FAZ vs VOO
Direxion Daily Financial Bear 3X ETF vs Vanguard S&P 500 ETF
Which is better, FAZ or VOO?
Opposite sides of the same exposure.
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. The two move opposite each other, correlation -0.82, so holding both offsets the exposure while paying both fees.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FAZ | VOO |
|---|---|---|
| Expense Ratio | 1.03% | 0.03%Best |
| AUM | $93M | $997.4B |
| Dividend Yield | 2.54% | 1.08% |
| Holdings | 8 | 509 |
| YTD Return | -17.37% | +13.37%Best |
| 1Y Return | -21.07% | +20.08%Best |
| 3Y Return (annualized) | -42.49% | +21.29%Best |
| 5Y Return (annualized) | -31.38% | +12.89%Best |
| Volatility (annualized) | 45.9% | 14.1%Best |
| Max Drawdown | - | -34.3% |
| $10,000 over 5 years | $1,521 | $18,335Best |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) |
| Category | Alternative | Equity |
| Style | Trading-Inverse Equity | Large Cap Blend |
| Inception | Nov 6, 2008 | Sep 7, 2010 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 4, 2026 (16 years).
FAZ vs VOO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 16 years both funds cover.
FAZ vs VOO Performance
Direxion Daily Financial Bear 3X ETF (FAZ) is an ETF from Direxion Shares ETF Trust and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year FAZ returned -21.07% while VOO returned +20.08%. Year to date, FAZ is down 17.37% versus a gain of 13.37% for VOO.
Over three years, FAZ compounded at -42.49% per year against +21.29% for VOO; over five years the annualized figures are -31.38% and +12.89% respectively. Across the full 16-year window we track, VOO has the edge at +13.48% annualized vs -44.47%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FAZ has been the more volatile fund, with annualized monthly volatility of 45.9% compared with 14.1% for VOO. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The two funds' monthly returns correlate at -0.82. They move opposite each other. Holding both offsets the exposure rather than spreading it, while paying both funds' fees.
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
We hold position weights for 3 holdings in FAZ and 504 in VOO, totalling 110.8% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 3 positions we hold weights for in FAZ and 504 in VOO, against full books of 8 and 509.
You are not choosing between two funds in isolation.
Whichever of FAZ and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $100 a year on a $10,000 investment.
Which performed better, FAZ or VOO?
Over the past year FAZ returned -21.07% vs +20.08% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), FAZ annualized -44.47% vs +13.48% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FAZ or VOO?
FAZ has been the more volatile fund at 45.9% annualized versus 14.1% for VOO.
Should I hold both FAZ and VOO?
FAZ and VOO have a monthly-return correlation of -0.82, so they move opposite each other. Holding both offsets the exposure rather than spreading it, and pays both funds' fees on the way. This is information, not a recommendation.
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.
Is VOO better than FAZ?
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. The two move opposite each other, correlation -0.82, so holding both offsets the exposure while paying both fees. Which one suits a particular account depends on what it is for. This is information, not a recommendation.