FAZ vs VTI
Direxion Daily Financial Bear 3X ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | FAZ | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 1.03% | 0.03% | |
| AUM | $84M | $666.9B | |
| Dividend Yield | 2.54% | 1.07% | |
| Holdings | 8 | 3,543 | |
| YTD Return | -12.35% | +12.65% | |
| 1Y Return | -21.68% | +21.39% | |
| 3Y Return (annualized) | -41.98% | +21.54% | |
| 5Y Return (annualized) | -30.92% | +12.11% | |
| Volatility (annualized) | 53.4% | 15.3% | |
| Max Drawdown | -100.0% | -56.6% | |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Nov 6, 2008 | May 24, 2001 |
FAZ vs VTI Performance
Direxion Daily Financial Bear 3X ETF (FAZ) is a ETF from Direxion Shares ETF Trust and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FAZ returned -21.68% while VTI returned +21.39%. Year to date, FAZ is down 12.35% versus a gain of 12.65% for VTI.
Over three years, FAZ compounded at -41.98% per year against +21.54% for VTI; over five years the annualized figures are -30.92% and +12.11% respectively. Across the full 18-year window we track, VTI has the edge at +8.07% annualized vs -52.65%. 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 15.3% for VTI. 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 -56.6% for VTI. 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 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 2.54% against 1.07% for VTI.
Holdings Overlap
FAZ and VTI share 0 holdings out of 2790 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 VTI?
FAZ has an expense ratio of 1.03% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $100 per year of difference.
Which performed better, FAZ or VTI?
Over the past year FAZ returned -21.68% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (18 years), FAZ annualized -52.65% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, FAZ or VTI?
FAZ has been the more volatile fund at 53.4% annualized versus 15.3% for VTI. Worst drawdown: FAZ -100.0% vs VTI -56.6%.
Should I hold both FAZ and VTI?
FAZ and VTI 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 VTI?
FAZ and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2790 unique securities.
Which pays a higher dividend, FAZ or VTI?
FAZ yields 2.54% while VTI yields 1.07%, so FAZ currently pays the higher dividend yield.
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