EDC vs. TMF
Compare and contrast key facts about Direxion Daily Emerging Markets Bull 3X Shares (EDC) and Direxion Daily 20-Year Treasury Bull 3X (TMF).
EDC and TMF are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. EDC is a passively managed fund by Direxion that tracks the performance of the MSCI Emerging Markets Index (300%). It was launched on Dec 17, 2008. TMF is a passively managed fund by Direxion that tracks the performance of the NYSE 20 Year Plus Treasury Bond Index (300%). It was launched on Apr 16, 2009. Both EDC and TMF are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: EDC or TMF.
Key characteristics
| EDC | TMF | |
|---|---|---|
| YTD Return | 6.63% | -29.39% |
| 1Y Return | 15.53% | -47.14% |
| 3Y Return (Ann) | -30.59% | -41.43% |
| 5Y Return (Ann) | -16.79% | -25.13% |
| 10Y Return (Ann) | -10.58% | -10.43% |
| Sharpe Ratio | 0.34 | -0.95 |
| Daily Std Dev | 44.72% | 48.81% |
| Max Drawdown | -92.54% | -92.18% |
| Current Drawdown | -88.13% | -90.76% |
Correlation
The correlation between EDC and TMF is -0.24. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.
Performance
EDC vs. TMF - Performance Comparison
In the year-to-date period, EDC achieves a 6.63% return, which is significantly higher than TMF's -29.39% return. Both investments have delivered pretty close results over the past 10 years, with EDC having a -10.58% annualized return and TMF not far ahead at -10.43%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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EDC vs. TMF - Expense Ratio Comparison
EDC has a 1.33% expense ratio, which is higher than TMF's 1.09% expense ratio.
Risk-Adjusted Performance
EDC vs. TMF - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Emerging Markets Bull 3X Shares (EDC) and Direxion Daily 20-Year Treasury Bull 3X (TMF). 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.
Dividends
EDC vs. TMF - Dividend Comparison
EDC's dividend yield for the trailing twelve months is around 3.77%, less than TMF's 3.96% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EDC Direxion Daily Emerging Markets Bull 3X Shares | 3.77% | 3.54% | 0.00% | 0.18% | 0.44% | 0.97% | 0.78% | 0.25% | 0.00% | 0.00% | 0.00% | 0.00% |
TMF Direxion Daily 20-Year Treasury Bull 3X | 3.96% | 2.82% | 1.62% | 0.13% | 0.48% | 0.94% | 1.49% | 0.41% | 0.00% | 0.00% | 0.00% | 0.57% |
Drawdowns
EDC vs. TMF - Drawdown Comparison
The maximum EDC drawdown since its inception was -92.54%, roughly equal to the maximum TMF drawdown of -92.18%. Use the drawdown chart below to compare losses from any high point for EDC and TMF. For additional features, visit the drawdowns tool.
Volatility
EDC vs. TMF - Volatility Comparison
Direxion Daily Emerging Markets Bull 3X Shares (EDC) has a higher volatility of 15.16% compared to Direxion Daily 20-Year Treasury Bull 3X (TMF) at 12.27%. This indicates that EDC's price experiences larger fluctuations and is considered to be riskier than TMF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.