TZA vs. XDSQ
TZA (Direxion Daily Small Cap Bear 3X Shares) and XDSQ (Innovator US Equity Accelerated ETF) are both Leveraged Equities funds. TZA is passively managed, while XDSQ is actively managed. Over the past 5 years, TZA returned -31.37%/yr vs 9.46%/yr for XDSQ. Their -0.77 correlation means they have often moved in opposite directions in the past. TZA charges 1.11%/yr vs 0.79%/yr for XDSQ.
Performance
TZA vs. XDSQ - Performance Comparison
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Returns By Period
In the year-to-date period, TZA achieves a -43.24% return, which is significantly lower than XDSQ's 4.06% return.
TZA
- 1D
- 1.46%
- 1M
- 6.63%
- 6M
- -33.61%
- YTD
- -43.24%
- 1Y
- -63.97%
- 3Y*
- -40.66%
- 5Y*
- -31.37%
- 10Y*
- -42.58%
- ALL TIME*
- -49.66%
XDSQ
- 1D
- 1.09%
- 1M
- 1.17%
- 6M
- 2.50%
- YTD
- 4.06%
- 1Y
- 14.72%
- 3Y*
- 13.83%
- 5Y*
- 9.46%
- 10Y*
- —
- ALL TIME*
- 10.43%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $153.79M | $463.04M | $1.03B | |
| $337.95K | $898.70K | $479.40K |
TZA vs. XDSQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
TZA Direxion Daily Small Cap Bear 3X Shares | -43.24% | -40.22% | -32.22% | -41.19% | 30.21% | -20.56% |
XDSQ Innovator US Equity Accelerated ETF | 4.06% | 14.22% | 23.12% | 23.00% | -16.78% | 13.28% |
Correlation
The correlation between TZA and XDSQ is -0.71, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | -0.71 |
Correlation (3Y) Balances recent behavior with more history. | -0.71 |
Correlation (5Y) Shows whether the relationship held over a longer period. | -0.78 |
Correlation (All Time) Calculated using the full available price history since Apr 1, 2021 | -0.77 |
The correlation between TZA and XDSQ has been stable across timeframes, ranging from -0.78 to -0.71 - a consistent structural relationship.
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Return for Risk
TZA vs. XDSQ — Risk / Return Rank
TZA
XDSQ
TZA vs. XDSQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Small Cap Bear 3X Shares (TZA) and Innovator US Equity Accelerated ETF (XDSQ). 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 | XDSQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.27 | ||
| Sortino ratioReturn per unit of downside risk | -3.48 | ||
| Omega ratioGain probability vs. loss probability | 0.80 | 1.24 | -0.44 |
| Calmar ratioReturn relative to maximum drawdown | -0.92 | 1.36 | -2.28 |
| Martin ratioReturn relative to average drawdown | -1.34 | 6.43 | -7.77 |
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Drawdowns
TZA vs. XDSQ - Drawdown Comparison
The maximum TZA drawdown since its inception was -100.00%, which is greater than XDSQ's maximum drawdown of -26.06%. Use the drawdown chart below to compare losses from any high point for TZA and XDSQ.
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Drawdown Indicators
| TZA | XDSQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -26.06% | -73.94% |
Max Drawdown (1Y)Largest decline over 1 year | -67.34% | -9.60% | -57.74% |
Max Drawdown (3Y)Largest decline over 3 years | -89.50% | -19.15% | -70.35% |
Max Drawdown (5Y)Largest decline over 5 years | -91.74% | -26.06% | -65.68% |
Max Drawdown (10Y)Largest decline over 10 years | -99.67% | — | — |
Current DrawdownCurrent decline from peak | -100.00% | -0.31% | -99.69% |
Average DrawdownAverage peak-to-trough decline | -98.00% | -4.83% | -93.17% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 46.18% | 2.03% | +44.15% |
Volatility
TZA vs. XDSQ - Volatility Comparison
Direxion Daily Small Cap Bear 3X Shares (TZA) has a higher volatility of 11.25% compared to Innovator US Equity Accelerated ETF (XDSQ) at 3.54%. This indicates that TZA's price experiences larger fluctuations and is considered to be riskier than XDSQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TZA | XDSQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 11.25% | 3.54% | +7.71% |
Volatility (6M)Calculated over the trailing 6-month period | 42.35% | 8.13% | +34.22% |
Volatility (1Y)Calculated over the trailing 1-year period | 57.73% | 10.98% | +46.75% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 67.27% | 15.29% | +51.98% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 68.83% | 14.95% | +53.88% |
TZA vs. XDSQ - Expense Ratio Comparison
TZA has a 1.11% expense ratio, which is higher than XDSQ's 0.79% expense ratio.
Dividends
TZA vs. XDSQ - Dividend Comparison
TZA's dividend yield for the trailing twelve months is around 4.67%, while XDSQ has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
TZA Direxion Daily Small Cap Bear 3X Shares | 4.67% | 5.08% | 5.40% | 5.49% | 0.00% | 0.00% | 1.21% | 1.56% | 0.63% |
XDSQ Innovator US Equity Accelerated ETF | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
TZA and XDSQ have a correlation of -0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TZA has higher volatility (11.25%) compared to XDSQ (3.54%). In terms of maximum drawdown, TZA dropped -100.00% vs XDSQ's -26.06%.
On 5-year performance, XDSQ leads with 9.46% vs -31.37% for TZA. On fees, XDSQ is cheaper at 0.79% per year. On volatility, XDSQ has been the lower-risk option at 3.54%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, XDSQ has performed better with a 9.46% return vs -31.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XDSQ is cheaper with a 0.79% expense ratio, compared with 1.11% for TZA.
TZA has the higher dividend yield at 4.67%, compared with 0.00% for XDSQ.
They also come from different issuers: Direxion and Innovator. Their fees differ too: 1.11% for TZA and 0.79% for XDSQ.
XDSQ currently has the higher Sharpe Ratio (1.19 vs -1.07), 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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