BABU vs. TMF

Last updated Jun 4, 2026

BABU (Direxion Daily BABA Bull 2X ETF) and TMF (Direxion Daily 20+ Year Treasury Bull 3X ETF) are both exchange-traded funds - BABU is a Leveraged Equities fund tracking the Alibaba Group Holding Limited (BABA), while TMF is a Leveraged Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index (300%). Both are passively managed. At a 0.10 correlation, their price movements are largely independent. BABU charges 0.97%/yr vs 1.01%/yr for TMF.

Performance

BABU vs. TMF - 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 20+ Year Treasury Bull 3X ETF (TMF). 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*: —

TMF

• 1D: -1.14%
• 1M: 1.22%
• YTD: -6.13%
• 6M: -11.63%
• 1Y: 0.90%
• 3Y*: -20.78%
• 5Y*: -30.52%
• 10Y*: -16.56%

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

BABU vs. TMF - Yearly Performance Comparison

	2026 (YTD)
BABU Direxion Daily BABA Bull 2X ETF	-44.84%
TMF Direxion Daily 20+ Year Treasury Bull 3X ETF	-8.53%

Correlation

The correlation between BABU and TMF is 0.10, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (All Time) Calculated using the full available price history since Feb 12, 2026	0.10

Return for Risk

BABU vs. TMF — Risk / Return Rank

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

TMF

TMF Risk / Return Rank: 9
TMF Sharpe Ratio Rank: 9
TMF Sortino Ratio Rank: 9
TMF Omega Ratio Rank: 9
TMF Calmar Ratio Rank: 9
TMF Martin Ratio Rank: 9

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. TMF - 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 20+ Year Treasury Bull 3X ETF (TMF). 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	TMF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	0.03	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	-0.66	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	-0.38	—
Sharpe Ratio (All Time) Calculated using the full available price history	-1.05	-0.14	-0.91

Drawdowns

BABU vs. TMF - Drawdown Comparison

The maximum BABU drawdown since its inception was -49.17%, smaller than the maximum TMF drawdown of -92.89%. Use the drawdown chart below to compare losses from any high point for BABU and TMF.

Drawdown Indicators

	BABU	TMF	Difference
Max Drawdown Largest peak-to-trough decline	-49.17%	-92.89%	+43.72%
Max Drawdown (1Y) Largest decline over 1 year	—	-26.51%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-56.31%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-88.81%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-92.89%	—
Current Drawdown Current decline from peak	-44.84%	-92.23%	+47.39%
Average Drawdown Average peak-to-trough decline	-35.05%	-43.63%	+8.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	11.49%	—

Volatility

Volatility by Period

	BABU	TMF	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	8.09%	—
Volatility (6M) Calculated over the trailing 6-month period	—	19.01%	—
Volatility (1Y) Calculated over the trailing 1-year period	82.22%	28.76%	+53.46%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	82.22%	46.75%	+35.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	82.22%	43.92%	+38.30%

BABU vs. TMF - Expense Ratio Comparison

BABU has a 0.97% expense ratio, which is lower than TMF's 1.01% expense ratio.

Dividends

BABU vs. TMF - Dividend Comparison

BABU's dividend yield for the trailing twelve months is around 0.36%, less than TMF's 4.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
BABU Direxion Daily BABA Bull 2X ETF	0.36%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TMF Direxion Daily 20+ Year Treasury Bull 3X ETF	4.15%	4.06%	4.29%	2.82%	1.62%	0.13%	2.23%	0.94%	1.49%	0.41%

Frequently Asked Questions

Can I hold both BABU and TMF in my portfolio?

BABU and TMF have a correlation of 0.10, 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 TMF?

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 TMF?

BABU is cheaper with a 0.97% expense ratio, compared with 1.01% for TMF.

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

TMF has the higher dividend yield at 4.15%, compared with 0.36% for BABU.

What is the main difference between BABU and TMF?

BABU is categorized as Leveraged Equities, while TMF is Leveraged Bonds. BABU tracks Alibaba Group Holding Limited (BABA), while TMF tracks ICE U.S. Treasury 20+ Year Bond Index (300%). Their fees differ too: 0.97% for BABU and 1.01% for TMF.