FAZ -3x Direxion Daily Financial Bear 3x ETF

BEAR ETF extreme · Issuer Direxion · Tracks Financials (XLF) · Listed 2008-11-06

Quote & options All leveraged ETFs
Implied AUM
$111.6M
shares out × price
Last close
$39.44
20261001
30-day avg volume
1,158,972
options listed →
FAZ realized
—
what holders actually earned
Theoretical -3x
—
-3x × Financials's return
Decay gap
—
realized minus theoretical

Realized vs theoretical -3x Financials

Cumulative return of FAZ against a clean -3x of Financials's return over the same window; the red line (right axis) is the gap between them.

Pair counterpart: FAS (+3x bull, Direxion Daily Financial Bull 3x ETF)
Shorting both legs of a daily-reset bull/bear pair captures their combined decay over time. It isn't free money — the edge depends on borrow rates (often punitive on the bear leg) and assignment risk on hard-to-borrow shares.

Other leveraged products on Financials

3
SymbolFactorDirectionIssuerNameImplied AUM30d volumeOptions
FAS +3x BULLDirexionDirexion Daily Financial Bull 3x ETF $1.9B 391,670 ✓
UYG +2x BULLProSharesProShares Ultra Financials $705.9M 14,333 ✓
SKF -2x BEARProSharesProShares UltraShort Financials $13.5M 33,971 ✓

How FAZ works

FAZ targets -3x the daily return of Financials — not the return over longer windows. It rebalances every day, so over weeks and months its result drifts away from -3x × the index, usually downward when the market chops around.

The maths: the drag is roughly −½ × N × (N−1) × σ² per period (N = leverage, σ = the index's volatility). For a -3x fund on an index with 25% annual volatility that is several percent a year before fees — the red line above is that drag measured.

Short-term trades (a day or a few) are what these funds are built for. Premium sellers like their rich option IV — see the quote page. Multi-day directional bets work in strong trends and get eaten in chop.

Not investment advice.