DFEN vs. MSFO

Last updated Jun 13, 2026

DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) and MSFO (YieldMax MSFT Option Income Strategy ETF ) are both exchange-traded funds - DFEN is a Leveraged Equities fund tracking the Dow Jones U.S. Select Aerospace & Defense Index (300%), while MSFO is a Options Trading fund actively managed by YieldMax. DFEN is passively managed, while MSFO is actively managed. Over the past year, DFEN returned 75.01% vs -13.71% for MSFO. At a 0.23 correlation, their price movements are largely independent. Both charge a 0.99% expense ratio.

Performance

DFEN vs. MSFO - Performance Comparison

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

Returns By Period

In the year-to-date period, DFEN achieves a 13.12% return, which is significantly higher than MSFO's -16.15% return.

DFEN

• 1D: -2.71%
• 1M: 9.77%
• YTD: 13.12%
• 6M: 20.44%
• 1Y: 75.01%
• 3Y*: 64.38%
• 5Y*: 29.22%
• 10Y*: —

MSFO

• 1D: 0.02%
• 1M: -5.33%
• YTD: -16.15%
• 6M: -15.35%
• 1Y: -13.71%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

DFEN vs. MSFO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	13.12%	156.62%	27.07%	32.38%
MSFO YieldMax MSFT Option Income Strategy ETF	-16.15%	15.69%	10.34%	18.74%

Correlation

The correlation between DFEN and MSFO is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.18
Correlation (All Time) Calculated using the full available price history since Aug 25, 2023	0.23

Return for Risk

DFEN vs. MSFO — Risk / Return Rank

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

DFEN

DFEN Risk / Return Rank: 38
DFEN Sharpe Ratio Rank: 37
DFEN Sortino Ratio Rank: 40
DFEN Omega Ratio Rank: 36
DFEN Calmar Ratio Rank: 42
DFEN Martin Ratio Rank: 33

MSFO

MSFO Risk / Return Rank: 5
MSFO Sharpe Ratio Rank: 4
MSFO Sortino Ratio Rank: 4
MSFO Omega Ratio Rank: 4
MSFO Calmar Ratio Rank: 6
MSFO Martin Ratio Rank: 5

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. MSFO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) and YieldMax MSFT Option Income Strategy ETF (MSFO). 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	MSFO	Difference
Sharpe ratio: Return per unit of total volatility	1.18	-0.64	+1.81
Sortino ratio: Return per unit of downside risk	1.85	-0.75	+2.61
Omega ratio: Gain probability vs. loss probability	1.22	0.90	+0.31
Calmar ratio: Return relative to maximum drawdown	1.85	-0.47	+2.33
Martin ratio: Return relative to average drawdown	4.29	-1.02	+5.31

DFEN vs. MSFO - Sharpe Ratio Comparison

The current DFEN Sharpe Ratio is 1.18, which is higher than the MSFO Sharpe Ratio of -0.64. The chart below compares the historical Sharpe Ratios of DFEN and MSFO, 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. MSFO - Drawdown Comparison

The maximum DFEN drawdown since its inception was -91.36%, which is greater than MSFO's maximum drawdown of -29.29%. Use the drawdown chart below to compare losses from any high point for DFEN and MSFO.

Drawdown Indicators

	DFEN	MSFO	Difference
Max Drawdown Largest peak-to-trough decline	-91.36%	-29.29%	-62.07%
Max Drawdown (1Y) Largest decline over 1 year	-41.75%	-29.29%	-12.46%
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	-25.87%	-23.17%	-2.70%
Average Drawdown Average peak-to-trough decline	-45.20%	-6.69%	-38.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	17.99%	13.60%	+4.39%

Volatility

DFEN vs. MSFO - Volatility Comparison

Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) has a higher volatility of 27.31% compared to YieldMax MSFT Option Income Strategy ETF (MSFO) at 8.81%. This indicates that DFEN's price experiences larger fluctuations and is considered to be riskier than MSFO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFEN	MSFO	Difference
Volatility (1M) Calculated over the trailing 1-month period	27.31%	8.81%	+18.50%
Volatility (6M) Calculated over the trailing 6-month period	55.81%	19.32%	+36.49%
Volatility (1Y) Calculated over the trailing 1-year period	65.81%	21.81%	+44.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	60.74%	19.81%	+40.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	71.66%	19.81%	+51.85%

DFEN vs. MSFO - Expense Ratio Comparison

Both DFEN and MSFO have an expense ratio of 0.99%.

Dividends

DFEN vs. MSFO - Dividend Comparison

DFEN's dividend yield for the trailing twelve months is around 7.89%, less than MSFO's 44.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	7.89%	8.89%	14.12%	1.13%	0.46%	1.89%	0.48%	0.50%	1.07%	1.50%
MSFO YieldMax MSFT Option Income Strategy ETF	44.05%	33.91%	35.15%	6.44%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DFEN and MSFO in my portfolio?

DFEN and MSFO have a correlation of 0.18, 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 MSFO?

DFEN has higher volatility (27.31%) compared to MSFO (8.81%). In terms of maximum drawdown, DFEN dropped -91.36% vs MSFO's -29.29%.

Which ETF is better, DFEN or MSFO?

On 1-year performance, DFEN leads with 75.01% vs -13.71% for MSFO. Both ETFs have the same 0.99% expense ratio. On volatility, MSFO has been the lower-risk option at 8.81%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFEN or MSFO?

Over the 1-year period, DFEN has performed better with a 75.01% return vs -13.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFEN or MSFO?

DFEN and MSFO have the same expense ratio: 0.99% per year.

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

MSFO has the higher dividend yield at 44.05%, compared with 7.89% for DFEN.

What is the main difference between DFEN and MSFO?

DFEN is categorized as Leveraged Equities, while MSFO is Options Trading. They also come from different issuers: Direxion and YieldMax.

Which has better risk-adjusted returns?

DFEN currently has the higher Sharpe Ratio (1.18 vs -0.64), 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.