BABU vs. USGG

Last updated Jun 24, 2026

BABU (Direxion Daily BABA Bull 2X ETF) and USGG (Leverage Shares 2X Long USAR Daily ETF) are both Leveraged Equities funds - BABU tracks the Alibaba Group Holding Limited (BABA) while USGG tracks the USA Rare Earth, Inc. (USAR). Both are passively managed. At a 0.30 correlation, their price movements are largely independent. BABU charges 0.97%/yr vs 0.75%/yr for USGG.

Performance

BABU vs. USGG - Performance Comparison

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

Returns By Period

BABU

• 1D: -4.55%
• 1M: -37.71%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

USGG

• 1D: -10.14%
• 1M: -27.15%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

BABU vs. USGG - Yearly Performance Comparison

	2026 (YTD)
BABU Direxion Daily BABA Bull 2X ETF	-64.16%
USGG Leverage Shares 2X Long USAR Daily ETF	-31.97%

Correlation

The correlation between BABU and USGG is 0.30, 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 11, 2026	0.30

Return for Risk

BABU vs. USGG - Risk-Adjusted Trends Comparison

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

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

Drawdowns

BABU vs. USGG - Drawdown Comparison

The maximum BABU drawdown since its inception was -64.16%, smaller than the maximum USGG drawdown of -77.74%. Use the drawdown chart below to compare losses from any high point for BABU and USGG.

Drawdown Indicators

	BABU	USGG	Difference
Max Drawdown Largest peak-to-trough decline	-64.16%	-77.74%	+13.58%
Current Drawdown Current decline from peak	-64.16%	-58.39%	-5.77%
Average Drawdown Average peak-to-trough decline	-37.68%	-47.00%	+9.32%

Volatility

Volatility by Period

	BABU	USGG	Difference
Volatility (1Y) Calculated over the trailing 1-year period	78.53%	224.62%	-146.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	78.53%	224.62%	-146.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	78.53%	224.62%	-146.09%

BABU vs. USGG - Expense Ratio Comparison

BABU has a 0.97% expense ratio, which is higher than USGG's 0.75% expense ratio.

Dividends

BABU vs. USGG - Dividend Comparison

BABU's dividend yield for the trailing twelve months is around 1.12%, while USGG has not paid dividends to shareholders.

Position	TTM
BABU Direxion Daily BABA Bull 2X ETF	1.12%
USGG Leverage Shares 2X Long USAR Daily ETF	0.00%

Frequently Asked Questions

Can I hold both BABU and USGG in my portfolio?

BABU and USGG have a correlation of 0.30, 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 USGG?

On fees, USGG is cheaper at 0.75% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, BABU or USGG?

USGG is cheaper with a 0.75% expense ratio, compared with 0.97% for BABU.

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

BABU has the higher dividend yield at 1.12%, compared with 0.00% for USGG.

What is the main difference between BABU and USGG?

BABU tracks Alibaba Group Holding Limited (BABA), while USGG tracks USA Rare Earth, Inc. (USAR). They also come from different issuers: Direxion and Leverage Shares. Their fees differ too: 0.97% for BABU and 0.75% for USGG.