DRN vs. FREL

Last updated Jun 3, 2026

DRN (Direxion Daily Real Estate Bull 3x Shares) and FREL (Fidelity MSCI Real Estate Index ETF) are both REIT funds - DRN tracks the MSCI US REIT Index (300%) while FREL tracks the MSCI USA IMI Real Estate Index. Both are passively managed. Over the past 10 years, DRN returned -5.10%/yr vs 5.69%/yr for FREL. With a 0.98 correlation, they move nearly in lockstep. DRN charges 0.99%/yr vs 0.08%/yr for FREL.

Performance

DRN vs. FREL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Real Estate Bull 3x Shares (DRN) and Fidelity MSCI Real Estate Index ETF (FREL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DRN achieves a 19.36% return, which is significantly higher than FREL's 7.74% return. Over the past 10 years, DRN has underperformed FREL with an annualized return of -5.10%, while FREL has yielded a comparatively higher 5.69% annualized return.

DRN

• 1D: 1.30%
• 1M: -6.56%
• YTD: 19.36%
• 6M: 16.51%
• 1Y: 6.60%
• 3Y*: 7.32%
• 5Y*: -11.56%
• 10Y*: -5.10%

FREL

• 1D: 0.42%
• 1M: -1.51%
• YTD: 7.74%
• 6M: 6.90%
• 1Y: 9.68%
• 3Y*: 9.10%
• 5Y*: 2.11%
• 10Y*: 5.69%

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

DRN vs. FREL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DRN Direxion Daily Real Estate Bull 3x Shares	19.36%	-11.24%	-5.29%	12.03%	-67.26%	152.94%	-55.37%	81.86%	-25.11%	7.50%
FREL Fidelity MSCI Real Estate Index ETF	7.74%	3.09%	5.05%	11.74%	-26.21%	40.46%	-4.99%	28.78%	-4.52%	8.86%

Correlation

The correlation between DRN and FREL is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since Feb 6, 2015	0.98

The correlation between DRN and FREL has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.

DRN vs. FREL - Sectors Allocation Comparison

Sectors	DRN	FREL
Real Estate	19.6%	97.6%
Basic Materials	0.4%	1.2%
Communication Services	-	0.4%
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	0.1%
Financial Services	-	0.0%
Healthcare	-	-
Industrials	-	-
Technology	-	0.3%
Utilities	-	-

Return for Risk

DRN vs. FREL — Risk / Return Rank

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

DRN

DRN Risk / Return Rank: 12
DRN Sharpe Ratio Rank: 11
DRN Sortino Ratio Rank: 12
DRN Omega Ratio Rank: 12
DRN Calmar Ratio Rank: 12
DRN Martin Ratio Rank: 12

FREL

FREL Risk / Return Rank: 23
FREL Sharpe Ratio Rank: 22
FREL Sortino Ratio Rank: 21
FREL Omega Ratio Rank: 21
FREL Calmar Ratio Rank: 24
FREL Martin Ratio Rank: 26

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.

DRN vs. FREL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Real Estate Bull 3x Shares (DRN) and Fidelity MSCI Real Estate Index ETF (FREL). 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.

	DRN	FREL	Difference
Sharpe ratio Return per unit of total volatility	0.17	0.74	-0.57
Sortino ratio Return per unit of downside risk	0.50	1.08	-0.59
Omega ratio Gain probability vs. loss probability	1.06	1.14	-0.07
Calmar ratio Return relative to maximum drawdown	0.29	1.16	-0.87
Martin ratio Return relative to average drawdown	0.65	3.68	-3.03
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DRN vs. FREL - Sharpe Ratio Comparison

The current DRN Sharpe Ratio is 0.17, which is lower than the FREL Sharpe Ratio of 0.74. The chart below compares the historical Sharpe Ratios of DRN and FREL, 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

	DRN	FREL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.17	0.74	-0.57
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.20	0.11	-0.32
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.08	0.28	-0.36
Sharpe Ratio (All Time) Calculated using the full available price history	0.21	0.26	-0.05

Drawdowns

DRN vs. FREL - Drawdown Comparison

The maximum DRN drawdown since its inception was -86.32%, which is greater than FREL's maximum drawdown of -42.61%. Use the drawdown chart below to compare losses from any high point for DRN and FREL.

