FAZ vs VOO
Direxion Daily Financial Bear 3X ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | FAZ | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.03% | 0.03% | |
| AUM | $84M | $997.4B | |
| Dividend Yield | 2.54% | 1.08% | |
| Holdings | 8 | 509 | |
| YTD Return | -16.30% | +12.95% | |
| 1Y Return | -26.41% | +20.69% | |
| 3Y Return (annualized) | -42.92% | +22.09% | |
| 5Y Return (annualized) | -31.54% | +13.40% | |
| Volatility (annualized) | 53.4% | 14.1% | |
| Max Drawdown | -100.0% | -34.3% | |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Nov 6, 2008 | Sep 7, 2010 |
FAZ vs VOO Performance
Direxion Daily Financial Bear 3X ETF (FAZ) is a ETF from Direxion Shares ETF Trust and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year FAZ returned -26.41% while VOO returned +20.69%. Year to date, FAZ is down 16.30% versus a gain of 12.95% for VOO.
Over three years, FAZ compounded at -42.92% per year against +22.09% for VOO; over five years the annualized figures are -31.54% and +13.40% respectively. Across the full 16-year window we track, VOO has the edge at +13.50% annualized vs -52.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FAZ has been the more volatile fund, with annualized monthly volatility of 53.4% compared with 14.1% for VOO. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -100.0% for FAZ and -34.3% for VOO. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at -0.82. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FAZ charges 1.03% per year while VOO charges 0.03%. On a $10,000 position that is $103 vs $3 annually, a gap of $100 per year that compounds over a long holding period. On income, FAZ currently yields 2.54% against 1.08% for VOO.
Holdings Overlap
FAZ and VOO share 0 holdings out of 508 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FAZ or VOO?
FAZ has an expense ratio of 1.03% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $100 per year of difference.
Which performed better, FAZ or VOO?
Over the past year FAZ returned -26.41% vs +20.69% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), FAZ annualized -52.79% vs +13.50% for VOO. Past performance does not guarantee future results.
Which is riskier, FAZ or VOO?
FAZ has been the more volatile fund at 53.4% annualized versus 14.1% for VOO. Worst drawdown: FAZ -100.0% vs VOO -34.3%.
Should I hold both FAZ and VOO?
FAZ and VOO have a monthly-return correlation of -0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FAZ and VOO?
FAZ and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 508 unique securities.
Which pays a higher dividend, FAZ or VOO?
FAZ yields 2.54% while VOO yields 1.08%, so FAZ currently pays the higher dividend yield.
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