ERX vs. VDE

Last updated Aug 6, 2026

ERX (Direxion Daily Energy Bull 2X Shares) and VDE (Vanguard Energy ETF) are both Energy Equities funds - ERX tracks the Energy Select Sector Index (200%) while VDE tracks the MSCI US Investable Market Energy 25/50 Index. Both are passively managed. Over the past 10 years, ERX returned -9.50%/yr vs 9.35%/yr for VDE. Their 0.99 correlation means they have historically moved very closely together. ERX charges 0.91%/yr vs 0.09%/yr for VDE.

Performance

ERX vs. VDE - Performance Comparison

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

Returns By Period

In the year-to-date period, ERX achieves a 58.73% return, which is significantly higher than VDE's 29.92% return. Over the past 10 years, ERX has underperformed VDE with an annualized return of -9.50%, while VDE has yielded a comparatively higher 9.35% annualized return.

ERX

• 1D: -3.72%
• 1M: 15.60%
• 6M: 14.96%
• YTD: 58.73%
• 1Y: 73.31%
• 3Y*: 14.98%
• 5Y*: 33.57%
• 10Y*: -9.50%
• ALL TIME*: -7.37%

VDE

• 1D: -2.23%
• 1M: 7.61%
• 6M: 10.24%
• YTD: 29.92%
• 1Y: 38.29%
• 3Y*: 13.33%
• 5Y*: 22.68%
• 10Y*: 9.35%
• ALL TIME*: 8.13%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
ERX Direxion Daily Energy Bull 2X Shares	$23.06M	$23.66M	$27.73M
VDE Vanguard Energy ETF	$80.86M	$75.68M	$107.12M

ERX vs. VDE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ERX Direxion Daily Energy Bull 2X Shares	58.73%	2.79%	1.09%	-12.26%	130.58%	111.91%	-91.60%	17.13%	-55.94%	-11.60%
VDE Vanguard Energy ETF	29.92%	7.11%	6.75%	0.03%	62.89%	56.31%	-33.02%	9.28%	-19.95%	-2.50%

Correlation

The correlation between ERX and VDE is 0.99 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.99
Correlation (3Y) Balances recent behavior with more history.	0.99
Correlation (5Y) Shows whether the relationship held over a longer period.	1.00
Correlation (10Y) Provides a long-term view across more market conditions.	0.99
Correlation (All Time) Calculated using the full available price history since Nov 19, 2008	0.99

The correlation between ERX and VDE has been stable across timeframes, ranging from 0.99 to 1.00 - a consistent structural relationship.

ERX vs. VDE - Sectors Allocation Comparison

Sectors	ERX	VDE
Energy	100.0%	76.9%
Basic Materials	-	0.4%
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	0.3%
Real Estate	-	-
Technology	-	-
Utilities	-	0.1%

Return for Risk

ERX vs. VDE — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

ERX

ERX Risk / Return Rank: 56
ERX Sharpe Ratio Rank: 65
ERX Sortino Ratio Rank: 55
ERX Omega Ratio Rank: 52
ERX Calmar Ratio Rank: 61
ERX Martin Ratio Rank: 48

VDE

VDE Risk / Return Rank: 61
VDE Sharpe Ratio Rank: 70
VDE Sortino Ratio Rank: 63
VDE Omega Ratio Rank: 60
VDE Calmar Ratio Rank: 64
VDE Martin Ratio Rank: 52

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

ERX vs. VDE - Risk-Adjusted Trends Comparison

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

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ERX	VDE	Difference
Sharpe ratio: Return per unit of total volatility	1.74	1.83	-0.09
Sortino ratio: Return per unit of downside risk	2.19	2.39	-0.20
Omega ratio: Gain probability vs. loss probability	1.27	1.30	-0.03
Calmar ratio: Return relative to maximum drawdown	2.46	2.56	-0.10
Martin ratio: Return relative to average drawdown	6.18	6.84	-0.66

ERX vs. VDE - Sharpe Ratio Comparison

The current ERX Sharpe Ratio is 1.74, which is comparable to the VDE Sharpe Ratio of 1.83. The chart below compares the historical Sharpe Ratios of ERX and VDE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ERX vs. VDE - Drawdown Comparison

The maximum ERX drawdown since its inception was -99.54%, which is greater than VDE's maximum drawdown of -74.20%. Use the drawdown chart below to compare losses from any high point for ERX and VDE.

Drawdown Indicators

	ERX	VDE	Difference
Max Drawdown Largest peak-to-trough decline	-99.54%	-74.20%	-25.34%
Max Drawdown (1Y) Largest decline over 1 year	-29.97%	-15.04%	-14.93%
Max Drawdown (3Y) Largest decline over 3 years	-42.34%	-21.41%	-20.93%
Max Drawdown (5Y) Largest decline over 5 years	-46.90%	-26.58%	-20.32%
Max Drawdown (10Y) Largest decline over 10 years	-98.59%	-69.29%	-29.30%
Current Drawdown Current decline from peak	-91.99%	-8.08%	-83.91%
Average Drawdown Average peak-to-trough decline	-67.26%	-19.88%	-47.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.90%	5.61%	+6.29%

Volatility

ERX vs. VDE - Volatility Comparison

Direxion Daily Energy Bull 2X Shares (ERX) has a higher volatility of 12.41% compared to Vanguard Energy ETF (VDE) at 6.35%. This indicates that ERX's price experiences larger fluctuations and is considered to be riskier than VDE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ERX	VDE	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.41%	6.35%	+6.06%
Volatility (6M) Calculated over the trailing 6-month period	33.24%	16.50%	+16.74%
Volatility (1Y) Calculated over the trailing 1-year period	42.40%	21.02%	+21.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	51.46%	26.13%	+25.33%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	68.84%	29.91%	+38.93%

ERX vs. VDE - Expense Ratio Comparison

ERX has a 0.91% expense ratio, which is higher than VDE's 0.09% expense ratio.

Dividends

ERX vs. VDE - Dividend Comparison

ERX's dividend yield for the trailing twelve months is around 1.61%, less than VDE's 2.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%	0.00%	0.00%
VDE Vanguard Energy ETF	2.49%	3.11%	3.23%	3.34%	3.65%	4.13%	4.76%	3.42%	3.35%	2.90%	2.31%	3.17%

Frequently Asked Questions

Can I hold both ERX and VDE in my portfolio?

With a correlation of 0.99, ERX and VDE move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, ERX or VDE?

ERX has higher volatility (12.41%) compared to VDE (6.35%). In terms of maximum drawdown, ERX dropped -99.54% vs VDE's -74.20%.

Which ETF is better, ERX or VDE?

On 10-year performance, VDE leads with 9.35% vs -9.50% for ERX. On fees, VDE is cheaper at 0.09% per year. On volatility, VDE has been the lower-risk option at 6.35%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ERX or VDE?

Over the 10-year period, VDE has performed better with a 9.35% return vs -9.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ERX or VDE?

VDE is cheaper with a 0.09% expense ratio, compared with 0.91% for ERX.

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

VDE has the higher dividend yield at 2.49%, compared with 1.61% for ERX.

What is the main difference between ERX and VDE?

ERX tracks Energy Select Sector Index (200%), while VDE tracks MSCI US Investable Market Energy 25/50 Index. They also come from different issuers: Direxion and Vanguard. Their fees differ too: 0.91% for ERX and 0.09% for VDE.

Which has better risk-adjusted returns?

VDE currently has the higher Sharpe Ratio (1.83 vs 1.74), 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.