FAZ Stock: Direxion Daily Financial Bear 3X Shares Profile & Analysis (2026)
FAZ is a 3x leveraged inverse ETF designed to provide triple the opposite daily performance of the S&P Financial Select Sector Index. — Updated May 2026 with current AUM, expense ratio, holdings, and performance data.
The Direxion Daily Financial Bear 3X Shares (FAZ) is a high-octane trading instrument for those looking to profit from downward trends in the U.S. financial sector. Unlike traditional index funds, FAZ utilizes aggressive leverage to achieve -300% of the daily return of the S&P Financial Select Sector Index, which includes major banks, insurance providers, and capital market firms. Because of its daily reset mechanism, FAZ is strictly a tactical tool for short-term traders and is not suitable for long-term holding.
Traders often use FAZ alongside other leveraged products like the SQQQ Stock Profile to hedge against broad market downturns or to capitalize on sector-specific weakness. For those interested in high-volatility trading, similar tactical instruments exist in other sectors, such as the LABU Stock Profile for biotechnology. However, it is vital to understand that holding FAZ for more than a single trading session exposes the investor to volatility decay, which can erode capital even if the underlying index eventually moves in the desired direction.
Key Takeaways — FAZ Stock
FAZ seeks to provide -300% of the daily performance of large-cap U.S. financial companies, magnifying gains when banks fall.
The fund rebalances its exposure daily, making it a “day-trading” vehicle rather than a “buy-and-hold” investment.
In sideways or choppy markets, the math of daily compounding can cause the fund’s value to drop even if the index is flat.
Primarily used to hedge portfolios against a financial crisis or to scalp returns during a sector-wide sell-off.
FAZ — Live Price Chart
Real-time chart from TradingView.
FAZ ETF Vitals & Key Statistics
Core data as of May 2026.
| Data Point | Value | Data Point | Value |
|---|---|---|---|
| Full Name | Direxion Daily Financial Bear 3X Shares | Ticker | FAZ |
| Issuer | Direxion | Asset Class | Inverse Leveraged Equity |
| Index Tracked | S&P Financial Select Sector Index (-300%) | Structure | ETF |
| Expense Ratio | 1.03% | AUM | $120M |
| Inception Date | November 6, 2008 | Exchange | AMEX |
| No. of Holdings | 14 | Dividend Yield | 3.45% |
| 52-Week High | $56.37 | 52-Week Low | $34.87 |
| Avg Daily Volume | ~1.04M | YTD Return | 37.8% |
| 1-Year Return | 0.14% | 5-Year Return | 30.7% |
| Category | Trading—Inverse Equity | Dividend Frequency | Quarterly |
FAZ Top 10 Holdings (May 2026)
Largest positions by weight. Click columns to sort.
| Rank | Ticker | Company Name | Sector | Weight % |
|---|---|---|---|---|
| 1 | DRYF | Dreyfus Govt Cash Management Inst + | Cash Management | 88.00% |
| 2 | TREA | Dreyfus Treasury Securities Cash Mgmt + | Cash Management | 42.27% |
| 3 | GOLD | Goldman Financial Square Treasury Inst 506 + | Cash Management | 29.75% |
| 4 | SWAP | Financial Select Sector Index Swap | Derivatives | 5.18% |
| 5 | SWAP | Financial Select Sector Index Swap | Derivatives | 3.86% |
| 6 | COLL | UBS Collateral | Collateral | 2.84% |
| 7 | COLL | Goldman Collateral | Collateral | 2.21% |
| 8 | SWAP | Financial Select Sector Index Swap | Derivatives | 1.53% |
| 9 | COLL | BofA Collateral | Collateral | 1.25% |
| 10 | CASH | Cash | Cash | 6.74% |
FAZ — Pros & Cons
✓ Powerful Downside Hedge
Provides a way to significantly profit from a banking crisis or sector sell-off with minimal capital outlay.
✗ Rapid Capital Erosion
Due to 3x leverage, a small rally in financials can result in a massive loss of principal in a single day.
✓ High Liquidity
With consistent volume over 1 million shares daily, traders can easily enter and exit large tactical positions.
✗ Volatility Decay
Holding the fund in a choppy market will likely lead to losses even if the target index hasn’t gained value.
✓ Easy Sector Access
Allows investors to “short” the entire financial industry through a standard brokerage account without a margin account.
✗ Compounding Risk
Returns for periods longer than one day may not track the -3x objective, often underperforming expectations.
Who Should Consider FAZ?
Aggressive day traders and professional speculators who want to bet against the banking sector for very short durations.
Passive, long-term, or retirement-focused investors who want to buy and hold for months or years.
You have a strong conviction that the financial sector will drop immediately and you have the ability to monitor the position hourly.
Active trading accounts. Generally unsuitable for IRAs or 401(k)s due to the high risk and daily rebalancing nature.
FAZ vs Similar ETFs
Key metrics comparison.
| ETF | Full Name | Expense Ratio | AUM | Holdings | Div Yield | YTD | Best For |
|---|---|---|---|---|---|---|---|
| FAZ ★ | Direxion Daily Financial Bear 3X | 1.03% | $120M | 14 | 3.45% | 37.8% | Short-term bearish financials |
| SKF | ProShares UltraShort Financials | 0.95% | $35M | 10 | 0.00% | 24.5% | 2x Inverse exposure |
| SEF | ProShares Short Financials | 0.95% | $12M | 15 | 0.00% | 12.1% | 1x Inverse (less decay) |
| FAS | Direxion Daily Financial Bull 3X | 1.03% | $1.8B | 12 | 0.80% | -42.3% | 3x Bullish financials |
FAZ Technical Analysis
Real-time buy/sell signals.
FAZ — Risks & Considerations
Compounding and Daily Resets
Leverage is reset daily. Over long periods, performance can deviate wildly from -3x due to the math of compounding.
High Capital Risk
If the financial sector rallies 33% in a single day, the value of FAZ theoretically drops to zero.
Volatility Decay
Daily rebalancing forces the fund to “buy high and sell low” in choppy markets, leading to steady value erosion.
Expense Drag
The 1.03% expense ratio is very high and acts as a significant headwind for any position held more than a few days.