ERX vs. SCO
Compare and contrast key facts about Direxion Daily Energy Bull 2X Shares (ERX) and ProShares UltraShort Bloomberg Crude Oil (SCO).
ERX and SCO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ERX is a passively managed fund by Direxion that tracks the performance of the Energy Select Sector Index (300%). It was launched on Apr 1, 2020. SCO is a passively managed fund by ProShares that tracks the performance of the Bloomberg Commodity Balanced WTI Crude Oil Index (-200%). It was launched on Nov 24, 2008. Both ERX and SCO 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: ERX or SCO.
Key characteristics
| ERX | SCO | |
|---|---|---|
| YTD Return | 22.74% | -8.23% |
| 1Y Return | 26.10% | -7.17% |
| 3Y Return (Ann) | 32.05% | -33.85% |
| 5Y Return (Ann) | -13.34% | -41.53% |
| 10Y Return (Ann) | -20.46% | -26.91% |
| Sharpe Ratio | 0.60 | 0.01 |
| Sortino Ratio | 1.02 | 0.36 |
| Omega Ratio | 1.13 | 1.04 |
| Calmar Ratio | 0.22 | 0.00 |
| Martin Ratio | 1.64 | 0.02 |
| Ulcer Index | 13.01% | 21.19% |
| Daily Std Dev | 35.47% | 47.71% |
| Max Drawdown | -99.54% | -99.50% |
| Current Drawdown | -94.04% | -99.35% |
Correlation
The correlation between ERX and SCO is -0.65. 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
ERX vs. SCO - Performance Comparison
In the year-to-date period, ERX achieves a 22.74% return, which is significantly higher than SCO's -8.23% return. Over the past 10 years, ERX has outperformed SCO with an annualized return of -20.46%, while SCO has yielded a comparatively lower -26.91% annualized return. 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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ERX vs. SCO - Expense Ratio Comparison
ERX has a 1.09% expense ratio, which is higher than SCO's 0.95% expense ratio.
Risk-Adjusted Performance
ERX vs. SCO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Energy Bull 2X Shares (ERX) and ProShares UltraShort Bloomberg Crude Oil (SCO). 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
ERX vs. SCO - Dividend Comparison
ERX's dividend yield for the trailing twelve months is around 2.49%, while SCO has not paid dividends to shareholders.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|
ERX Direxion Daily Energy Bull 2X Shares | 2.49% | 3.17% | 2.23% | 2.16% | 2.35% | 1.56% | 3.10% | 0.85% |
SCO ProShares UltraShort Bloomberg Crude Oil | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Drawdowns
ERX vs. SCO - Drawdown Comparison
The maximum ERX drawdown since its inception was -99.54%, roughly equal to the maximum SCO drawdown of -99.50%. Use the drawdown chart below to compare losses from any high point for ERX and SCO. For additional features, visit the drawdowns tool.
Volatility
ERX vs. SCO - Volatility Comparison
The current volatility for Direxion Daily Energy Bull 2X Shares (ERX) is 9.72%, while ProShares UltraShort Bloomberg Crude Oil (SCO) has a volatility of 15.80%. This indicates that ERX experiences smaller price fluctuations and is considered to be less risky than SCO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.