FAZ vs VXUS

FAZ vs VXUS

Which is better, FAZ or VXUS?

Opposite sides of the same exposure.

VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window. The two move opposite each other, correlation -0.69, so holding both offsets the exposure while paying both fees.

Lower Fees: VXUSHigher Returns: VXUS

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

MetricFAZVXUS
Expense Ratio1.03%0.05%Best
AUM$93M$158.1B
Dividend Yield2.54%2.59%
Holdings88,747
YTD Return-17.37%+16.15%Best
1Y Return-21.07%+27.58%Best
3Y Return (annualized)-42.49%+20.48%Best
5Y Return (annualized)-31.38%+9.09%Best
Volatility (annualized)46.0%15.0%Best
Max Drawdown--39.9%
$10,000 over 5 years$1,521$15,450Best
Fund FamilyDirexion Shares ETF TrustVanguard (US)
CategoryAlternativeEquity
StyleTrading-Inverse EquityLarge Cap Blend
InceptionNov 6, 2008Jan 26, 2011

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Jan 28, 2011 to Sep 4, 2026 (15.6 years).

FAZ vs VXUS 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 15.6 years both funds cover.

FAZ vs VXUS Performance

Direxion Daily Financial Bear 3X ETF (FAZ) is an ETF from Direxion Shares ETF Trust and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year FAZ returned -21.07% while VXUS returned +27.58%. Year to date, FAZ is down 17.37% versus a gain of 16.15% for VXUS.

Over three years, FAZ compounded at -42.49% per year against +20.48% for VXUS; over five years the annualized figures are -31.38% and +9.09% respectively. Across the full 16-year window we track, VXUS has the edge at +4.93% annualized vs -43.69%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FAZ has been the more volatile fund, with annualized monthly volatility of 46.0% compared with 15.0% for VXUS. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The two funds' monthly returns correlate at -0.69. 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 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

We hold position weights for 3 holdings in FAZ and 8,094 in VXUS, totalling 110.8% and 87.7% 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 8,094 in VXUS, against full books of 8 and 8,747.

You are not choosing between two funds in isolation.

Whichever of FAZ and VXUS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

FAZVXUS

Free for up to 10 holdings. No account needed.

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, by $98 a year on a $10,000 investment.

Which performed better, FAZ or VXUS?

Over the past year FAZ returned -21.07% vs +27.58% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), FAZ annualized -43.69% vs +4.93% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FAZ or VXUS?

FAZ has been the more volatile fund at 46.0% annualized versus 15.0% for VXUS.

Should I hold both FAZ and VXUS?

FAZ and VXUS have a monthly-return correlation of -0.69, 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 VXUS?

FAZ yields 2.54% while VXUS yields 2.59%, so VXUS currently pays the higher dividend yield.

Is VXUS better than FAZ?

VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window. The two move opposite each other, correlation -0.69, 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.