DRN vs. USML
DRN (Direxion Daily Real Estate Bull 3x Shares) and USML (ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN) are both exchange-traded funds - DRN is a REIT fund tracking the MSCI US REIT Index (300%), while USML is a Leveraged Equities fund tracking the MSCI USA Minimum Volatility Index. Both are passively managed. Over the past 5 years, DRN returned -12.09%/yr vs 7.63%/yr for USML. A 0.71 correlation means they provide meaningful diversification when combined. DRN charges 0.99%/yr vs 0.95%/yr for USML.
Performance
DRN vs. USML - Performance Comparison
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Returns By Period
In the year-to-date period, DRN achieves a 23.49% return, which is significantly higher than USML's 0.78% return.
DRN
- 1D
- -4.47%
- 1M
- -3.86%
- YTD
- 23.49%
- 6M
- 23.07%
- 1Y
- 9.95%
- 3Y*
- 7.81%
- 5Y*
- -12.09%
- 10Y*
- -4.83%
USML
- 1D
- -0.92%
- 1M
- 2.21%
- YTD
- 0.78%
- 6M
- 2.17%
- 1Y
- 0.57%
- 3Y*
- 15.45%
- 5Y*
- 7.63%
- 10Y*
- —
DRN vs. USML - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
DRN Direxion Daily Real Estate Bull 3x Shares | 23.49% | -11.24% | -5.29% | 12.03% | -67.26% | 128.84% |
USML ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN | 0.78% | 9.33% | 23.97% | 11.37% | -22.87% | 42.12% |
Correlation
The correlation between DRN and USML is 0.56, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.56 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.64 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.71 |
Correlation (All Time) Calculated using the full available price history since Feb 8, 2021 | 0.71 |
The correlation between DRN and USML shifts across timeframes, from 0.56 (1 year) to 0.71 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
DRN vs. USML — Risk / Return Rank
DRN
USML
DRN vs. USML - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Real Estate Bull 3x Shares (DRN) and ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML). 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 | USML | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.21 | ||
| Sortino ratioReturn per unit of downside risk | +0.44 | ||
| Omega ratioGain probability vs. loss probability | 1.08 | 1.02 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 0.41 | 0.04 | +0.37 |
| Martin ratioReturn relative to average drawdown | 0.91 | 0.13 | +0.78 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| DRN | USML | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.25 | 0.03 | +0.21 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.21 | 0.31 | -0.53 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.08 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.21 | 0.42 | -0.20 |
Drawdowns
DRN vs. USML - Drawdown Comparison
The maximum DRN drawdown since its inception was -86.32%, which is greater than USML's maximum drawdown of -35.34%. Use the drawdown chart below to compare losses from any high point for DRN and USML.
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Drawdown Indicators
| DRN | USML | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -86.32% | -35.34% | -50.98% |
Max Drawdown (1Y)Largest decline over 1 year | -24.28% | -13.09% | -11.19% |
Max Drawdown (3Y)Largest decline over 3 years | -48.26% | -19.14% | -29.12% |
Max Drawdown (5Y)Largest decline over 5 years | -80.58% | -35.34% | -45.24% |
Max Drawdown (10Y)Largest decline over 10 years | -86.32% | — | — |
Current DrawdownCurrent decline from peak | -64.79% | -5.74% | -59.05% |
Average DrawdownAverage peak-to-trough decline | -35.09% | -10.40% | -24.69% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 10.92% | 4.36% | +6.56% |
Volatility
DRN vs. USML - Volatility Comparison
Direxion Daily Real Estate Bull 3x Shares (DRN) has a higher volatility of 12.91% compared to ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML) at 4.70%. This indicates that DRN's price experiences larger fluctuations and is considered to be riskier than USML based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| DRN | USML | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.91% | 4.70% | +8.21% |
Volatility (6M)Calculated over the trailing 6-month period | 29.87% | 11.61% | +18.26% |
Volatility (1Y)Calculated over the trailing 1-year period | 40.83% | 16.45% | +24.38% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 56.73% | 24.48% | +32.25% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 60.66% | 24.28% | +36.38% |
DRN vs. USML - Expense Ratio Comparison
DRN has a 0.99% expense ratio, which is higher than USML's 0.95% expense ratio.
Dividends
DRN vs. USML - Dividend Comparison
DRN's dividend yield for the trailing twelve months is around 2.16%, while USML has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
DRN Direxion Daily Real Estate Bull 3x Shares | 2.16% | 2.81% | 2.24% | 2.84% | 2.70% | 4.21% | 1.90% | 2.59% | 3.11% | 0.91% |
USML ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
DRN and USML have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
DRN has higher volatility (12.91%) compared to USML (4.70%). In terms of maximum drawdown, DRN dropped -86.32% vs USML's -35.34%.
On 5-year performance, USML leads with 7.63% vs -12.09% for DRN. On fees, USML is cheaper at 0.95% per year. On volatility, USML has been the lower-risk option at 4.70%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, USML has performed better with a 7.63% return vs -12.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
USML is cheaper with a 0.95% expense ratio, compared with 0.99% for DRN.
DRN has the higher dividend yield at 2.16%, compared with 0.00% for USML.
DRN is categorized as REIT, while USML is Leveraged Equities. DRN tracks MSCI US REIT Index (300%), while USML tracks MSCI USA Minimum Volatility Index. They also come from different issuers: Direxion and UBS. Their fees differ too: 0.99% for DRN and 0.95% for USML.
DRN currently has the higher Sharpe Ratio (0.25 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.
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