DFEN vs. TMF

Last updated Jun 4, 2026

DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) and TMF (Direxion Daily 20-Year Treasury Bull 3X) are both exchange-traded funds - DFEN is a Leveraged Equities fund tracking the Dow Jones U.S. Select Aerospace & Defense Index (300%), while TMF is a Leveraged Bonds fund tracking the NYSE 20 Year Plus Treasury Bond Index (300%). Both are passively managed. Over the past 5 years, DFEN returned 26.54%/yr vs -30.52%/yr for TMF. At a correlation of -0.12, they often move in opposite directions. DFEN charges 0.99%/yr vs 1.09%/yr for TMF.

Performance

DFEN vs. TMF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) and Direxion Daily 20-Year Treasury Bull 3X (TMF). 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 TMF's -6.13% return.

DFEN

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

TMF

• 1D: -1.14%
• 1M: 1.22%
• YTD: -6.13%
• 6M: -11.63%
• 1Y: 0.90%
• 3Y*: -20.78%
• 5Y*: -30.52%
• 10Y*: -16.56%

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

DFEN vs. TMF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	2.17%	156.62%	27.07%	24.70%	6.99%	12.72%	-70.23%	95.09%	-32.86%	83.64%
TMF Direxion Daily 20-Year Treasury Bull 3X	-6.13%	-2.94%	-35.95%	-13.01%	-72.60%	-19.80%	39.02%	34.75%	-11.01%	14.50%

Correlation

The correlation between DFEN and TMF is 0.11, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.11
Correlation (3Y) Calculated over the trailing 3-year period	0.10
Correlation (5Y) Calculated over the trailing 5-year period	-0.00
Correlation (All Time) Calculated using the full available price history since May 4, 2017	-0.12

The correlation between DFEN and TMF shifts across timeframes, from -0.12 (all time) to 0.11 (1 year), reflecting how their relationship changes across market environments.

DFEN vs. TMF - Sectors Allocation Comparison

Sectors	DFEN	TMF
Industrials	19.7%	-
Technology	0.0%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	18.7%
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

DFEN vs. TMF — 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

TMF

TMF Risk / Return Rank: 9
TMF Sharpe Ratio Rank: 9
TMF Sortino Ratio Rank: 9
TMF Omega Ratio Rank: 9
TMF Calmar Ratio Rank: 9
TMF Martin Ratio Rank: 9

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. TMF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) and Direxion Daily 20-Year Treasury Bull 3X (TMF). 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	TMF	Difference
Sharpe ratio: Return per unit of total volatility	0.95	0.03	+0.92
Sortino ratio: Return per unit of downside risk	1.59	0.25	+1.34
Omega ratio: Gain probability vs. loss probability	1.19	1.03	+0.16
Calmar ratio: Return relative to maximum drawdown	1.43	0.03	+1.40
Martin ratio: Return relative to average drawdown	3.44	0.08	+3.36
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. TMF - Sharpe Ratio Comparison

The current DFEN Sharpe Ratio is 0.95, which is higher than the TMF Sharpe Ratio of 0.03. The chart below compares the historical Sharpe Ratios of DFEN and TMF, 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	TMF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.95	0.03	+0.92
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.44	-0.66	+1.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	-0.38	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.21	-0.14	+0.35

Drawdowns

DFEN vs. TMF - Drawdown Comparison

The maximum DFEN drawdown since its inception was -91.36%, roughly equal to the maximum TMF drawdown of -92.89%. Use the drawdown chart below to compare losses from any high point for DFEN and TMF.

Drawdown Indicators

	DFEN	TMF	Difference
Max Drawdown Largest peak-to-trough decline	-91.36%	-92.89%	+1.53%
Max Drawdown (1Y) Largest decline over 1 year	-41.75%	-26.51%	-15.24%
Max Drawdown (3Y) Largest decline over 3 years	-43.13%	-56.31%	+13.18%
Max Drawdown (5Y) Largest decline over 5 years	-56.23%	-88.81%	+32.58%
Max Drawdown (10Y) Largest decline over 10 years	—	-92.89%	—
Current Drawdown Current decline from peak	-33.04%	-92.23%	+59.19%
Average Drawdown Average peak-to-trough decline	-45.27%	-43.63%	-1.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	17.36%	11.49%	+5.87%

Volatility

DFEN vs. TMF - Volatility Comparison

Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) has a higher volatility of 22.35% compared to Direxion Daily 20-Year Treasury Bull 3X (TMF) at 8.09%. This indicates that DFEN's price experiences larger fluctuations and is considered to be riskier than TMF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFEN	TMF	Difference
Volatility (1M) Calculated over the trailing 1-month period	22.35%	8.09%	+14.26%
Volatility (6M) Calculated over the trailing 6-month period	53.06%	19.01%	+34.05%
Volatility (1Y) Calculated over the trailing 1-year period	63.21%	28.76%	+34.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	60.16%	46.75%	+13.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	71.48%	43.92%	+27.56%

DFEN vs. TMF - Expense Ratio Comparison

DFEN has a 0.99% expense ratio, which is lower than TMF's 1.09% expense ratio.

Dividends

DFEN vs. TMF - Dividend Comparison

DFEN's dividend yield for the trailing twelve months is around 8.74%, more than TMF's 4.15% 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%
TMF Direxion Daily 20-Year Treasury Bull 3X	4.15%	4.06%	4.29%	2.82%	1.62%	0.13%	2.23%	0.94%	1.49%	0.41%

Frequently Asked Questions

Can I hold both DFEN and TMF in my portfolio?

DFEN and TMF have a correlation of 0.11, 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 TMF?

DFEN has higher volatility (22.35%) compared to TMF (8.09%). In terms of maximum drawdown, DFEN dropped -91.36% vs TMF's -92.89%.

Which ETF is better, DFEN or TMF?

On 5-year performance, DFEN leads with 26.54% vs -30.52% for TMF. On fees, DFEN is cheaper at 0.99% per year. On volatility, TMF has been the lower-risk option at 8.09%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFEN or TMF?

Over the 5-year period, DFEN has performed better with a 26.54% return vs -30.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFEN or TMF?

DFEN is cheaper with a 0.99% expense ratio, compared with 1.09% for TMF.

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

DFEN has the higher dividend yield at 8.74%, compared with 4.15% for TMF.

What is the main difference between DFEN and TMF?

DFEN is categorized as Leveraged Equities, while TMF is Leveraged Bonds. DFEN tracks Dow Jones U.S. Select Aerospace & Defense Index (300%), while TMF tracks NYSE 20 Year Plus Treasury Bond Index (300%). Their fees differ too: 0.99% for DFEN and 1.09% for TMF.

Which has better risk-adjusted returns?

DFEN currently has the higher Sharpe Ratio (0.95 vs 0.03), 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.