FAZ vs SDS
Direxion Daily Financial Bear 3X ETF vs ProShares UltraShort S&P500
Which is better, FAZ or SDS?
Each has led over a different period.
SDS has a lower expense ratio. FAZ led over 1Y, SDS over 3Y, 5Y and the full window.
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 | SDS |
|---|---|---|
| Expense Ratio | 1.04% | 0.91%Best |
| AUM | $93M | $348M |
| Dividend Yield | 2.53% | 5.19% |
| Holdings | 16 | 20 |
| YTD Return | -0.09%Best | -19.15% |
| 1Y Return | -8.61%Best | -23.19% |
| 3Y Return (annualized) | -40.22% | -29.75%Best |
| 5Y Return (annualized) | -26.94% | -20.88%Best |
| Volatility (annualized) | 53.6% | 28.2%Best |
| $10,000 over 5 years | $2,082 | $3,100Best |
| Fund Family | Direxion Shares ETF Trust | ProShares |
| Category | Alternative | Alternative |
| Style | Trading-Inverse Equity | Trading-Inverse Equity |
| Inception | Nov 6, 2008 | Jul 11, 2006 |
Not shown on this pair: Max Drawdown, Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 6, 2008 to Oct 14, 2026 (17.9 years).
FAZ vs SDS 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 17.9 years both funds cover.
FAZ vs SDS Performance
Direxion Daily Financial Bear 3X ETF (FAZ) is an ETF from Direxion Shares ETF Trust and ProShares UltraShort S&P500 (SDS) is an ETF from ProShares. Over the past year FAZ returned -8.61% while SDS returned -23.19%. Year to date, FAZ is down 0.09% versus a loss of 19.15% for SDS.
Over three years, FAZ compounded at -40.22% per year against -29.75% for SDS; over five years the annualized figures are -26.94% and -20.88% respectively. Across the full 18-year window we track, SDS has the edge at -29.92% annualized vs -52.01%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FAZ has been the more volatile fund, with annualized monthly volatility of 53.6% compared with 28.2% for SDS. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The two funds' monthly returns correlate at 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FAZ charges 1.04% per year while SDS charges 0.91%. On a $10,000 position that is $104 vs $91 annually, a gap of $13 per year that compounds over a long holding period. On income, FAZ currently yields 2.53% against 5.19% for SDS.
Holdings Overlap
We hold position weights for 3 holdings in FAZ and 1 in SDS, totalling 102.9% and 93.5% 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 1 in SDS, against full books of 16 and 20.
You are not choosing between two funds in isolation.
Whichever of FAZ and SDS 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 SDS?
FAZ has an expense ratio of 1.04% while SDS charges 0.91%. SDS is the cheaper option, by $13 a year on a $10,000 investment.
Which performed better, FAZ or SDS?
Over the past year FAZ returned -8.61% vs -23.19% for SDS, so FAZ leads on 1-year performance. Over the longest common window we track (18 years), FAZ annualized -52.01% vs -29.92% for SDS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FAZ or SDS?
FAZ has been the more volatile fund at 53.6% annualized versus 28.2% for SDS.
Should I hold both FAZ and SDS?
FAZ and SDS have a monthly-return correlation of 0.85, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FAZ or SDS?
FAZ yields 2.53% while SDS yields 5.19%, so SDS currently pays the higher dividend yield.
Is SDS better than FAZ?
SDS has a lower expense ratio. FAZ led over 1Y, SDS over 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.