DFEN vs. IWMI

Last updated Jun 21, 2026

DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) and IWMI (NEOS Russell 2000 High Income ETF) are both exchange-traded funds - DFEN is a Leveraged Equities fund tracking the Dow Jones U.S. Select Aerospace & Defense Index (300% Daily), while IWMI is a Derivative Income fund actively managed by Neos. DFEN is passively managed, while IWMI is actively managed. Over the past year, DFEN returned 87.39% vs 37.32% for IWMI. A 0.59 correlation means they provide meaningful diversification when combined. DFEN charges 0.96%/yr vs 0.68%/yr for IWMI.

Performance

DFEN vs. IWMI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) and NEOS Russell 2000 High Income ETF (IWMI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFEN achieves a 20.97% return, which is significantly higher than IWMI's 16.41% return.

DFEN

• 1D: -4.32%
• 1M: 17.09%
• YTD: 20.97%
• 6M: 21.25%
• 1Y: 87.39%
• 3Y*: 67.96%
• 5Y*: 33.49%
• 10Y*: —

IWMI

• 1D: 1.72%
• 1M: 3.75%
• YTD: 16.41%
• 6M: 14.83%
• 1Y: 37.32%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

DFEN vs. IWMI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	20.97%	156.62%	16.08%
IWMI NEOS Russell 2000 High Income ETF	16.41%	14.97%	6.58%

Correlation

The correlation between DFEN and IWMI is 0.57, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.57
Correlation (All Time) Calculated using the full available price history since Jun 25, 2024	0.59

The correlation between DFEN and IWMI has been stable across timeframes, ranging from 0.57 to 0.59 - a consistent structural relationship.

DFEN vs. IWMI - Sectors Allocation Comparison

Sectors	DFEN	IWMI
Industrials	18.7%	17.7%
Technology	0.0%	17.0%
Basic Materials	-	4.8%
Communication Services	-	2.4%
Consumer Cyclical	-	8.4%
Consumer Defensive	-	2.4%
Energy	-	6.1%
Financial Services	-	15.7%
Healthcare	-	16.5%
Real Estate	-	6.1%
Utilities	-	2.9%

Return for Risk

DFEN vs. IWMI — Risk / Return Rank

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

DFEN

DFEN Risk / Return Rank: 40
DFEN Sharpe Ratio Rank: 41
DFEN Sortino Ratio Rank: 42
DFEN Omega Ratio Rank: 37
DFEN Calmar Ratio Rank: 46
DFEN Martin Ratio Rank: 36

IWMI

IWMI Risk / Return Rank: 82
IWMI Sharpe Ratio Rank: 80
IWMI Sortino Ratio Rank: 80
IWMI Omega Ratio Rank: 76
IWMI Calmar Ratio Rank: 85
IWMI Martin Ratio Rank: 88

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.

DFEN vs. IWMI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) and NEOS Russell 2000 High Income ETF (IWMI). 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.

	DFEN	IWMI	Difference
Sharpe ratio: Return per unit of total volatility	1.40	2.42	-1.02
Sortino ratio: Return per unit of downside risk	2.04	3.33	-1.28
Omega ratio: Gain probability vs. loss probability	1.24	1.42	-0.18
Calmar ratio: Return relative to maximum drawdown	2.21	4.43	-2.21
Martin ratio: Return relative to average drawdown	5.08	18.24	-13.17

DFEN vs. IWMI - Sharpe Ratio Comparison

The current DFEN Sharpe Ratio is 1.40, which is lower than the IWMI Sharpe Ratio of 2.42. The chart below compares the historical Sharpe Ratios of DFEN and IWMI, 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

DFEN vs. IWMI - Drawdown Comparison

The maximum DFEN drawdown since its inception was -91.36%, which is greater than IWMI's maximum drawdown of -23.88%. Use the drawdown chart below to compare losses from any high point for DFEN and IWMI.

Drawdown Indicators

	DFEN	IWMI	Difference
Max Drawdown Largest peak-to-trough decline	-91.36%	-23.88%	-67.48%
Max Drawdown (1Y) Largest decline over 1 year	-41.75%	-8.40%	-33.35%
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	-20.73%	0.00%	-20.73%
Average Drawdown Average peak-to-trough decline	-45.15%	-4.04%	-41.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	18.16%	2.03%	+16.13%

Volatility

DFEN vs. IWMI - Volatility Comparison

Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) has a higher volatility of 25.14% compared to NEOS Russell 2000 High Income ETF (IWMI) at 5.41%. This indicates that DFEN's price experiences larger fluctuations and is considered to be riskier than IWMI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFEN	IWMI	Difference
Volatility (1M) Calculated over the trailing 1-month period	25.14%	5.41%	+19.73%
Volatility (6M) Calculated over the trailing 6-month period	56.03%	11.46%	+44.57%
Volatility (1Y) Calculated over the trailing 1-year period	66.17%	15.38%	+50.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	60.80%	17.97%	+42.83%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	71.64%	17.97%	+53.67%

DFEN vs. IWMI - Expense Ratio Comparison

DFEN has a 0.96% expense ratio, which is higher than IWMI's 0.68% expense ratio.

Dividends

DFEN vs. IWMI - Dividend Comparison

DFEN's dividend yield for the trailing twelve months is around 7.38%, less than IWMI's 14.51% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	7.38%	8.89%	14.12%	1.13%	0.46%	1.89%	0.48%	0.50%	1.07%	1.50%
IWMI NEOS Russell 2000 High Income ETF	14.51%	14.05%	8.78%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DFEN and IWMI in my portfolio?

DFEN and IWMI have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFEN or IWMI?

DFEN has higher volatility (25.14%) compared to IWMI (5.41%). In terms of maximum drawdown, DFEN dropped -91.36% vs IWMI's -23.88%.

Which ETF is better, DFEN or IWMI?

On 1-year performance, DFEN leads with 87.39% vs 37.32% for IWMI. On fees, IWMI is cheaper at 0.68% per year. On volatility, IWMI has been the lower-risk option at 5.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFEN or IWMI?

Over the 1-year period, DFEN has performed better with a 87.39% return vs 37.32%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFEN or IWMI?

IWMI is cheaper with a 0.68% expense ratio, compared with 0.96% for DFEN.

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

IWMI has the higher dividend yield at 14.51%, compared with 7.38% for DFEN.

What is the main difference between DFEN and IWMI?

DFEN is categorized as Leveraged Equities, while IWMI is Derivative Income. They also come from different issuers: Direxion and Neos. Their fees differ too: 0.96% for DFEN and 0.68% for IWMI.

Which has better risk-adjusted returns?

IWMI currently has the higher Sharpe Ratio (2.42 vs 1.40), 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.