TWM vs TZA
ProShares UltraShort Russell2000 vs Direxion Daily Small Cap Bear 3X ETF
Which is better, TWM or TZA?
Nearly the same fund. TWM costs less.
TWM has a lower expense ratio. TWM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.99.
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 | TWM | TZA |
|---|---|---|
| Expense Ratio | 0.95%Best | 0.99% |
| AUM | $67M | $238M |
| Dividend Yield | 3.84% | 3.98% |
| Holdings | 18 | 22 |
| YTD Return | -17.14%Best | -27.78% |
| 1Y Return | -18.30%Best | -30.20% |
| 3Y Return (annualized) | -29.33%Best | -44.45% |
| 5Y Return (annualized) | -14.78%Best | -26.84% |
| Volatility (annualized) | 38.8%Best | 55.9% |
| $10,000 over 5 years | $4,495Best | $2,096 |
| Fund Family | ProShares | Direxion Shares ETF Trust |
| Category | Alternative | Alternative |
| Style | Trading-Inverse Equity | Trading-Inverse Equity |
| Inception | Jan 23, 2007 | Nov 5, 2008 |
Not shown on this pair: Max Drawdown, Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 5, 2008 to Oct 14, 2026 (17.9 years).
TWM vs TZA 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.
TWM vs TZA Performance
ProShares UltraShort Russell2000 (TWM) is an ETF from ProShares and Direxion Daily Small Cap Bear 3X ETF (TZA) is an ETF from Direxion Shares ETF Trust. Over the past year TWM returned -18.30% while TZA returned -30.20%. Year to date, TWM is down 17.14% versus a loss of 27.78% for TZA.
Over three years, TWM compounded at -29.33% per year against -44.45% for TZA; over five years the annualized figures are -14.78% and -26.84% respectively. Across the full 18-year window we track, TWM has the edge at -32.38% annualized vs -47.69%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TZA has been the more volatile fund, with annualized monthly volatility of 55.9% compared with 38.8% for TWM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The two funds' monthly returns correlate at 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
TWM charges 0.95% per year while TZA charges 0.99%. On a $10,000 position that is $95 vs $99 annually, a gap of $4 per year that compounds over a long holding period. On income, TWM currently yields 3.84% against 3.98% for TZA.
Holdings Overlap
We hold position weights for 1 holding in TWM and 3 in TZA, totalling 70.2% and 96.1% 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 1 positions we hold weights for in TWM and 3 in TZA, against full books of 18 and 22.
You are not choosing between two funds in isolation.
Whichever of TWM and TZA 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, TWM or TZA?
TWM has an expense ratio of 0.95% while TZA charges 0.99%. TWM is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, TWM or TZA?
Over the past year TWM returned -18.30% vs -30.20% for TZA, so TWM leads on 1-year performance. Over the longest common window we track (18 years), TWM annualized -32.38% vs -47.69% for TZA. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, TWM or TZA?
TZA has been the more volatile fund at 55.9% annualized versus 38.8% for TWM.
Should I hold both TWM and TZA?
TWM and TZA have a monthly-return correlation of 0.99, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, TWM or TZA?
TWM yields 3.84% while TZA yields 3.98%, so TZA currently pays the higher dividend yield.
Is TZA better than TWM?
TWM has a lower expense ratio. TWM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.99. Which one suits a particular account depends on what it is for. This is information, not a recommendation.