FAZ vs VTI
Direxion Daily Financial Bear 3X ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, FAZ or VTI?
Opposite sides of the same exposure.
VTI has a lower expense ratio. VTI 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 | VTI |
|---|---|---|
| Expense Ratio | 1.03% | 0.03%Best |
| AUM | $99M | $666.9B |
| Dividend Yield | 2.62% | 1.03% |
| Holdings | 8 | 3,543 |
| YTD Return | -12.40% | +12.08%Best |
| 1Y Return | -18.34% | +16.31%Best |
| 3Y Return (annualized) | -40.66% | +20.83%Best |
| 5Y Return (annualized) | -30.88% | +11.89%Best |
| Volatility (annualized) | 53.3% | 15.3%Best |
| Max Drawdown | - | -35.0% |
| $10,000 over 5 years | $1,578 | $17,537Best |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) |
| Category | Alternative | Equity |
| Style | Trading-Inverse Equity | Large Cap Blend |
| Inception | Nov 6, 2008 | May 24, 2001 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 6, 2008 to Sep 14, 2026 (17.9 years).
FAZ vs VTI 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
FAZ vs VTI Performance
Direxion Daily Financial Bear 3X ETF (FAZ) is an ETF from Direxion Shares ETF Trust and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year FAZ returned -18.34% while VTI returned +16.31%. Year to date, FAZ is down 12.40% versus a gain of 12.08% for VTI.
Over three years, FAZ compounded at -40.66% per year against +20.83% for VTI; over five years the annualized figures are -30.88% and +11.89% respectively. Across the full 18-year window we track, VTI has the edge at +13.09% annualized vs -52.52%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FAZ has been the more volatile fund, with annualized monthly volatility of 53.3% compared with 15.3% for VTI. 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 VTI 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 2.62% against 1.03% for VTI.
Holdings Overlap
We hold position weights for 3 holdings in FAZ and 3,463 in VTI, totalling 102.2% and 98.1% 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 3,463 in VTI, against full books of 8 and 3,543.
You are not choosing between two funds in isolation.
Whichever of FAZ and VTI 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 VTI?
FAZ has an expense ratio of 1.03% while VTI charges 0.03%. VTI is the cheaper option, by $100 a year on a $10,000 investment.
Which performed better, FAZ or VTI?
Over the past year FAZ returned -18.34% vs +16.31% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (18 years), FAZ annualized -52.52% vs +13.09% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FAZ or VTI?
FAZ has been the more volatile fund at 53.3% annualized versus 15.3% for VTI.
Should I hold both FAZ and VTI?
FAZ and VTI 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 VTI?
FAZ yields 2.62% while VTI yields 1.03%, so FAZ currently pays the higher dividend yield.
Is VTI better than FAZ?
VTI has a lower expense ratio. VTI 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.