EDC vs. TMF

Last updated Jun 6, 2026

EDC (Direxion Daily Emerging Markets Bull 3X Shares) and TMF (Direxion Daily 20+ Year Treasury Bull 3X ETF) are both exchange-traded funds - EDC is a Leveraged Equities fund tracking the MSCI Emerging Markets Index (300%), while TMF is a Leveraged Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index (300%). Both are passively managed. Over the past 10 years, EDC returned 5.33%/yr vs -16.54%/yr for TMF. At a correlation of -0.20, they often move in opposite directions. EDC charges 1.33%/yr vs 1.01%/yr for TMF.

Performance

EDC vs. TMF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Emerging Markets Bull 3X Shares (EDC) and Direxion Daily 20+ Year Treasury Bull 3X ETF (TMF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EDC achieves a 41.26% return, which is significantly higher than TMF's -7.07% return. Over the past 10 years, EDC has outperformed TMF with an annualized return of 5.33%, while TMF has yielded a comparatively lower -16.54% annualized return.

EDC

• 1D: -19.64%
• 1M: -16.09%
• YTD: 41.26%
• 6M: 46.07%
• 1Y: 121.30%
• 3Y*: 39.05%
• 5Y*: -5.24%
• 10Y*: 5.33%

TMF

• 1D: -1.57%
• 1M: -3.39%
• YTD: -7.07%
• 6M: -9.80%
• 1Y: -4.79%
• 3Y*: -21.31%
• 5Y*: -30.66%
• 10Y*: -16.54%

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

EDC vs. TMF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EDC Direxion Daily Emerging Markets Bull 3X Shares	41.26%	94.58%	-2.00%	7.48%	-60.25%	-20.81%	6.49%	43.92%	-49.87%	138.61%
TMF Direxion Daily 20+ Year Treasury Bull 3X ETF	-7.07%	-2.94%	-35.95%	-13.01%	-72.60%	-19.80%	39.02%	34.75%	-11.01%	22.72%

Correlation

The correlation between EDC and TMF is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.25
Correlation (3Y) Calculated over the trailing 3-year period	0.17
Correlation (5Y) Calculated over the trailing 5-year period	0.06
Correlation (10Y) Calculated over the trailing 10-year period	-0.05
Correlation (All Time) Calculated using the full available price history since Apr 17, 2009	-0.20

The correlation between EDC and TMF shifts across timeframes, from -0.20 (all time) to 0.25 (1 year), reflecting how their relationship changes across market environments.

EDC vs. TMF - Sectors Allocation Comparison

Sectors	EDC	TMF
Technology	32.7%	-
Financial Services	20.8%	18.7%
Consumer Cyclical	10.3%	-
Communication Services	7.8%	-
Industrials	7.3%	-
Basic Materials	7.0%	-
Energy	4.4%	-
Consumer Defensive	3.2%	-
Healthcare	3.2%	-
Utilities	2.2%	-
Real Estate	1.1%	-

Return for Risk

EDC vs. TMF — Risk / Return Rank

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

EDC

EDC Risk / Return Rank: 59
EDC Sharpe Ratio Rank: 60
EDC Sortino Ratio Rank: 49
EDC Omega Ratio Rank: 56
EDC Calmar Ratio Rank: 67
EDC Martin Ratio Rank: 64

TMF

TMF Risk / Return Rank: 7
TMF Sharpe Ratio Rank: 7
TMF Sortino Ratio Rank: 7
TMF Omega Ratio Rank: 7
TMF Calmar Ratio Rank: 7
TMF Martin Ratio Rank: 7

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.

EDC vs. TMF - Risk-Adjusted Trends 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 ETF (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.

