ALAI vs. DFEN

Last updated Jun 13, 2026

ALAI (Alger AI Enablers & Adopters ETF) and DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) are both exchange-traded funds - ALAI is a Technology Equities fund actively managed by Alger, while DFEN is a Leveraged Equities fund tracking the Dow Jones U.S. Select Aerospace & Defense Index (300%). ALAI is actively managed, while DFEN is passively managed. Over the past year, ALAI returned 51.94% vs 75.01% for DFEN. At a 0.45 correlation, their price movements are largely independent. ALAI charges 0.55%/yr vs 0.99%/yr for DFEN.

Performance

ALAI vs. DFEN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Alger AI Enablers & Adopters ETF (ALAI) and Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ALAI achieves a 20.13% return, which is significantly higher than DFEN's 13.12% return.

ALAI

• 1D: 0.81%
• 1M: -0.06%
• YTD: 20.13%
• 6M: 20.63%
• 1Y: 51.94%
• 3Y*: —
• 5Y*: —
• 10Y*: —

DFEN

• 1D: -2.71%
• 1M: 9.77%
• YTD: 13.12%
• 6M: 20.44%
• 1Y: 75.01%
• 3Y*: 64.38%
• 5Y*: 29.22%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

ALAI vs. DFEN - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ALAI Alger AI Enablers & Adopters ETF	20.13%	39.81%	32.38%
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	13.12%	156.62%	21.20%

Correlation

The correlation between ALAI and DFEN is 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.43
Correlation (All Time) Calculated using the full available price history since Apr 5, 2024	0.45

ALAI vs. DFEN - Sectors Allocation Comparison

Sectors	ALAI	DFEN
Technology	55.9%	0.0%
Communication Services	20.1%	-
Consumer Cyclical	13.7%	-
Industrials	3.2%	19.7%
Healthcare	2.8%	-
Financial Services	2.3%	-
Utilities	2.0%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Real Estate	-	-

Return for Risk

ALAI vs. DFEN — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ALAI

ALAI Risk / Return Rank: 63
ALAI Sharpe Ratio Rank: 74
ALAI Sortino Ratio Rank: 65
ALAI Omega Ratio Rank: 64
ALAI Calmar Ratio Rank: 60
ALAI Martin Ratio Rank: 54

DFEN

DFEN Risk / Return Rank: 38
DFEN Sharpe Ratio Rank: 37
DFEN Sortino Ratio Rank: 40
DFEN Omega Ratio Rank: 36
DFEN Calmar Ratio Rank: 42
DFEN Martin Ratio Rank: 33

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ALAI vs. DFEN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Alger AI Enablers & Adopters ETF (ALAI) and Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ALAI	DFEN	Difference
Sharpe ratio: Return per unit of total volatility	2.06	1.18	+0.89
Sortino ratio: Return per unit of downside risk	2.60	1.85	+0.75
Omega ratio: Gain probability vs. loss probability	1.34	1.22	+0.12
Calmar ratio: Return relative to maximum drawdown	2.64	1.85	+0.79
Martin ratio: Return relative to average drawdown	8.30	4.29	+4.01

ALAI vs. DFEN - Sharpe Ratio Comparison

The current ALAI Sharpe Ratio is 2.06, which is higher than the DFEN Sharpe Ratio of 1.18. The chart below compares the historical Sharpe Ratios of ALAI and DFEN, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ALAI vs. DFEN - Drawdown Comparison

The maximum ALAI drawdown since its inception was -29.36%, smaller than the maximum DFEN drawdown of -91.36%. Use the drawdown chart below to compare losses from any high point for ALAI and DFEN.

Drawdown Indicators

	ALAI	DFEN	Difference
Max Drawdown Largest peak-to-trough decline	-29.36%	-91.36%	+62.00%
Max Drawdown (1Y) Largest decline over 1 year	-19.48%	-41.75%	+22.27%
Max Drawdown (3Y) Largest decline over 3 years	—	-43.13%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-55.30%	—
Current Drawdown Current decline from peak	-7.13%	-25.87%	+18.74%
Average Drawdown Average peak-to-trough decline	-5.15%	-45.20%	+40.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.18%	17.99%	-11.81%

Volatility

ALAI vs. DFEN - Volatility Comparison

The current volatility for Alger AI Enablers & Adopters ETF (ALAI) is 9.13%, while Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) has a volatility of 27.31%. This indicates that ALAI experiences smaller price fluctuations and is considered to be less risky than DFEN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ALAI	DFEN	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.13%	27.31%	-18.18%
Volatility (6M) Calculated over the trailing 6-month period	19.84%	55.81%	-35.97%
Volatility (1Y) Calculated over the trailing 1-year period	24.96%	65.81%	-40.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.59%	60.74%	-32.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.59%	71.66%	-43.07%

ALAI vs. DFEN - Expense Ratio Comparison

ALAI has a 0.55% expense ratio, which is lower than DFEN's 0.99% expense ratio.

Dividends

ALAI vs. DFEN - Dividend Comparison

ALAI's dividend yield for the trailing twelve months is around 1.25%, less than DFEN's 7.89% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
ALAI Alger AI Enablers & Adopters ETF	1.25%	1.50%	0.66%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	7.89%	8.89%	14.12%	1.13%	0.46%	1.89%	0.48%	0.50%	1.07%	1.50%

Frequently Asked Questions

Can I hold both ALAI and DFEN in my portfolio?

ALAI and DFEN have a correlation of 0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ALAI or DFEN?

DFEN has higher volatility (27.31%) compared to ALAI (9.13%). In terms of maximum drawdown, ALAI dropped -29.36% vs DFEN's -91.36%.

Which ETF is better, ALAI or DFEN?

On 1-year performance, DFEN leads with 75.01% vs 51.94% for ALAI. On fees, ALAI is cheaper at 0.55% per year. On volatility, ALAI has been the lower-risk option at 9.13%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ALAI or DFEN?

Over the 1-year period, DFEN has performed better with a 75.01% return vs 51.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ALAI or DFEN?

ALAI is cheaper with a 0.55% expense ratio, compared with 0.99% for DFEN.

Which ETF pays a higher dividend yield, ALAI or DFEN?

DFEN has the higher dividend yield at 7.89%, compared with 1.25% for ALAI.

What is the main difference between ALAI and DFEN?

ALAI is categorized as Technology Equities, while DFEN is Leveraged Equities. They also come from different issuers: Alger and Direxion. Their fees differ too: 0.55% for ALAI and 0.99% for DFEN.

Which has better risk-adjusted returns?

ALAI currently has the higher Sharpe Ratio (2.06 vs 1.18), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.