Drawdown Indicators

	DRN	FREL	Difference
Max Drawdown Largest peak-to-trough decline	-86.32%	-42.61%	-43.71%
Max Drawdown (1Y) Largest decline over 1 year	-24.28%	-8.45%	-15.83%
Max Drawdown (3Y) Largest decline over 3 years	-48.26%	-17.54%	-30.72%
Max Drawdown (5Y) Largest decline over 5 years	-80.58%	-34.40%	-46.18%
Max Drawdown (10Y) Largest decline over 10 years	-86.32%	-42.61%	-43.71%
Current Drawdown Current decline from peak	-65.97%	-3.80%	-62.17%
Average Drawdown Average peak-to-trough decline	-35.06%	-9.95%	-25.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.89%	2.67%	+8.22%

Volatility

DRN vs. FREL - Volatility Comparison

Direxion Daily Real Estate Bull 3x Shares (DRN) has a higher volatility of 11.21% compared to Fidelity MSCI Real Estate Index ETF (FREL) at 3.80%. This indicates that DRN's price experiences larger fluctuations and is considered to be riskier than FREL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DRN	FREL	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.21%	3.80%	+7.41%
Volatility (6M) Calculated over the trailing 6-month period	29.18%	9.35%	+19.83%
Volatility (1Y) Calculated over the trailing 1-year period	40.04%	13.17%	+26.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	56.66%	18.85%	+37.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	60.62%	20.68%	+39.94%

DRN vs. FREL - Expense Ratio Comparison

DRN has a 0.99% expense ratio, which is higher than FREL's 0.08% expense ratio.

Dividends

DRN vs. FREL - Dividend Comparison

DRN's dividend yield for the trailing twelve months is around 2.23%, less than FREL's 3.34% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DRN Direxion Daily Real Estate Bull 3x Shares	2.23%	2.81%	2.24%	2.84%	2.70%	4.21%	1.90%	2.59%	3.11%	0.91%	0.00%	0.00%
FREL Fidelity MSCI Real Estate Index ETF	3.34%	3.59%	3.48%	3.73%	3.57%	2.34%	3.77%	3.32%	5.54%	3.27%	4.01%	3.80%

Frequently Asked Questions

Can I hold both DRN and FREL in my portfolio?

With a correlation of 0.98, DRN and FREL move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, DRN or FREL?

DRN has higher volatility (11.21%) compared to FREL (3.80%). In terms of maximum drawdown, DRN dropped -86.32% vs FREL's -42.61%.

Which ETF is better, DRN or FREL?

On 10-year performance, FREL leads with 5.69% vs -5.10% for DRN. On fees, FREL is cheaper at 0.08% per year. On volatility, FREL has been the lower-risk option at 3.80%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DRN or FREL?

Over the 10-year period, FREL has performed better with a 5.69% return vs -5.10%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DRN or FREL?

FREL is cheaper with a 0.08% expense ratio, compared with 0.99% for DRN.

Which ETF pays a higher dividend yield, DRN or FREL?

FREL has the higher dividend yield at 3.34%, compared with 2.23% for DRN.

What is the main difference between DRN and FREL?

DRN tracks MSCI US REIT Index (300%), while FREL tracks MSCI USA IMI Real Estate Index. They also come from different issuers: Direxion and Fidelity. Their fees differ too: 0.99% for DRN and 0.08% for FREL.

Which has better risk-adjusted returns?

FREL currently has the higher Sharpe Ratio (0.74 vs 0.17), 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.