	-6.80
Omega ratio: Gain probability vs. loss probability	0.81	1.64	-0.83
Calmar ratio: Return relative to maximum drawdown	-0.90	49.66	-50.56
Martin ratio: Return relative to average drawdown	-1.36	157.16	-158.52

TZA vs. MUU - Sharpe Ratio Comparison

The current TZA Sharpe Ratio is -1.05, which is lower than the MUU Sharpe Ratio of 18.17. The chart below compares the historical Sharpe Ratios of TZA and MUU, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

TZA vs. MUU - Drawdown Comparison

The maximum TZA drawdown since its inception was -100.00%, which is greater than MUU's maximum drawdown of -75.07%. Use the drawdown chart below to compare losses from any high point for TZA and MUU.

Drawdown Indicators

	TZA	MUU	Difference
Max Drawdown Largest peak-to-trough decline	-100.00%	-75.07%	-24.93%
Max Drawdown (1Y) Largest decline over 1 year	-67.34%	-55.69%	-11.65%
Max Drawdown (3Y) Largest decline over 3 years	-89.50%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-91.74%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-99.67%	—	—
Current Drawdown Current decline from peak	-100.00%	-55.69%	-44.31%
Average Drawdown Average peak-to-trough decline	-98.00%	-23.69%	-74.31%
Ulcer Index Depth and duration of drawdowns from previous peaks	44.36%	17.56%	+26.80%

Volatility

TZA vs. MUU - Volatility Comparison

The current volatility for Direxion Daily Small Cap Bear 3X Shares (TZA) is 11.03%, while Direxion Daily MU Bull 2X Shares (MUU) has a volatility of 61.71%. This indicates that TZA experiences smaller price fluctuations and is considered to be less risky than MUU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TZA	MUU	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.03%	61.71%	-50.68%
Volatility (6M) Calculated over the trailing 6-month period	42.47%	125.18%	-82.71%
Volatility (1Y) Calculated over the trailing 1-year period	57.65%	152.35%	-94.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	67.46%	142.17%	-74.71%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	68.78%	142.17%	-73.39%

TZA vs. MUU - Expense Ratio Comparison

TZA has a 1.11% expense ratio, which is higher than MUU's 1.01% expense ratio.

Dividends

TZA vs. MUU - Dividend Comparison

TZA's dividend yield for the trailing twelve months is around 4.81%, more than MUU's 1.25% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
MUU Direxion Daily MU Bull 2X Shares	1.25%	4.27%	0.31%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TZA Direxion Daily Small Cap Bear 3X Shares	4.81%	5.08%	5.40%	5.49%	0.00%	0.00%	1.21%	1.56%	0.63%

Frequently Asked Questions

Can I hold both TZA and MUU in my portfolio?

TZA and MUU have a correlation of -0.45, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TZA or MUU?

MUU has higher volatility (61.71%) compared to TZA (11.03%). In terms of maximum drawdown, TZA dropped -100.00% vs MUU's -75.07%.

Which ETF is better, TZA or MUU?

On 1-year performance, MUU leads with 2727.74% vs -60.50% for TZA. On fees, MUU is cheaper at 1.01% per year. On volatility, TZA has been the lower-risk option at 11.03%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TZA or MUU?

Over the 1-year period, MUU has performed better with a 2727.74% return vs -60.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TZA or MUU?

MUU is cheaper with a 1.01% expense ratio, compared with 1.11% for TZA.

Which ETF pays a higher dividend yield, TZA or MUU?

TZA has the higher dividend yield at 4.81%, compared with 1.25% for MUU.

What is the main difference between TZA and MUU?

TZA tracks Russell 2000 Index (-300%), while MUU tracks Micron Technology, Inc. (200% Daily). Their fees differ too: 1.11% for TZA and 1.01% for MUU.

Which has better risk-adjusted returns?

MUU currently has the higher Sharpe Ratio (18.17 vs -1.05), 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.