BABU vs. MUU

Last updated Jun 4, 2026

BABU (Direxion Daily BABA Bull 2X ETF) and MUU (Direxion Daily MU Bull 2X Shares) are both Leveraged Equities funds from Direxion. BABU is passively managed, while MUU is actively managed. At a 0.32 correlation, their price movements are largely independent. BABU charges 0.97%/yr vs 1.06%/yr for MUU.

Performance

BABU vs. MUU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily BABA Bull 2X ETF (BABU) and Direxion Daily MU Bull 2X Shares (MUU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

BABU

• 1D: -5.41%
• 1M: -11.25%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

MUU

• 1D: 3.08%
• 1M: 218.90%
• YTD: 961.23%
• 6M: 1,422.01%
• 1Y: 6,522.95%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

BABU vs. MUU - Yearly Performance Comparison

	2026 (YTD)
BABU Direxion Daily BABA Bull 2X ETF	-44.84%
MUU Direxion Daily MU Bull 2X Shares	455.63%

Correlation

The correlation between BABU and MUU is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Feb 12, 2026	0.32

Return for Risk

BABU vs. MUU — Risk / Return Rank

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

MUU

MUU Risk / Return Rank: 99
MUU Sharpe Ratio Rank: 100
MUU Sortino Ratio Rank: 98
MUU Omega Ratio Rank: 97
MUU Calmar Ratio Rank: 100
MUU Martin Ratio Rank: 100

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.

BABU vs. MUU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily BABA Bull 2X ETF (BABU) and Direxion Daily MU Bull 2X Shares (MUU). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	BABU	MUU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	50.40	—
Sharpe Ratio (All Time) Calculated using the full available price history	-1.05	6.68	-7.73

Drawdowns

BABU vs. MUU - Drawdown Comparison

The maximum BABU drawdown since its inception was -49.17%, smaller than the maximum MUU drawdown of -75.07%. Use the drawdown chart below to compare losses from any high point for BABU and MUU.

Drawdown Indicators

	BABU	MUU	Difference
Max Drawdown Largest peak-to-trough decline	-49.17%	-75.07%	+25.90%
Max Drawdown (1Y) Largest decline over 1 year	—	-52.72%	—
Current Drawdown Current decline from peak	-44.84%	0.00%	-44.84%
Average Drawdown Average peak-to-trough decline	-35.05%	-23.44%	-11.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	15.51%	—

Volatility

Volatility by Period

	BABU	MUU	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	54.78%	—
Volatility (6M) Calculated over the trailing 6-month period	—	105.07%	—
Volatility (1Y) Calculated over the trailing 1-year period	82.22%	131.77%	-49.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	82.22%	133.67%	-51.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	82.22%	133.67%	-51.45%

BABU vs. MUU - Expense Ratio Comparison

BABU has a 0.97% expense ratio, which is lower than MUU's 1.06% expense ratio.

Dividends

BABU vs. MUU - Dividend Comparison

BABU's dividend yield for the trailing twelve months is around 0.36%, less than MUU's 0.46% yield.

Position	TTM	2025	2024
BABU Direxion Daily BABA Bull 2X ETF	0.36%	0.00%	0.00%
MUU Direxion Daily MU Bull 2X Shares	0.46%	4.27%	0.31%

Frequently Asked Questions

Can I hold both BABU and MUU in my portfolio?

BABU and MUU have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, BABU or MUU?

On fees, BABU is cheaper at 0.97% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, BABU or MUU?

BABU is cheaper with a 0.97% expense ratio, compared with 1.06% for MUU.

Which ETF pays a higher dividend yield, BABU or MUU?

MUU has the higher dividend yield at 0.46%, compared with 0.36% for BABU.

What is the main difference between BABU and MUU?

Their fees differ too: 0.97% for BABU and 1.06% for MUU.