CARU vs. ERX

Last updated Jul 15, 2026

CARU (Max Auto Industry 3X Leveraged ETN) and ERX (Direxion Daily Energy Bull 2X Shares) are both Leveraged Equities funds - CARU tracks the Prime Auto Industry Index - Benchmark TR Net (--300%) while ERX tracks the Energy Select Sector Index (300%). Both are passively managed. Over the past 3 years, CARU returned -13.52%/yr vs 19.53%/yr for ERX. At a 0.18 correlation, their price movements are largely independent. CARU charges 0.95%/yr vs 1.09%/yr for ERX.

Performance

CARU vs. ERX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Max Auto Industry 3X Leveraged ETN (CARU) and Direxion Daily Energy Bull 2X Shares (ERX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CARU achieves a -25.64% return, which is significantly lower than ERX's 57.25% return.

CARU

• 1D: 1.71%
• 1M: -1.32%
• 6M: -33.82%
• YTD: -25.64%
• 1Y: -21.92%
• 3Y*: -13.52%
• 5Y*: —
• 10Y*: —

ERX

• 1D: 0.51%
• 1M: -1.69%
• 6M: 42.92%
• YTD: 57.25%
• 1Y: 60.53%
• 3Y*: 19.53%
• 5Y*: 32.54%
• 10Y*: -10.34%

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

CARU vs. ERX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
CARU Max Auto Industry 3X Leveraged ETN	-25.64%	7.29%	23.44%	-9.74%
ERX Direxion Daily Energy Bull 2X Shares	57.25%	2.79%	1.09%	10.42%

Correlation

The correlation between CARU and ERX is -0.13, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.13
Correlation (3Y) Calculated over the trailing 3-year period	0.17
Correlation (All Time) Calculated using the full available price history since Jun 28, 2023	0.18

The correlation between CARU and ERX shifts across timeframes, from -0.13 (1 year) to 0.18 (all time), reflecting how their relationship changes across market environments.

Return for Risk

CARU vs. ERX — Risk / Return Rank

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

CARU

CARU Risk / Return Rank: 7
CARU Sharpe Ratio Rank: 6
CARU Sortino Ratio Rank: 8
CARU Omega Ratio Rank: 8
CARU Calmar Ratio Rank: 6
CARU Martin Ratio Rank: 5

ERX

ERX Risk / Return Rank: 47
ERX Sharpe Ratio Rank: 52
ERX Sortino Ratio Rank: 47
ERX Omega Ratio Rank: 44
ERX Calmar Ratio Rank: 50
ERX Martin Ratio Rank: 41

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.

CARU vs. ERX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Max Auto Industry 3X Leveraged ETN (CARU) and Direxion Daily Energy Bull 2X Shares (ERX). 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.

	CARU	ERX	Difference
Sharpe ratio: Return per unit of total volatility	-0.31	1.44	-1.76
Sortino ratio: Return per unit of downside risk	0.00	1.94	-1.93
Omega ratio: Gain probability vs. loss probability	1.00	1.24	-0.24
Calmar ratio: Return relative to maximum drawdown	-0.43	2.03	-2.46
Martin ratio: Return relative to average drawdown	-0.81	5.31	-6.12

CARU vs. ERX - Sharpe Ratio Comparison

The current CARU Sharpe Ratio is -0.31, which is lower than the ERX Sharpe Ratio of 1.44. The chart below compares the historical Sharpe Ratios of CARU and ERX, 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

CARU vs. ERX - Drawdown Comparison

The maximum CARU drawdown since its inception was -66.44%, smaller than the maximum ERX drawdown of -99.54%. Use the drawdown chart below to compare losses from any high point for CARU and ERX.

Drawdown Indicators

	CARU	ERX	Difference
Max Drawdown Largest peak-to-trough decline	-66.44%	-99.54%	+33.10%
Max Drawdown (1Y) Largest decline over 1 year	-50.87%	-29.97%	-20.90%
Max Drawdown (3Y) Largest decline over 3 years	-66.44%	-42.34%	-24.10%
Max Drawdown (5Y) Largest decline over 5 years	—	-46.90%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-98.59%	—
Current Drawdown Current decline from peak	-41.28%	-92.06%	+50.78%
Average Drawdown Average peak-to-trough decline	-36.06%	-67.17%	+31.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	27.03%	11.47%	+15.56%

Volatility

CARU vs. ERX - Volatility Comparison

Max Auto Industry 3X Leveraged ETN (CARU) has a higher volatility of 21.49% compared to Direxion Daily Energy Bull 2X Shares (ERX) at 14.45%. This indicates that CARU's price experiences larger fluctuations and is considered to be riskier than ERX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CARU	ERX	Difference
Volatility (1M) Calculated over the trailing 1-month period	21.49%	14.45%	+7.04%
Volatility (6M) Calculated over the trailing 6-month period	53.47%	33.71%	+19.76%
Volatility (1Y) Calculated over the trailing 1-year period	70.46%	42.21%	+28.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	80.09%	51.79%	+28.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	80.09%	68.94%	+11.15%

CARU vs. ERX - Expense Ratio Comparison

CARU has a 0.95% expense ratio, which is lower than ERX's 1.09% expense ratio.

Dividends

CARU vs. ERX - Dividend Comparison

CARU has not paid dividends to shareholders, while ERX's dividend yield for the trailing twelve months is around 1.62%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
CARU Max Auto Industry 3X Leveraged ETN	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ERX Direxion Daily Energy Bull 2X Shares	1.62%	2.54%	2.94%	3.17%	2.23%	2.16%	2.35%	1.56%	3.10%	0.85%

Frequently Asked Questions

Can I hold both CARU and ERX in my portfolio?

CARU and ERX have a correlation of -0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CARU or ERX?

CARU has higher volatility (21.49%) compared to ERX (14.45%). In terms of maximum drawdown, CARU dropped -66.44% vs ERX's -99.54%.

Which ETF is better, CARU or ERX?

On 3-year performance, ERX leads with 19.53% vs -13.52% for CARU. On fees, CARU is cheaper at 0.95% per year. On volatility, ERX has been the lower-risk option at 14.45%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CARU or ERX?

Over the 3-year period, ERX has performed better with a 19.53% return vs -13.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CARU or ERX?

CARU is cheaper with a 0.95% expense ratio, compared with 1.09% for ERX.

Which ETF pays a higher dividend yield, CARU or ERX?

ERX has the higher dividend yield at 1.62%, compared with 0.00% for CARU.

What is the main difference between CARU and ERX?

CARU tracks Prime Auto Industry Index - Benchmark TR Net (--300%), while ERX tracks Energy Select Sector Index (300%). They also come from different issuers: Max and Direxion. Their fees differ too: 0.95% for CARU and 1.09% for ERX.

Which has better risk-adjusted returns?

ERX currently has the higher Sharpe Ratio (1.44 vs -0.31), 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.