DFEN vs. TQQQ

Last updated Jun 13, 2026

DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) and TQQQ (ProShares UltraPro QQQ) are both Leveraged Equities funds - DFEN tracks the Dow Jones U.S. Select Aerospace & Defense Index (300%) while TQQQ tracks the NASDAQ-100 Index (300%). Both are passively managed. Over the past 5 years, DFEN returned 29.22%/yr vs 24.34%/yr for TQQQ. At a 0.49 correlation, their price movements are largely independent. DFEN charges 0.99%/yr vs 0.95%/yr for TQQQ.

Performance

DFEN vs. TQQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) and ProShares UltraPro QQQ (TQQQ). 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 lower than TQQQ's 47.28% return.

DFEN

• 1D: -2.71%
• 1M: 7.74%
• YTD: 13.12%
• 6M: 20.44%
• 1Y: 76.99%
• 3Y*: 64.38%
• 5Y*: 29.22%
• 10Y*: —

TQQQ

• 1D: 1.99%
• 1M: 0.36%
• YTD: 47.28%
• 6M: 47.23%
• 1Y: 106.26%
• 3Y*: 59.79%
• 5Y*: 24.34%
• 10Y*: 44.55%

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

DFEN vs. TQQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	13.12%	156.62%	27.07%	24.70%	6.99%	12.72%	-70.23%	95.09%	-32.86%	83.64%
TQQQ ProShares UltraPro QQQ	47.28%	34.35%	58.27%	198.04%	-79.09%	82.98%	110.05%	133.84%	-19.79%	41.10%

Correlation

The correlation between DFEN and TQQQ is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.44
Correlation (3Y) Calculated over the trailing 3-year period	0.43
Correlation (5Y) Calculated over the trailing 5-year period	0.51
Correlation (All Time) Calculated using the full available price history since May 3, 2017	0.49

The correlation between DFEN and TQQQ has been stable across timeframes, ranging from 0.43 to 0.51 - a consistent structural relationship.

DFEN vs. TQQQ - Sectors Allocation Comparison

Sectors	DFEN	TQQQ
Industrials	19.7%	2.8%
Technology	0.0%	53.8%
Basic Materials	-	1.1%
Communication Services	-	15.8%
Consumer Cyclical	-	12.3%
Consumer Defensive	-	7.7%
Energy	-	0.6%
Financial Services	-	0.2%
Healthcare	-	4.2%
Real Estate	-	0.1%
Utilities	-	1.4%

Return for Risk

DFEN vs. TQQQ — 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

TQQQ

TQQQ Risk / Return Rank: 64
TQQQ Sharpe Ratio Rank: 75
TQQQ Sortino Ratio Rank: 59
TQQQ Omega Ratio Rank: 62
TQQQ Calmar Ratio Rank: 66
TQQQ Martin Ratio Rank: 59

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. TQQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) and ProShares UltraPro QQQ (TQQQ). 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	TQQQ	Difference
Sharpe ratio: Return per unit of total volatility	1.18	2.09	-0.91
Sortino ratio: Return per unit of downside risk	1.85	2.42	-0.56
Omega ratio: Gain probability vs. loss probability	1.22	1.32	-0.11
Calmar ratio: Return relative to maximum drawdown	1.85	2.89	-1.04
Martin ratio: Return relative to average drawdown	4.29	9.26	-4.96

DFEN vs. TQQQ - Sharpe Ratio Comparison

The current DFEN Sharpe Ratio is 1.18, which is lower than the TQQQ Sharpe Ratio of 2.09. The chart below compares the historical Sharpe Ratios of DFEN and TQQQ, 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. TQQQ - Drawdown Comparison

The maximum DFEN drawdown since its inception was -91.36%, which is greater than TQQQ's maximum drawdown of -81.66%. Use the drawdown chart below to compare losses from any high point for DFEN and TQQQ.

Drawdown Indicators

	DFEN	TQQQ	Difference
Max Drawdown Largest peak-to-trough decline	-91.36%	-81.66%	-9.70%
Max Drawdown (1Y) Largest decline over 1 year	-41.75%	-36.97%	-4.78%
Max Drawdown (3Y) Largest decline over 3 years	-43.13%	-58.04%	+14.91%
Max Drawdown (5Y) Largest decline over 5 years	-55.30%	-81.66%	+26.36%
Max Drawdown (10Y) Largest decline over 10 years	—	-81.66%	—
Current Drawdown Current decline from peak	-25.87%	-11.12%	-14.75%
Average Drawdown Average peak-to-trough decline	-45.20%	-18.51%	-26.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	17.99%	11.52%	+6.47%

Volatility

DFEN vs. TQQQ - Volatility Comparison

Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) has a higher volatility of 27.31% compared to ProShares UltraPro QQQ (TQQQ) at 22.79%. This indicates that DFEN's price experiences larger fluctuations and is considered to be riskier than TQQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFEN	TQQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	27.31%	22.79%	+4.52%
Volatility (6M) Calculated over the trailing 6-month period	55.81%	41.26%	+14.55%
Volatility (1Y) Calculated over the trailing 1-year period	65.81%	51.24%	+14.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	60.74%	67.02%	-6.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	71.66%	66.22%	+5.44%

DFEN vs. TQQQ - Expense Ratio Comparison

DFEN has a 0.99% expense ratio, which is higher than TQQQ's 0.95% expense ratio.

Dividends

DFEN vs. TQQQ - Dividend Comparison

DFEN's dividend yield for the trailing twelve months is around 7.89%, more than TQQQ's 0.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%	0.00%	0.00%
TQQQ ProShares UltraPro QQQ	0.41%	0.65%	1.27%	1.26%	0.57%	0.00%	0.00%	0.06%	0.11%	0.00%	0.00%	0.01%

Frequently Asked Questions

Can I hold both DFEN and TQQQ in my portfolio?

DFEN and TQQQ have a correlation of 0.44, 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 TQQQ?

DFEN has higher volatility (27.31%) compared to TQQQ (22.79%). In terms of maximum drawdown, DFEN dropped -91.36% vs TQQQ's -81.66%.

Which ETF is better, DFEN or TQQQ?

On 5-year performance, DFEN leads with 29.22% vs 24.34% for TQQQ. On fees, TQQQ is cheaper at 0.95% per year. On volatility, TQQQ has been the lower-risk option at 22.79%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFEN or TQQQ?

Over the 5-year period, DFEN has performed better with a 29.22% return vs 24.34%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFEN or TQQQ?

TQQQ is cheaper with a 0.95% expense ratio, compared with 0.99% for DFEN.

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

DFEN has the higher dividend yield at 7.89%, compared with 0.41% for TQQQ.

What is the main difference between DFEN and TQQQ?

DFEN tracks Dow Jones U.S. Select Aerospace & Defense Index (300%), while TQQQ tracks NASDAQ-100 Index (300%). They also come from different issuers: Direxion and ProShares. Their fees differ too: 0.99% for DFEN and 0.95% for TQQQ.

Which has better risk-adjusted returns?

TQQQ currently has the higher Sharpe Ratio (2.09 vs 1.18), 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.