Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the Direxion Daily Financial Bear 3X Shares (NYSE: FAZ) have received the dreaded one-star ranking.
With that in mind, let's take a closer look at FAZ and see what CAPS investors are saying about the ETF right now.
FAZ facts
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Inception | |
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Total Net Assets |
$551.5 million |
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Investment Approach |
The investment seeks daily investment results of 300% of the inverse (or opposite) of the performance of the Russell 1000 Financial Services Index. The fund, under normal circumstances, creates short positions by investing at least 80% of its assets in financial instruments that, in combination, provide leveraged and unleveraged exposure to the index. |
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Expense Ratio |
0.95% |
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Year-to-Date / 1-Year / 3-Year Return |
(53.4%) / (69.4%) / (53.1%) |
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Alternatives |
ProShares Short S&P 500 ProShares UltraShort QQQ ProShares UltraShort MSCI Europe |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 85% of the 410 All-Star members who have rated FAZ believe the ETF will underperform the S&P 500 going forward.
Just last week, one of those Fools, TerryHogan, touched on the trends working against FAZ:
I like the financials in the US right now. There's going to be some consolidation until you end up with your few big nationwide guys, similar to the situation in Canada. It just makes sense from a business standpoint and a consumer standpoint. If I move from Flint Michigan to Austin Texas, it's nice if I don't have to switch banks. And if you're a bank, it's nice not to only be operating in Flint.
