FAZ -3x Direxion Daily Financial Bear 3x ETF

FAZ

ETF -3x BEAR extreme
Direxion Daily Financial Bear 3x ETF
Issuer: Direxion · Tracks: Financials (XLF) · Listed: 2008-11-06
Implied AUM
$88.9M
Last Close
$34.44
20260720
30d Avg Vol
467,914
Options
available
Realized return vs theoretical -3x Financials
Pair counterpart found: FAS (+3x bull, Direxion Daily Financial Bull 3x ETF)
Shorting both legs of a daily-reset bull/bear pair captures combined decay drift over time. Theoretical "free money" — actual edge depends on borrow rates (often punitive on the bear leg) and assignment risk on hard-to-borrow products.
Other leveraged products tracking Financials
Symbol Factor Direction Issuer Name Implied AUM 30d Vol Options
FAS +3x BULL Direxion Direxion Daily Financial Bull 3x ETF $2.37B 601,737
UYG +2x BULL ProShares ProShares Ultra Financials $801.9M 16,840
SKF -2x BEAR ProShares ProShares UltraShort Financials $10.6M 16,120

How FAZ works

FAZ targets -3x the daily return of Financials — not the cumulative return over multi-day windows. The fund rebalances at the close each day using swaps or futures, which is what creates the volatility drag the chart above visualizes.

Mathematical headline: drag ≈ −0.5 × N × (N−1) × σ² per period. For a -3x product on an underlying with 25% annualized vol, expected annual drag is around 18.8%. Add expense ratio and the realized number is typically worse.

  • Short-term tactical: daily and intraday holds are where these products were designed to live.
  • Premium selling: options on FAZ carry very rich IV — see the quote page for IV rank and straddle pricing.
  • Multi-day directional: works in strong trends; gets eaten alive in chop. Use the chart above to gauge the realized vs theoretical track record.