FAZ vs VXUS
Direxion Daily Financial Bear 3X ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.
Side-by-Side Comparison
| Metric | FAZ | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 1.03% | 0.05% | |
| AUM | $84M | $158.1B | |
| Dividend Yield | 2.54% | 2.59% | |
| Holdings | 8 | 8,747 | |
| YTD Return | -17.66% | +15.22% | |
| 1Y Return | -25.22% | +26.86% | |
| 3Y Return (annualized) | -42.59% | +20.34% | |
| 5Y Return (annualized) | -31.02% | +9.38% | |
| Volatility (annualized) | 53.4% | 15.1% | |
| Max Drawdown | -100.0% | -39.9% | |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Nov 6, 2008 | Jan 26, 2011 |
FAZ vs VXUS Performance
Direxion Daily Financial Bear 3X ETF (FAZ) is a ETF from Direxion Shares ETF Trust and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year FAZ returned -25.22% while VXUS returned +26.86%. Year to date, FAZ is down 17.66% versus a gain of 15.22% for VXUS.
Over three years, FAZ compounded at -42.59% per year against +20.34% for VXUS; over five years the annualized figures are -31.02% and +9.38% respectively. Across the full 16-year window we track, VXUS has the edge at +4.89% annualized vs -52.85%. 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 15.1% for VXUS. 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 -39.9% for VXUS. 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 -0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FAZ charges 1.03% per year while VXUS charges 0.05%. On a $10,000 position that is $103 vs $5 annually, a gap of $98 per year that compounds over a long holding period. On income, FAZ currently yields 2.54% against 2.59% for VXUS.
Holdings Overlap
FAZ and VXUS share 0 holdings out of 7872 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 VXUS?
FAZ has an expense ratio of 1.03% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $98 per year of difference.
Which performed better, FAZ or VXUS?
Over the past year FAZ returned -25.22% vs +26.86% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), FAZ annualized -52.85% vs +4.89% for VXUS. Past performance does not guarantee future results.
Which is riskier, FAZ or VXUS?
FAZ has been the more volatile fund at 53.4% annualized versus 15.1% for VXUS. Worst drawdown: FAZ -100.0% vs VXUS -39.9%.
Should I hold both FAZ and VXUS?
FAZ and VXUS have a monthly-return correlation of -0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FAZ and VXUS?
FAZ and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7872 unique securities.
Which pays a higher dividend, FAZ or VXUS?
FAZ yields 2.54% while VXUS yields 2.59%, so VXUS currently pays the higher dividend yield.
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