DFEN vs. VOO

Last updated Aug 4, 2026

DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) and VOO (Vanguard S&P 500 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 VOO is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 5 years, DFEN returned 36.85%/yr vs 13.12%/yr for VOO. Their 0.64 correlation means they have sometimes moved together and sometimes differently. DFEN charges 0.96%/yr vs 0.03%/yr for VOO.

Performance

DFEN vs. VOO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) and Vanguard S&P 500 ETF (VOO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFEN achieves a 27.74% return, which is significantly higher than VOO's 11.72% return.

DFEN

• 1D: 8.14%
• 1M: -4.95%
• 6M: 4.58%
• YTD: 27.74%
• 1Y: 57.49%
• 3Y*: 72.81%
• 5Y*: 36.85%
• 10Y*: —
• ALL TIME*: 17.61%

VOO

• 1D: 1.42%
• 1M: 1.69%
• 6M: 9.53%
• YTD: 11.72%
• 1Y: 23.30%
• 3Y*: 20.85%
• 5Y*: 13.12%
• 10Y*: 15.17%
• ALL TIME*: 14.88%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	$13.86M	$12.55M	$15.20M
VOO Vanguard S&P 500 ETF	$3.97B	$3.80B	$5.49B

DFEN vs. VOO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	27.74%	156.62%	27.07%	24.70%	6.99%	12.72%	-70.23%	95.09%	-32.86%	83.64%
VOO Vanguard S&P 500 ETF	11.72%	17.82%	24.98%	26.32%	-18.17%	28.79%	18.32%	31.37%	-4.50%	13.53%

Correlation

The correlation between DFEN and VOO is 0.53, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.53
Correlation (3Y) Balances recent behavior with more history.	0.55
Correlation (5Y) Shows whether the relationship held over a longer period.	0.63
Correlation (All Time) Calculated using the full available price history since May 3, 2017	0.64

The correlation between DFEN and VOO shifts across timeframes, from 0.53 (1 year) to 0.64 (all time), reflecting how their relationship changes across market environments.

DFEN vs. VOO - Sectors Allocation Comparison

Sectors	DFEN	VOO
Industrials	18.5%	8.5%
Basic Materials	0.4%	1.7%
Technology	0.0%	38.6%
Communication Services	-	9.9%
Consumer Cyclical	-	9.5%
Consumer Defensive	-	4.5%
Energy	-	3.0%
Financial Services	-	11.4%
Healthcare	-	8.9%
Real Estate	-	1.8%
Utilities	-	2.2%

Return for Risk

DFEN vs. VOO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

DFEN

DFEN Risk / Return Rank: 36
DFEN Sharpe Ratio Rank: 34
DFEN Sortino Ratio Rank: 39
DFEN Omega Ratio Rank: 37
DFEN Calmar Ratio Rank: 39
DFEN Martin Ratio Rank: 31

VOO

VOO Risk / Return Rank: 78
VOO Sharpe Ratio Rank: 79
VOO Sortino Ratio Rank: 77
VOO Omega Ratio Rank: 78
VOO Calmar Ratio Rank: 74
VOO Martin Ratio Rank: 83

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

DFEN vs. VOO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) and Vanguard S&P 500 ETF (VOO). 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	VOO	Difference
Sharpe ratio: Return per unit of total volatility	0.85	1.83	-0.99
Sortino ratio: Return per unit of downside risk	1.52	2.53	-1.00
Omega ratio: Gain probability vs. loss probability	1.18	1.33	-0.15
Calmar ratio: Return relative to maximum drawdown	1.38	2.63	-1.25
Martin ratio: Return relative to average drawdown	2.91	11.23	-8.32

DFEN vs. VOO - Sharpe Ratio Comparison

The current DFEN Sharpe Ratio is 0.85, which is lower than the VOO Sharpe Ratio of 1.83. The chart below compares the historical Sharpe Ratios of DFEN and VOO, 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. VOO - Drawdown Comparison

The maximum DFEN drawdown since its inception was -91.36%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for DFEN and VOO.

Drawdown Indicators

	DFEN	VOO	Difference
Max Drawdown Largest peak-to-trough decline	-91.36%	-33.99%	-57.37%
Max Drawdown (1Y) Largest decline over 1 year	-41.75%	-8.90%	-32.85%
Max Drawdown (3Y) Largest decline over 3 years	-43.13%	-18.69%	-24.44%
Max Drawdown (5Y) Largest decline over 5 years	-51.96%	-24.52%	-27.44%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.99%	—
Current Drawdown Current decline from peak	-16.29%	0.00%	-16.29%
Average Drawdown Average peak-to-trough decline	-44.86%	-3.67%	-41.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	19.80%	2.08%	+17.72%

Volatility

DFEN vs. VOO - Volatility Comparison

Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) has a higher volatility of 22.77% compared to Vanguard S&P 500 ETF (VOO) at 3.81%. This indicates that DFEN's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFEN	VOO	Difference
Volatility (1M) Calculated over the trailing 1-month period	22.77%	3.81%	+18.96%
Volatility (6M) Calculated over the trailing 6-month period	55.82%	10.18%	+45.64%
Volatility (1Y) Calculated over the trailing 1-year period	68.43%	12.80%	+55.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	60.96%	16.95%	+44.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	71.61%	18.02%	+53.59%

DFEN vs. VOO - Expense Ratio Comparison

DFEN has a 0.96% expense ratio, which is higher than VOO's 0.03% expense ratio.

Dividends

DFEN vs. VOO - Dividend Comparison

DFEN's dividend yield for the trailing twelve months is around 6.94%, more than VOO's 1.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	6.94%	8.89%	14.12%	1.13%	0.46%	1.89%	0.48%	0.50%	1.07%	1.50%	0.00%	0.00%
VOO Vanguard S&P 500 ETF	1.05%	1.13%	1.24%	1.46%	1.69%	1.25%	1.54%	1.88%	2.06%	1.78%	2.02%	2.10%

Frequently Asked Questions

Can I hold both DFEN and VOO in my portfolio?

DFEN and VOO have a correlation of 0.53, 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 VOO?

DFEN has higher volatility (22.77%) compared to VOO (3.81%). In terms of maximum drawdown, DFEN dropped -91.36% vs VOO's -33.99%.

Which ETF is better, DFEN or VOO?

On 5-year performance, DFEN leads with 36.85% vs 13.12% for VOO. On fees, VOO is cheaper at 0.03% per year. On volatility, VOO has been the lower-risk option at 3.81%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFEN or VOO?

Over the 5-year period, DFEN has performed better with a 36.85% return vs 13.12%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFEN or VOO?

VOO is cheaper with a 0.03% expense ratio, compared with 0.96% for DFEN.

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

DFEN has the higher dividend yield at 6.94%, compared with 1.05% for VOO.

What is the main difference between DFEN and VOO?

DFEN is categorized as Leveraged Equities, while VOO is S&P 500. DFEN tracks Dow Jones U.S. Select Aerospace & Defense Index (300% Daily), while VOO tracks S&P 500 Index. They also come from different issuers: Direxion and Vanguard. Their fees differ too: 0.96% for DFEN and 0.03% for VOO.

Which has better risk-adjusted returns?

VOO currently has the higher Sharpe Ratio (1.83 vs 0.85), 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.