ERX vs. TMF

Last updated Jun 5, 2026

ERX (Direxion Daily Energy Bull 2X Shares) and TMF (Direxion Daily 20+ Year Treasury Bull 3X ETF) are both exchange-traded funds - ERX is a Leveraged Equities fund tracking the Energy Select Sector 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, ERX returned -9.37%/yr vs -16.34%/yr for TMF. At a correlation of -0.30, they often move in opposite directions. ERX charges 1.09%/yr vs 1.01%/yr for TMF.

Performance

ERX vs. TMF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Energy Bull 2X Shares (ERX) 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, ERX achieves a 66.84% return, which is significantly higher than TMF's -5.59% return. Over the past 10 years, ERX has outperformed TMF with an annualized return of -9.37%, while TMF has yielded a comparatively lower -16.34% annualized return.

ERX

• 1D: -0.05%
• 1M: -3.57%
• YTD: 66.84%
• 6M: 58.30%
• 1Y: 98.14%
• 3Y*: 24.19%
• 5Y*: 28.74%
• 10Y*: -9.37%

TMF

• 1D: 0.57%
• 1M: 0.40%
• YTD: -5.59%
• 6M: -9.73%
• 1Y: -3.14%
• 3Y*: -20.49%
• 5Y*: -30.44%
• 10Y*: -16.34%

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

ERX vs. TMF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ERX Direxion Daily Energy Bull 2X Shares	66.84%	2.79%	1.09%	-12.26%	130.58%	111.91%	-91.60%	17.13%	-55.94%	-11.60%
TMF Direxion Daily 20+ Year Treasury Bull 3X ETF	-5.59%	-2.94%	-35.95%	-13.01%	-72.60%	-19.80%	39.02%	34.75%	-11.01%	22.72%

Correlation

The correlation between ERX and TMF is -0.20, 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	-0.20
Correlation (3Y) Calculated over the trailing 3-year period	-0.07
Correlation (5Y) Calculated over the trailing 5-year period	-0.14
Correlation (10Y) Calculated over the trailing 10-year period	-0.23
Correlation (All Time) Calculated using the full available price history since Apr 17, 2009	-0.30

The correlation between ERX and TMF shifts across timeframes, from -0.30 (all time) to -0.07 (3 years), reflecting how their relationship changes across market environments.

ERX vs. TMF - Sectors Allocation Comparison

Sectors	ERX	TMF
Energy	100.0%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	18.7%
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

ERX vs. TMF — Risk / Return Rank

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

ERX

ERX Risk / Return Rank: 68
ERX Sharpe Ratio Rank: 76
ERX Sortino Ratio Rank: 60
ERX Omega Ratio Rank: 58
ERX Calmar Ratio Rank: 82
ERX Martin Ratio Rank: 64

TMF

TMF Risk / Return Rank: 8
TMF Sharpe Ratio Rank: 8
TMF Sortino Ratio Rank: 8
TMF Omega Ratio Rank: 8
TMF Calmar Ratio Rank: 8
TMF Martin Ratio Rank: 8

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. TMF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Energy Bull 2X Shares (ERX) 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.

	ERX	TMF	Difference
Sharpe ratio: Return per unit of total volatility	2.42	-0.11	+2.53
Sortino ratio: Return per unit of downside risk	2.79	0.04	+2.75
Omega ratio: Gain probability vs. loss probability	1.35	1.00	+0.34
Calmar ratio: Return relative to maximum drawdown	4.23	-0.12	+4.35
Martin ratio: Return relative to average drawdown	11.45	-0.27	+11.72
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. TMF - Sharpe Ratio Comparison

The current ERX Sharpe Ratio is 2.42, which is higher than the TMF Sharpe Ratio of -0.11. The chart below compares the historical Sharpe Ratios of ERX 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

	ERX	TMF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.42	-0.11	+2.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.56	-0.65	+1.21
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.14	-0.37	+0.24
Sharpe Ratio (All Time) Calculated using the full available price history	-0.09	-0.13	+0.05

Drawdowns

ERX vs. TMF - Drawdown Comparison

The maximum ERX drawdown since its inception was -99.54%, which is greater than TMF's maximum drawdown of -92.89%. Use the drawdown chart below to compare losses from any high point for ERX and TMF.

Drawdown Indicators

	ERX	TMF	Difference
Max Drawdown Largest peak-to-trough decline	-99.54%	-92.89%	-6.65%
Max Drawdown (1Y) Largest decline over 1 year	-23.34%	-26.51%	+3.17%
Max Drawdown (3Y) Largest decline over 3 years	-42.34%	-56.31%	+13.97%
Max Drawdown (5Y) Largest decline over 5 years	-46.90%	-88.81%	+41.91%
Max Drawdown (10Y) Largest decline over 10 years	-98.59%	-92.89%	-5.70%
Current Drawdown Current decline from peak	-91.58%	-92.18%	+0.60%
Average Drawdown Average peak-to-trough decline	-67.03%	-43.64%	-23.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.60%	11.55%	-2.95%

Volatility

ERX vs. TMF - Volatility Comparison

Direxion Daily Energy Bull 2X Shares (ERX) has a higher volatility of 16.49% compared to Direxion Daily 20+ Year Treasury Bull 3X ETF (TMF) at 7.99%. This indicates that ERX'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

	ERX	TMF	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.49%	7.99%	+8.50%
Volatility (6M) Calculated over the trailing 6-month period	33.31%	19.02%	+14.29%
Volatility (1Y) Calculated over the trailing 1-year period	41.08%	28.76%	+12.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	51.98%	46.72%	+5.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	69.16%	43.91%	+25.25%

ERX vs. TMF - Expense Ratio Comparison

ERX has a 1.09% expense ratio, which is higher than TMF's 1.01% expense ratio.

Dividends

ERX vs. TMF - Dividend Comparison

ERX's dividend yield for the trailing twelve months is around 1.61%, less than TMF's 4.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
TMF Direxion Daily 20+ Year Treasury Bull 3X ETF	4.13%	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 ERX and TMF in my portfolio?

ERX and TMF have a correlation of -0.20, 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 TMF?

ERX has higher volatility (16.49%) compared to TMF (7.99%). In terms of maximum drawdown, ERX dropped -99.54% vs TMF's -92.89%.

Which ETF is better, ERX or TMF?

On 10-year performance, ERX leads with -9.37% vs -16.34% for TMF. On fees, TMF is cheaper at 1.01% per year. On volatility, TMF has been the lower-risk option at 7.99%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ERX or TMF?

Over the 10-year period, ERX has performed better with a -9.37% return vs -16.34%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ERX or TMF?

TMF is cheaper with a 1.01% expense ratio, compared with 1.09% for ERX.

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

TMF has the higher dividend yield at 4.13%, compared with 1.61% for ERX.

What is the main difference between ERX and TMF?

ERX is categorized as Leveraged Equities, while TMF is Leveraged Bonds. ERX tracks Energy Select Sector Index (300%), while TMF tracks ICE U.S. Treasury 20+ Year Bond Index (300%). Their fees differ too: 1.09% for ERX and 1.01% for TMF.

Which has better risk-adjusted returns?

ERX currently has the higher Sharpe Ratio (2.42 vs -0.11), 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.