DRN vs. FRI

Last updated Jun 3, 2026

DRN (Direxion Daily Real Estate Bull 3x Shares) and FRI (First Trust S&P REIT Index Fund) are both REIT funds - DRN tracks the MSCI US REIT Index (300%) while FRI tracks the S&P United States REIT. Both are passively managed. Over the past 10 years, DRN returned -5.10%/yr vs 5.60%/yr for FRI. With a 0.98 correlation, they move nearly in lockstep. DRN charges 0.99%/yr vs 0.50%/yr for FRI.

Performance

DRN vs. FRI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Real Estate Bull 3x Shares (DRN) and First Trust S&P REIT Index Fund (FRI). 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 FRI's 11.66% return. Over the past 10 years, DRN has underperformed FRI with an annualized return of -5.10%, while FRI has yielded a comparatively higher 5.60% 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%

FRI

• 1D: 0.38%
• 1M: -1.40%
• YTD: 11.66%
• 6M: 10.48%
• 1Y: 14.05%
• 3Y*: 11.01%
• 5Y*: 4.35%
• 10Y*: 5.60%

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

DRN vs. FRI - 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%
FRI First Trust S&P REIT Index Fund	11.66%	2.80%	7.84%	13.33%	-24.66%	42.55%	-7.90%	23.67%	-4.28%	3.86%

Correlation

The correlation between DRN and FRI is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.97
Correlation (All Time) Calculated using the full available price history since Jul 17, 2009	0.98

The correlation between DRN and FRI has been stable across timeframes, ranging from 0.93 to 0.98 - a consistent structural relationship.

DRN vs. FRI - Sectors Allocation Comparison

Sectors	DRN	FRI
Real Estate	19.6%	96.2%
Basic Materials	0.4%	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	2.3%
Healthcare	-	-
Industrials	-	-
Technology	-	-
Utilities	-	0.8%

Return for Risk

DRN vs. FRI — 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

FRI

FRI Risk / Return Rank: 32
FRI Sharpe Ratio Rank: 30
FRI Sortino Ratio Rank: 28
FRI Omega Ratio Rank: 28
FRI Calmar Ratio Rank: 38
FRI Martin Ratio Rank: 38

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. FRI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Real Estate Bull 3x Shares (DRN) and First Trust S&P REIT Index Fund (FRI). 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	FRI	Difference
Sharpe ratio Return per unit of total volatility	0.17	1.08	-0.92
Sortino ratio Return per unit of downside risk	0.50	1.52	-1.03
Omega ratio Gain probability vs. loss probability	1.06	1.19	-0.13
Calmar ratio Return relative to maximum drawdown	0.29	1.88	-1.59
Martin ratio Return relative to average drawdown	0.65	6.00	-5.36
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DRN vs. FRI - Sharpe Ratio Comparison

The current DRN Sharpe Ratio is 0.17, which is lower than the FRI Sharpe Ratio of 1.08. The chart below compares the historical Sharpe Ratios of DRN and FRI, 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	FRI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.17	1.08	-0.92
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.20	0.23	-0.44
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.08	0.27	-0.35
Sharpe Ratio (All Time) Calculated using the full available price history	0.21	0.18	+0.03

Drawdowns

DRN vs. FRI - Drawdown Comparison

The maximum DRN drawdown since its inception was -86.32%, which is greater than FRI's maximum drawdown of -71.95%. Use the drawdown chart below to compare losses from any high point for DRN and FRI.

Drawdown Indicators

	DRN	FRI	Difference
Max Drawdown Largest peak-to-trough decline	-86.32%	-71.95%	-14.37%
Max Drawdown (1Y) Largest decline over 1 year	-24.28%	-7.57%	-16.71%
Max Drawdown (3Y) Largest decline over 3 years	-48.26%	-18.90%	-29.36%
Max Drawdown (5Y) Largest decline over 5 years	-80.58%	-31.21%	-49.37%
Max Drawdown (10Y) Largest decline over 10 years	-86.32%	-44.16%	-42.16%
Current Drawdown Current decline from peak	-65.97%	-3.44%	-62.53%
Average Drawdown Average peak-to-trough decline	-35.06%	-13.70%	-21.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.89%	2.37%	+8.52%

Volatility

DRN vs. FRI - Volatility Comparison

Direxion Daily Real Estate Bull 3x Shares (DRN) has a higher volatility of 11.21% compared to First Trust S&P REIT Index Fund (FRI) at 3.99%. This indicates that DRN's price experiences larger fluctuations and is considered to be riskier than FRI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DRN	FRI	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.21%	3.99%	+7.22%
Volatility (6M) Calculated over the trailing 6-month period	29.18%	9.21%	+19.97%
Volatility (1Y) Calculated over the trailing 1-year period	40.04%	13.05%	+26.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	56.66%	18.65%	+38.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	60.62%	21.06%	+39.56%

DRN vs. FRI - Expense Ratio Comparison

DRN has a 0.99% expense ratio, which is higher than FRI's 0.50% expense ratio.

Dividends

DRN vs. FRI - Dividend Comparison

DRN's dividend yield for the trailing twelve months is around 2.23%, less than FRI's 2.60% 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%
FRI First Trust S&P REIT Index Fund	2.60%	2.99%	3.33%	3.24%	2.52%	1.44%	3.08%	2.28%	3.21%	2.82%	3.27%	2.66%

Frequently Asked Questions

Can I hold both DRN and FRI in my portfolio?

With a correlation of 0.93, DRN and FRI 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 FRI?

DRN has higher volatility (11.21%) compared to FRI (3.99%). In terms of maximum drawdown, DRN dropped -86.32% vs FRI's -71.95%.

Which ETF is better, DRN or FRI?

On 10-year performance, FRI leads with 5.60% vs -5.10% for DRN. On fees, FRI is cheaper at 0.50% per year. On volatility, FRI has been the lower-risk option at 3.99%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DRN or FRI?

Over the 10-year period, FRI has performed better with a 5.60% 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 FRI?

FRI is cheaper with a 0.50% expense ratio, compared with 0.99% for DRN.

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

FRI has the higher dividend yield at 2.60%, compared with 2.23% for DRN.

What is the main difference between DRN and FRI?

DRN tracks MSCI US REIT Index (300%), while FRI tracks S&P United States REIT. They also come from different issuers: Direxion and First Trust. Their fees differ too: 0.99% for DRN and 0.50% for FRI.

Which has better risk-adjusted returns?

FRI currently has the higher Sharpe Ratio (1.08 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.