ERX vs. BSMW

Last updated Jun 4, 2026

ERX (Direxion Daily Energy Bull 2X Shares) and BSMW (Invesco BulletShares 2032 Municipal Bond ETF) are both exchange-traded funds - ERX is a Leveraged Equities fund tracking the Energy Select Sector Index (300%), while BSMW is a Municipal Bonds fund tracking the Invesco BulletShares USD Municipal Bond 2032 Index. Both are passively managed. Over the past 3 years, ERX returned 23.69%/yr vs 3.20%/yr for BSMW. At a correlation of -0.13, they often move in opposite directions. ERX charges 1.09%/yr vs 0.18%/yr for BSMW.

Performance

ERX vs. BSMW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Energy Bull 2X Shares (ERX) and Invesco BulletShares 2032 Municipal Bond ETF (BSMW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ERX achieves a 66.93% return, which is significantly higher than BSMW's 1.30% return.

ERX

• 1D: 2.68%
• 1M: -3.38%
• YTD: 66.93%
• 6M: 59.74%
• 1Y: 90.37%
• 3Y*: 23.69%
• 5Y*: 28.75%
• 10Y*: -8.79%

BSMW

• 1D: 0.11%
• 1M: 0.55%
• YTD: 1.30%
• 6M: 1.59%
• 1Y: 6.93%
• 3Y*: 3.20%
• 5Y*: —
• 10Y*: —

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

ERX vs. BSMW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
ERX Direxion Daily Energy Bull 2X Shares	66.93%	2.79%	1.09%	-5.89%
BSMW Invesco BulletShares 2032 Municipal Bond ETF	1.30%	3.42%	-0.35%	7.00%

Correlation

The correlation between ERX and BSMW is -0.30, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.30
Correlation (3Y) Calculated over the trailing 3-year period	-0.11
Correlation (All Time) Calculated using the full available price history since Mar 2, 2023	-0.13

The correlation between ERX and BSMW shifts across timeframes, from -0.30 (1 year) to -0.11 (3 years), reflecting how their relationship changes across market environments.

ERX vs. BSMW - Sectors Allocation Comparison

Sectors	ERX	BSMW
Energy	100.0%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	0.3%
Consumer Defensive	-	-
Financial Services	-	1.7%
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	0.1%
Utilities	-	-

Return for Risk

ERX vs. BSMW — Risk / Return Rank

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

ERX

ERX Risk / Return Rank: 61
ERX Sharpe Ratio Rank: 65
ERX Sortino Ratio Rank: 53
ERX Omega Ratio Rank: 51
ERX Calmar Ratio Rank: 76
ERX Martin Ratio Rank: 59

BSMW

BSMW Risk / Return Rank: 67
BSMW Sharpe Ratio Rank: 78
BSMW Sortino Ratio Rank: 80
BSMW Omega Ratio Rank: 83
BSMW Calmar Ratio Rank: 49
BSMW Martin Ratio Rank: 46

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.

ERX vs. BSMW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Energy Bull 2X Shares (ERX) and Invesco BulletShares 2032 Municipal Bond ETF (BSMW). 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.

	ERX	BSMW	Difference
Sharpe ratio: Return per unit of total volatility	2.21	2.48	-0.26
Sortino ratio: Return per unit of downside risk	2.62	3.56	-0.94
Omega ratio: Gain probability vs. loss probability	1.32	1.50	-0.18
Calmar ratio: Return relative to maximum drawdown	3.89	2.39	+1.51
Martin ratio: Return relative to average drawdown	10.60	7.53	+3.06
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ERX vs. BSMW - Sharpe Ratio Comparison

The current ERX Sharpe Ratio is 2.21, which is comparable to the BSMW Sharpe Ratio of 2.48. The chart below compares the historical Sharpe Ratios of ERX and BSMW, 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

	ERX	BSMW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.21	2.48	-0.26
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.56	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.13	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.09	0.69	-0.78

Drawdowns

ERX vs. BSMW - Drawdown Comparison

The maximum ERX drawdown since its inception was -99.54%, which is greater than BSMW's maximum drawdown of -7.57%. Use the drawdown chart below to compare losses from any high point for ERX and BSMW.

Drawdown Indicators

	ERX	BSMW	Difference
Max Drawdown Largest peak-to-trough decline	-99.54%	-7.57%	-91.97%
Max Drawdown (1Y) Largest decline over 1 year	-23.34%	-2.92%	-20.42%
Max Drawdown (3Y) Largest decline over 3 years	-42.34%	-7.34%	-35.00%
Max Drawdown (5Y) Largest decline over 5 years	-46.90%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-98.59%	—	—
Current Drawdown Current decline from peak	-91.57%	-0.98%	-90.59%
Average Drawdown Average peak-to-trough decline	-67.02%	-1.72%	-65.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.57%	0.92%	+7.65%

Volatility

ERX vs. BSMW - Volatility Comparison

Direxion Daily Energy Bull 2X Shares (ERX) has a higher volatility of 16.49% compared to Invesco BulletShares 2032 Municipal Bond ETF (BSMW) at 0.93%. This indicates that ERX's price experiences larger fluctuations and is considered to be riskier than BSMW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ERX	BSMW	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.49%	0.93%	+15.56%
Volatility (6M) Calculated over the trailing 6-month period	33.45%	1.98%	+31.47%
Volatility (1Y) Calculated over the trailing 1-year period	41.14%	2.82%	+38.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	51.98%	5.00%	+46.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	69.18%	5.00%	+64.18%

ERX vs. BSMW - Expense Ratio Comparison

ERX has a 1.09% expense ratio, which is higher than BSMW's 0.18% expense ratio.

Dividends

ERX vs. BSMW - Dividend Comparison

ERX's dividend yield for the trailing twelve months is around 1.61%, less than BSMW's 3.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
BSMW Invesco BulletShares 2032 Municipal Bond ETF	3.20%	3.24%	3.48%	2.36%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ERX Direxion Daily Energy Bull 2X Shares	1.61%	2.54%	2.94%	3.17%	2.23%	2.16%	2.35%	1.56%	3.10%	0.85%

Frequently Asked Questions

Can I hold both ERX and BSMW in my portfolio?

ERX and BSMW have a correlation of -0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ERX or BSMW?

ERX has higher volatility (16.49%) compared to BSMW (0.93%). In terms of maximum drawdown, ERX dropped -99.54% vs BSMW's -7.57%.

Which ETF is better, ERX or BSMW?

On 3-year performance, ERX leads with 23.69% vs 3.20% for BSMW. On fees, BSMW is cheaper at 0.18% per year. On volatility, BSMW has been the lower-risk option at 0.93%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ERX or BSMW?

Over the 3-year period, ERX has performed better with a 23.69% return vs 3.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ERX or BSMW?

BSMW is cheaper with a 0.18% expense ratio, compared with 1.09% for ERX.

Which ETF pays a higher dividend yield, ERX or BSMW?

BSMW has the higher dividend yield at 3.20%, compared with 1.61% for ERX.

What is the main difference between ERX and BSMW?

ERX is categorized as Leveraged Equities, while BSMW is Municipal Bonds. ERX tracks Energy Select Sector Index (300%), while BSMW tracks Invesco BulletShares USD Municipal Bond 2032 Index. They also come from different issuers: Direxion and Invesco. Their fees differ too: 1.09% for ERX and 0.18% for BSMW.

Which has better risk-adjusted returns?

BSMW currently has the higher Sharpe Ratio (2.48 vs 2.21), 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.