(FAZ) Direxion Daily Financial - Ratings and Ratios
Inverse Financial Exposure, Triple Leveraged, Financial Sectors, Banks
Description: FAZ Direxion Daily Financial
The Direxion Daily Financial Bear 3X Shares (FAZ) is an ETF designed to provide investors with a magnified inverse exposure to the financial sector. By investing in a combination of financial instruments, the fund aims to deliver three times the daily inverse return of the underlying index, which tracks the performance of companies in the financial services, insurance, banking, capital markets, mortgage REITs, and consumer finance industries.
The underlying index is comprised of securities from various financial sub-sectors, making FAZ a bet against the overall financial sectors daily performance. As a non-diversified fund, FAZs investment strategy is concentrated on achieving its inverse exposure, rather than spreading risk across multiple asset classes or sectors. This makes it a high-risk, high-reward instrument, particularly suited for sophisticated investors or traders seeking to hedge against or speculate on the financial sectors short-term movements.
From a technical standpoint, FAZ is currently trading at $4.63, below its 20-day, 50-day, and 200-day simple moving averages (SMA20: $5.37, SMA50: $5.86, SMA200: $6.49), indicating a bearish trend. The Average True Range (ATR) of 0.55, or 11.87% of the current price, suggests significant daily price volatility. Given these technical indicators, a potential short-term trading strategy could involve waiting for a breakout or breakdown from the current price level.
Fundamentally, the Assets Under Management (AUM) for FAZ stand at $111.98M USD, indicating a relatively modest size compared to other ETFs. This could impact liquidity, potentially making it more challenging to enter or exit large positions without affecting the market price.
Forecasting the performance of FAZ involves analyzing both the technical and fundamental data. Given the current bearish trend indicated by the technical data, and assuming the financial sector continues to face challenges, FAZ might see short-term gains. However, its inverse nature and 3X leverage mean that any positive daily return in the underlying index could result in a significant loss for FAZ. If the financial sector experiences a downturn, FAZ could potentially rise, but investors should be cautious of the funds high volatility and the potential for rapid losses if the market moves against the funds strategy. A key level to watch would be the 52-week low of $4.63, which is the current price; a break below this could indicate further downside, while a sustained move above the SMA20 could signal a potential reversal.
Additional Sources for FAZ ETF
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle
FAZ ETF Overview
Market Cap in USD | 101m |
Category | Trading--Inverse Equity |
TER | 1.08% |
IPO / Inception | 2008-11-06 |
FAZ ETF Ratings
Growth Rating | -90.0 |
Fundamental | - |
Dividend Rating | 33.1 |
Rel. Strength | -60.6 |
Analysts | - |
Fair Price Momentum | 2.40 USD |
Fair Price DCF | - |
FAZ Dividends
Dividend Yield 12m | 5.63% |
Yield on Cost 5y | 0.23% |
Annual Growth 5y | 5.43% |
Payout Consistency | 47.7% |
Payout Ratio | % |
FAZ Growth Ratios
Growth Correlation 3m | -85% |
Growth Correlation 12m | -85.8% |
Growth Correlation 5y | -91.2% |
CAGR 5y | -48.56% |
CAGR/Max DD 5y | -0.50 |
Sharpe Ratio 12m | -1.49 |
Alpha | -34.49 |
Beta | -2.817 |
Volatility | 38.99% |
Current Volume | 33123.3k |
Average Volume 20d | 24776.8k |
Stop Loss | 4.3 (-3.2%) |
As of July 09, 2025, the stock is trading at USD 4.44 with a total of 33,123,283 shares traded.
Over the past week, the price has changed by +2.54%, over one month by -7.35%, over three months by -43.28% and over the past year by -55.39%.
No, based on ValueRay´s Analyses, Direxion Daily Financial (NYSE ARCA:FAZ) is currently (July 2025) a stock to sell. It has a ValueRay Growth Rating of -89.97 and therefor a clear technical negative rating according to historical growth.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of FAZ is around 2.40 USD . This means that FAZ is currently overvalued and has a potential downside of -45.95%.
Direxion Daily Financial has no consensus analysts rating.
According to our own proprietary Forecast Model, FAZ Direxion Daily Financial will be worth about 2.6 in July 2026. The stock is currently trading at 4.44. This means that the stock has a potential downside of -41.44%.
Issuer | Target | Up/Down from current |
---|---|---|
Wallstreet Target Price | - | - |
Analysts Target Price | - | - |
ValueRay Target Price | 2.6 | -41.4% |