DFEN vs. SHLD

Last updated Jun 4, 2026

DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) and SHLD (Global X Defense Tech ETF) are both exchange-traded funds - DFEN is a Leveraged Equities fund tracking the Dow Jones U.S. Select Aerospace & Defense Index (300%), while SHLD is a Aerospace & Defense fund tracking the Global X Defense Tech Index. Both are passively managed. Over the past year, DFEN returned 59.57% vs 9.71% for SHLD. A 0.71 correlation means they provide meaningful diversification when combined. DFEN charges 0.99%/yr vs 0.50%/yr for SHLD.

Performance

DFEN vs. SHLD - Performance Comparison

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

Returns By Period

In the year-to-date period, DFEN achieves a 2.17% return, which is significantly higher than SHLD's -2.28% return.

DFEN

• 1D: -4.54%
• 1M: 12.97%
• YTD: 2.17%
• 6M: 21.41%
• 1Y: 59.57%
• 3Y*: 63.19%
• 5Y*: 26.54%
• 10Y*: —

SHLD

• 1D: -2.39%
• 1M: -7.01%
• YTD: -2.28%
• 6M: 1.71%
• 1Y: 9.71%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

DFEN vs. SHLD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	2.17%	156.62%	27.07%	48.37%
SHLD Global X Defense Tech ETF	-2.28%	74.16%	35.03%	12.89%

Correlation

The correlation between DFEN and SHLD is 0.73, 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	0.73
Correlation (All Time) Calculated using the full available price history since Sep 14, 2023	0.71

The correlation between DFEN and SHLD has been stable across timeframes, ranging from 0.71 to 0.73 - a consistent structural relationship.

DFEN vs. SHLD - Sectors Allocation Comparison

Sectors	DFEN	SHLD
Industrials	19.7%	88.2%
Technology	0.0%	11.8%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

DFEN vs. SHLD — Risk / Return Rank

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

DFEN

DFEN Risk / Return Rank: 27
DFEN Sharpe Ratio Rank: 26
DFEN Sortino Ratio Rank: 29
DFEN Omega Ratio Rank: 27
DFEN Calmar Ratio Rank: 29
DFEN Martin Ratio Rank: 25

SHLD

SHLD Risk / Return Rank: 15
SHLD Sharpe Ratio Rank: 14
SHLD Sortino Ratio Rank: 15
SHLD Omega Ratio Rank: 14
SHLD Calmar Ratio Rank: 14
SHLD Martin Ratio Rank: 15

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. SHLD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) and Global X Defense Tech ETF (SHLD). 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.

	DFEN	SHLD	Difference
Sharpe ratio: Return per unit of total volatility	0.95	0.41	+0.54
Sortino ratio: Return per unit of downside risk	1.59	0.74	+0.85
Omega ratio: Gain probability vs. loss probability	1.19	1.08	+0.10
Calmar ratio: Return relative to maximum drawdown	1.43	0.49	+0.95
Martin ratio: Return relative to average drawdown	3.44	1.30	+2.15
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DFEN vs. SHLD - Sharpe Ratio Comparison

The current DFEN Sharpe Ratio is 0.95, which is higher than the SHLD Sharpe Ratio of 0.41. The chart below compares the historical Sharpe Ratios of DFEN and SHLD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	DFEN	SHLD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.95	0.41	+0.54
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.44	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.21	2.00	-1.79

Drawdowns

DFEN vs. SHLD - Drawdown Comparison

The maximum DFEN drawdown since its inception was -91.36%, which is greater than SHLD's maximum drawdown of -20.10%. Use the drawdown chart below to compare losses from any high point for DFEN and SHLD.

Drawdown Indicators

	DFEN	SHLD	Difference
Max Drawdown Largest peak-to-trough decline	-91.36%	-20.10%	-71.26%
Max Drawdown (1Y) Largest decline over 1 year	-41.75%	-20.10%	-21.65%
Max Drawdown (3Y) Largest decline over 3 years	-43.13%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-56.23%	—	—
Current Drawdown Current decline from peak	-33.04%	-18.85%	-14.19%
Average Drawdown Average peak-to-trough decline	-45.27%	-3.19%	-42.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	17.36%	7.51%	+9.85%

Volatility

DFEN vs. SHLD - Volatility Comparison

Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) has a higher volatility of 22.35% compared to Global X Defense Tech ETF (SHLD) at 7.81%. This indicates that DFEN's price experiences larger fluctuations and is considered to be riskier than SHLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFEN	SHLD	Difference
Volatility (1M) Calculated over the trailing 1-month period	22.35%	7.81%	+14.54%
Volatility (6M) Calculated over the trailing 6-month period	53.06%	19.35%	+33.71%
Volatility (1Y) Calculated over the trailing 1-year period	63.21%	24.05%	+39.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	60.16%	21.13%	+39.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	71.48%	21.13%	+50.35%

DFEN vs. SHLD - Expense Ratio Comparison

DFEN has a 0.99% expense ratio, which is higher than SHLD's 0.50% expense ratio.

Dividends

DFEN vs. SHLD - Dividend Comparison

DFEN's dividend yield for the trailing twelve months is around 8.74%, more than SHLD's 0.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	8.74%	8.89%	14.12%	1.13%	0.46%	1.89%	0.48%	0.50%	1.07%	1.50%
SHLD Global X Defense Tech ETF	0.56%	0.55%	0.53%	0.26%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DFEN and SHLD in my portfolio?

DFEN and SHLD have a correlation of 0.73, 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 SHLD?

DFEN has higher volatility (22.35%) compared to SHLD (7.81%). In terms of maximum drawdown, DFEN dropped -91.36% vs SHLD's -20.10%.

Which ETF is better, DFEN or SHLD?

On 1-year performance, DFEN leads with 59.57% vs 9.71% for SHLD. On fees, SHLD is cheaper at 0.50% per year. On volatility, SHLD has been the lower-risk option at 7.81%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFEN or SHLD?

Over the 1-year period, DFEN has performed better with a 59.57% return vs 9.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFEN or SHLD?

SHLD is cheaper with a 0.50% expense ratio, compared with 0.99% for DFEN.

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

DFEN has the higher dividend yield at 8.74%, compared with 0.56% for SHLD.

What is the main difference between DFEN and SHLD?

DFEN is categorized as Leveraged Equities, while SHLD is Aerospace & Defense. DFEN tracks Dow Jones U.S. Select Aerospace & Defense Index (300%), while SHLD tracks Global X Defense Tech Index. They also come from different issuers: Direxion and Global X. Their fees differ too: 0.99% for DFEN and 0.50% for SHLD.

Which has better risk-adjusted returns?

DFEN currently has the higher Sharpe Ratio (0.95 vs 0.41), 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.