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DFEN vs. QQQ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

DFEN vs. QQQ

Last updated Jun 21, 2026

DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) and QQQ (Invesco QQQ 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 QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 5 years, DFEN returned 33.49%/yr vs 17.37%/yr for QQQ. At a 0.49 correlation, their price movements are largely independent. DFEN charges 0.96%/yr vs 0.18%/yr for QQQ.

Performance

DFEN vs. QQQ - 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 QQQ ETF (QQQ). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

The year-to-date returns for both stocks are quite close, with DFEN having a 20.97% return and QQQ slightly lower at 20.71%.

DFEN

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

QQQ

1D
2.51%
1M
3.22%
YTD
20.71%
6M
20.33%
1Y
41.26%
3Y*
27.01%
5Y*
17.37%
10Y*
22.17%
*Multi-year figures are annualized to reflect compound growth (CAGR)

DFEN vs. QQQ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
DFEN
Direxion Daily Aerospace & Defense Bull 3X Shares		20.97%156.62%27.07%24.70%6.99%12.72%-70.23%95.09%-32.86%83.64%
QQQ
Invesco QQQ ETF		20.71%20.77%25.58%54.86%-32.58%27.42%48.62%38.96%-0.13%14.13%

Correlation

The correlation between DFEN and QQQ is 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.43

Correlation (3Y)
Calculated over the trailing 3-year period

0.42

Correlation (5Y)
Calculated over the trailing 5-year period

0.50

Correlation (All Time)
Calculated using the full available price history since May 3, 2017

0.49

The correlation between DFEN and QQQ has been stable across timeframes, ranging from 0.42 to 0.50 - a consistent structural relationship.

DFEN vs. QQQ - Sectors Allocation Comparison

Sectors
DFEN
QQQ

Industrials

18.7%
2.6%

Technology

0.0%
58.7%

Basic Materials

-

1.0%

Communication Services

-

14.3%

Consumer Cyclical

-

11.4%

Consumer Defensive

-

6.4%

Energy

-

0.5%

Financial Services

-

0.2%

Healthcare

-

3.7%

Real Estate

-

0.1%

Utilities

-

1.2%

Industrials

DFEN
18.7%
QQQ
2.6%

Technology

DFEN
0.0%
QQQ
58.7%

Basic Materials

DFEN

-

QQQ
1.0%

Communication Services

DFEN

-

QQQ
14.3%

Consumer Cyclical

DFEN

-

QQQ
11.4%

Consumer Defensive

DFEN

-

QQQ
6.4%

Energy

DFEN

-

QQQ
0.5%

Financial Services

DFEN

-

QQQ
0.2%

Healthcare

DFEN

-

QQQ
3.7%

Real Estate

DFEN

-

QQQ
0.1%

Utilities

DFEN

-

QQQ
1.2%

Compare stocks, funds, or ETFs

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Direxion Daily Aerospace & Defense Bull 3X Shares

Invesco QQQ ETF

Often compared with DFEN:
DFEN vs. ITADFEN vs. XARDFEN vs. PPADFEN vs. SOXLDFEN vs. VOODFEN vs. SPXLDFEN vs. EUDF.DE
Often compared with QQQ:
QQQ vs. SPYQQQ vs. VOOQQQ vs. VGTQQQ vs. TQQQQQQ vs. SMHQQQ vs. QQQMQQQ vs. SPMO

Return for Risk

DFEN vs. QQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
DFEN
DFEN Risk / Return Rank: 4040
Overall Rank
DFEN Sharpe Ratio Rank: 4141
Sharpe Ratio Rank
DFEN Sortino Ratio Rank: 4242
Sortino Ratio Rank
DFEN Omega Ratio Rank: 3737
Omega Ratio Rank
DFEN Calmar Ratio Rank: 4646
Calmar Ratio Rank
DFEN Martin Ratio Rank: 3636
Martin Ratio Rank
QQQ
QQQ Risk / Return Rank: 7373
Overall Rank
QQQ Sharpe Ratio Rank: 7777
Sharpe Ratio Rank
QQQ Sortino Ratio Rank: 7171
Sortino Ratio Rank
QQQ Omega Ratio Rank: 7373
Omega Ratio Rank
QQQ Calmar Ratio Rank: 7171
Calmar Ratio Rank
QQQ Martin Ratio Rank: 7272
Martin Ratio Rank
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. QQQ - 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 QQQ ETF (QQQ). 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.

