DFEN vs. PPA

Last updated Jun 23, 2026

DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) and PPA (Invesco Aerospace & Defense 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 PPA is a Aerospace & Defense fund tracking the SPADE Defense Index. Both are passively managed. Over the past 5 years, DFEN returned 30.72%/yr vs 18.72%/yr for PPA. With a 0.96 correlation, they move nearly in lockstep. DFEN charges 0.96%/yr vs 0.58%/yr for PPA.

Performance

DFEN vs. PPA - Performance Comparison

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

Returns By Period

In the year-to-date period, DFEN achieves a 15.08% return, which is significantly higher than PPA's 10.34% return.

DFEN

• 1D: -4.87%
• 1M: 11.39%
• YTD: 15.08%
• 6M: 7.37%
• 1Y: 78.27%
• 3Y*: 68.61%
• 5Y*: 30.72%
• 10Y*: —

PPA

• 1D: -1.44%
• 1M: 1.49%
• YTD: 10.34%
• 6M: 8.28%
• 1Y: 28.04%
• 3Y*: 29.01%
• 5Y*: 18.72%
• 10Y*: 17.85%

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

DFEN vs. PPA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	15.08%	156.62%	27.07%	24.70%	6.99%	12.72%	-70.23%	95.09%	-32.86%	83.64%
PPA Invesco Aerospace & Defense ETF	10.34%	37.15%	25.28%	18.41%	9.52%	7.09%	0.45%	39.63%	-7.51%	21.22%

Correlation

The correlation between DFEN and PPA is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (All Time) Calculated using the full available price history since May 3, 2017	0.96

The correlation between DFEN and PPA has been stable across timeframes, ranging from 0.94 to 0.97 - a consistent structural relationship.

DFEN vs. PPA - Sectors Allocation Comparison

Sectors	DFEN	PPA
Industrials	18.7%	90.6%
Technology	0.0%	9.2%
Basic Materials	-	-
Communication Services	-	0.1%
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	0.1%
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

DFEN vs. PPA — Risk / Return Rank

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

DFEN

DFEN Risk / Return Rank: 35
DFEN Sharpe Ratio Rank: 34
DFEN Sortino Ratio Rank: 37
DFEN Omega Ratio Rank: 33
DFEN Calmar Ratio Rank: 39
DFEN Martin Ratio Rank: 31

PPA

PPA Risk / Return Rank: 40
PPA Sharpe Ratio Rank: 40
PPA Sortino Ratio Rank: 42
PPA Omega Ratio Rank: 37
PPA Calmar Ratio Rank: 42
PPA Martin Ratio Rank: 38

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. PPA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) and Invesco Aerospace & Defense ETF (PPA). 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	PPA	Difference
Sharpe ratio: Return per unit of total volatility	1.19	1.40	-0.21
Sortino ratio: Return per unit of downside risk	1.86	2.08	-0.22
Omega ratio: Gain probability vs. loss probability	1.22	1.24	-0.02
Calmar ratio: Return relative to maximum drawdown	1.88	2.06	-0.17
Martin ratio: Return relative to average drawdown	4.31	5.73	-1.42

DFEN vs. PPA - Sharpe Ratio Comparison

The current DFEN Sharpe Ratio is 1.19, which is comparable to the PPA Sharpe Ratio of 1.40. The chart below compares the historical Sharpe Ratios of DFEN and PPA, 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. PPA - Drawdown Comparison

The maximum DFEN drawdown since its inception was -91.36%, which is greater than PPA's maximum drawdown of -57.37%. Use the drawdown chart below to compare losses from any high point for DFEN and PPA.

Drawdown Indicators

	DFEN	PPA	Difference
Max Drawdown Largest peak-to-trough decline	-91.36%	-57.37%	-33.99%
Max Drawdown (1Y) Largest decline over 1 year	-41.75%	-13.71%	-28.04%
Max Drawdown (3Y) Largest decline over 3 years	-43.13%	-15.24%	-27.89%
Max Drawdown (5Y) Largest decline over 5 years	-55.30%	-18.37%	-36.93%
Max Drawdown (10Y) Largest decline over 10 years	—	-43.92%	—
Current Drawdown Current decline from peak	-24.59%	-6.87%	-17.72%
Average Drawdown Average peak-to-trough decline	-45.14%	-9.18%	-35.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	18.23%	4.91%	+13.32%

Volatility

DFEN vs. PPA - Volatility Comparison

Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) has a higher volatility of 25.05% compared to Invesco Aerospace & Defense ETF (PPA) at 8.37%. This indicates that DFEN's price experiences larger fluctuations and is considered to be riskier than PPA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFEN	PPA	Difference
Volatility (1M) Calculated over the trailing 1-month period	25.05%	8.37%	+16.68%
Volatility (6M) Calculated over the trailing 6-month period	56.07%	17.10%	+38.97%
Volatility (1Y) Calculated over the trailing 1-year period	66.43%	20.18%	+46.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	60.78%	18.70%	+42.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	71.64%	20.75%	+50.89%

DFEN vs. PPA - Expense Ratio Comparison

DFEN has a 0.96% expense ratio, which is higher than PPA's 0.58% expense ratio.

Dividends

DFEN vs. PPA - Dividend Comparison

DFEN's dividend yield for the trailing twelve months is around 7.76%, more than PPA's 0.46% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	7.76%	8.89%	14.12%	1.13%	0.46%	1.89%	0.48%	0.50%	1.07%	1.50%	0.00%	0.00%
PPA Invesco Aerospace & Defense ETF	0.46%	0.42%	0.61%	0.67%	0.83%	0.59%	0.88%	0.95%	0.90%	0.67%	1.70%	1.41%

Frequently Asked Questions

Can I hold both DFEN and PPA in my portfolio?

With a correlation of 0.97, DFEN and PPA move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, DFEN or PPA?

DFEN has higher volatility (25.05%) compared to PPA (8.37%). In terms of maximum drawdown, DFEN dropped -91.36% vs PPA's -57.37%.

Which ETF is better, DFEN or PPA?

On 5-year performance, DFEN leads with 30.72% vs 18.72% for PPA. On fees, PPA is cheaper at 0.58% per year. On volatility, PPA has been the lower-risk option at 8.37%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFEN or PPA?

Over the 5-year period, DFEN has performed better with a 30.72% return vs 18.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFEN or PPA?

PPA is cheaper with a 0.58% expense ratio, compared with 0.96% for DFEN.

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

DFEN has the higher dividend yield at 7.76%, compared with 0.46% for PPA.

What is the main difference between DFEN and PPA?

DFEN is categorized as Leveraged Equities, while PPA is Aerospace & Defense. DFEN tracks Dow Jones U.S. Select Aerospace & Defense Index (300% Daily), while PPA tracks SPADE Defense Index. They also come from different issuers: Direxion and Invesco. Their fees differ too: 0.96% for DFEN and 0.58% for PPA.

Which has better risk-adjusted returns?

PPA currently has the higher Sharpe Ratio (1.40 vs 1.19), 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.