	EDC	TMF	Difference
Sharpe ratio: Return per unit of total volatility	1.94	-0.17	+2.11
Sortino ratio: Return per unit of downside risk	2.30	-0.04	+2.35
Omega ratio: Gain probability vs. loss probability	1.33	1.00	+0.34
Calmar ratio: Return relative to maximum drawdown	3.21	-0.18	+3.39
Martin ratio: Return relative to average drawdown	11.18	-0.41	+11.59
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EDC vs. TMF - Sharpe Ratio Comparison

The current EDC Sharpe Ratio is 1.94, which is higher than the TMF Sharpe Ratio of -0.17. The chart below compares the historical Sharpe Ratios of EDC and TMF, 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

	EDC	TMF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.94	-0.17	+2.11
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.09	-0.66	+0.57
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.09	-0.38	+0.47
Sharpe Ratio (All Time) Calculated using the full available price history	0.02	-0.14	+0.16

Drawdowns

EDC vs. TMF - Drawdown Comparison

The maximum EDC drawdown since its inception was -92.54%, roughly equal to the maximum TMF drawdown of -92.89%. Use the drawdown chart below to compare losses from any high point for EDC and TMF.

Drawdown Indicators

	EDC	TMF	Difference
Max Drawdown Largest peak-to-trough decline	-92.54%	-92.89%	+0.35%
Max Drawdown (1Y) Largest decline over 1 year	-37.98%	-26.51%	-11.47%
Max Drawdown (3Y) Largest decline over 3 years	-49.48%	-56.31%	+6.83%
Max Drawdown (5Y) Largest decline over 5 years	-80.70%	-88.81%	+8.11%
Max Drawdown (10Y) Largest decline over 10 years	-87.01%	-92.89%	+5.88%
Current Drawdown Current decline from peak	-70.02%	-92.31%	+22.29%
Average Drawdown Average peak-to-trough decline	-65.36%	-43.65%	-21.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.90%	11.63%	-0.73%

Volatility

EDC vs. TMF - Volatility Comparison

Direxion Daily Emerging Markets Bull 3X Shares (EDC) has a higher volatility of 32.64% compared to Direxion Daily 20+ Year Treasury Bull 3X ETF (TMF) at 7.78%. 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.

Volatility by Period

	EDC	TMF	Difference
Volatility (1M) Calculated over the trailing 1-month period	32.64%	7.78%	+24.86%
Volatility (6M) Calculated over the trailing 6-month period	56.70%	19.06%	+37.64%
Volatility (1Y) Calculated over the trailing 1-year period	63.00%	28.41%	+34.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	57.35%	46.71%	+10.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	61.01%	43.91%	+17.10%

EDC vs. TMF - Expense Ratio Comparison

EDC has a 1.33% expense ratio, which is higher than TMF's 1.01% expense ratio.

Dividends

EDC vs. TMF - Dividend Comparison

EDC's dividend yield for the trailing twelve months is around 1.21%, less than TMF's 4.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
EDC Direxion Daily Emerging Markets Bull 3X Shares	1.21%	1.79%	3.94%	3.54%	0.00%	0.18%	0.44%	0.97%	0.78%	0.25%
TMF Direxion Daily 20+ Year Treasury Bull 3X ETF	4.20%	4.06%	4.29%	2.82%	1.62%	0.13%	2.23%	0.94%	1.49%	0.41%

Frequently Asked Questions

Can I hold both EDC and TMF in my portfolio?

EDC and TMF have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EDC or TMF?

EDC has higher volatility (32.64%) compared to TMF (7.78%). In terms of maximum drawdown, EDC dropped -92.54% vs TMF's -92.89%.

Which ETF is better, EDC or TMF?

On 10-year performance, EDC leads with 5.33% vs -16.54% for TMF. On fees, TMF is cheaper at 1.01% per year. On volatility, TMF has been the lower-risk option at 7.78%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EDC or TMF?

Over the 10-year period, EDC has performed better with a 5.33% return vs -16.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EDC or TMF?

TMF is cheaper with a 1.01% expense ratio, compared with 1.33% for EDC.

Which ETF pays a higher dividend yield, EDC or TMF?

TMF has the higher dividend yield at 4.20%, compared with 1.21% for EDC.

What is the main difference between EDC and TMF?

EDC is categorized as Leveraged Equities, while TMF is Leveraged Bonds. EDC tracks MSCI Emerging Markets Index (300%), while TMF tracks ICE U.S. Treasury 20+ Year Bond Index (300%). Their fees differ too: 1.33% for EDC and 1.01% for TMF.

Which has better risk-adjusted returns?

EDC currently has the higher Sharpe Ratio (1.94 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.