DFENQQQDifference
Sharpe ratioReturn per unit of total volatility
1.40
2.32

-0.92

Sortino ratioReturn per unit of downside risk
2.04
3.01

-0.97

Omega ratioGain probability vs. loss probability

1.24

1.41

-0.17

Calmar ratioReturn relative to maximum drawdown

2.21

3.42

-1.20

Martin ratioReturn relative to average drawdown

5.08

12.72

-7.64

DFEN vs. QQQ - Sharpe Ratio Comparison

The current DFEN Sharpe Ratio is 1.40, which is lower than the QQQ Sharpe Ratio of 2.32. The chart below compares the historical Sharpe Ratios of DFEN and QQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

DFEN vs. QQQ - Drawdown Comparison

The maximum DFEN drawdown since its inception was -91.36%, which is greater than QQQ's maximum drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for DFEN and QQQ.

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Drawdown Indicators

DFENQQQDifference

Max Drawdown

Largest peak-to-trough decline

-91.36%

-82.97%

-8.39%

Max Drawdown (1Y)

Largest decline over 1 year

-41.75%

-11.96%

-29.79%

Max Drawdown (3Y)

Largest decline over 3 years

-43.13%

-22.77%

-20.36%

Max Drawdown (5Y)

Largest decline over 5 years

-55.30%

-35.12%

-20.18%

Max Drawdown (10Y)

Largest decline over 10 years

—

-35.12%

—

Current Drawdown

Current decline from peak

-20.73%

-0.74%

-19.99%

Average Drawdown

Average peak-to-trough decline

-45.15%

-32.73%

-12.42%

Ulcer Index

Depth and duration of drawdowns from previous peaks

18.16%

3.21%

+14.95%

Volatility

DFEN vs. QQQ - Volatility Comparison

Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) has a higher volatility of 25.14% compared to Invesco QQQ ETF (QQQ) at 8.58%. This indicates that DFEN's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

DFENQQQDifference

Volatility (1M)

Calculated over the trailing 1-month period

25.14%

8.58%

+16.56%

Volatility (6M)

Calculated over the trailing 6-month period

56.03%

14.34%

+41.69%

Volatility (1Y)

Calculated over the trailing 1-year period

66.17%

17.64%

+48.53%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

60.80%

22.63%

+38.17%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

71.64%

22.42%

+49.22%

DFEN vs. QQQ - Expense Ratio Comparison

DFEN has a 0.96% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

DFEN vs. QQQ - Dividend Comparison

DFEN's dividend yield for the trailing twelve months is around 7.38%, more than QQQ's 0.38% yield.

PositionTTM20252024202320222021202020192018201720162015
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%0.00%0.00%
QQQ
Invesco QQQ ETF		0.38%0.45%0.56%0.62%0.80%0.43%0.55%0.74%0.91%0.84%1.06%0.99%

Frequently Asked Questions

DFEN and QQQ have a correlation of 0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

DFEN has higher volatility (25.14%) compared to QQQ (8.58%). In terms of maximum drawdown, DFEN dropped -91.36% vs QQQ's -82.97%.

On 5-year performance, DFEN leads with 33.49% vs 17.37% for QQQ. On fees, QQQ is cheaper at 0.18% per year. On volatility, QQQ has been the lower-risk option at 8.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 5-year period, DFEN has performed better with a 33.49% return vs 17.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

QQQ is cheaper with a 0.18% expense ratio, compared with 0.96% for DFEN.

DFEN has the higher dividend yield at 7.38%, compared with 0.38% for QQQ.

DFEN is categorized as Leveraged Equities, while QQQ is Nasdaq-100. DFEN tracks Dow Jones U.S. Select Aerospace & Defense Index (300% Daily), while QQQ tracks NASDAQ-100 Index. They also come from different issuers: Direxion and Invesco. Their fees differ too: 0.96% for DFEN and 0.18% for QQQ.

QQQ currently has the higher Sharpe Ratio (2.32 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.

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