EUAD vs. DFEN

Last updated Jun 13, 2026

EUAD (Select STOXX Europe Aerospace & Defense ETF) and DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) are both exchange-traded funds - EUAD is a Aerospace & Defense fund tracking the STOXX Europe Total Market Aerospace & Defense Index, while DFEN is a Leveraged Equities fund tracking the Dow Jones U.S. Select Aerospace & Defense Index (300%). Both are passively managed. Over the past year, EUAD returned 2.75% vs 76.99% for DFEN. A 0.52 correlation means they provide meaningful diversification when combined. EUAD charges 0.50%/yr vs 0.99%/yr for DFEN.

Performance

EUAD vs. DFEN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Select STOXX Europe Aerospace & Defense ETF (EUAD) and Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EUAD achieves a -2.37% return, which is significantly lower than DFEN's 13.12% return.

EUAD

• 1D: -0.77%
• 1M: 4.47%
• YTD: -2.37%
• 6M: -0.54%
• 1Y: 2.75%
• 3Y*: —
• 5Y*: —
• 10Y*: —

DFEN

• 1D: -2.71%
• 1M: 7.74%
• YTD: 13.12%
• 6M: 20.44%
• 1Y: 76.99%
• 3Y*: 64.38%
• 5Y*: 29.22%
• 10Y*: —

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

EUAD vs. DFEN - Yearly Performance Comparison

	2026 (YTD)	2025	2024
EUAD Select STOXX Europe Aerospace & Defense ETF	-2.37%	74.51%	-6.86%
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	13.12%	156.62%	-22.18%

Correlation

The correlation between EUAD and DFEN is 0.58, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.58
Correlation (All Time) Calculated using the full available price history since Oct 22, 2024	0.52

The correlation between EUAD and DFEN has been stable across timeframes, ranging from 0.52 to 0.58 - a consistent structural relationship.

EUAD vs. DFEN - Sectors Allocation Comparison

Sectors	EUAD	DFEN
Industrials	99.4%	19.7%
Healthcare	0.1%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Real Estate	-	-
Technology	-	0.0%
Utilities	-	-

Return for Risk

EUAD vs. DFEN — Risk / Return Rank

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

EUAD

EUAD Risk / Return Rank: 11
EUAD Sharpe Ratio Rank: 11
EUAD Sortino Ratio Rank: 11
EUAD Omega Ratio Rank: 11
EUAD Calmar Ratio Rank: 11
EUAD Martin Ratio Rank: 11

DFEN

DFEN Risk / Return Rank: 38
DFEN Sharpe Ratio Rank: 37
DFEN Sortino Ratio Rank: 40
DFEN Omega Ratio Rank: 36
DFEN Calmar Ratio Rank: 42
DFEN Martin Ratio Rank: 33

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.

EUAD vs. DFEN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Select STOXX Europe Aerospace & Defense ETF (EUAD) and Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN). 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.

	EUAD	DFEN	Difference
Sharpe ratio: Return per unit of total volatility	0.09	1.18	-1.08
Sortino ratio: Return per unit of downside risk	0.35	1.85	-1.50
Omega ratio: Gain probability vs. loss probability	1.04	1.22	-0.18
Calmar ratio: Return relative to maximum drawdown	0.13	1.85	-1.73
Martin ratio: Return relative to average drawdown	0.30	4.29	-4.00

EUAD vs. DFEN - Sharpe Ratio Comparison

The current EUAD Sharpe Ratio is 0.09, which is lower than the DFEN Sharpe Ratio of 1.18. The chart below compares the historical Sharpe Ratios of EUAD and DFEN, 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

EUAD vs. DFEN - Drawdown Comparison

The maximum EUAD drawdown since its inception was -22.04%, smaller than the maximum DFEN drawdown of -91.36%. Use the drawdown chart below to compare losses from any high point for EUAD and DFEN.

Drawdown Indicators

	EUAD	DFEN	Difference
Max Drawdown Largest peak-to-trough decline	-22.04%	-91.36%	+69.32%
Max Drawdown (1Y) Largest decline over 1 year	-22.04%	-41.75%	+19.71%
Max Drawdown (3Y) Largest decline over 3 years	—	-43.13%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-55.30%	—
Current Drawdown Current decline from peak	-14.81%	-25.87%	+11.06%
Average Drawdown Average peak-to-trough decline	-5.88%	-45.20%	+39.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	9.34%	17.99%	-8.65%

Volatility

EUAD vs. DFEN - Volatility Comparison

The current volatility for Select STOXX Europe Aerospace & Defense ETF (EUAD) is 9.65%, while Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) has a volatility of 27.31%. This indicates that EUAD experiences smaller price fluctuations and is considered to be less risky than DFEN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EUAD	DFEN	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.65%	27.31%	-17.66%
Volatility (6M) Calculated over the trailing 6-month period	24.40%	55.81%	-31.41%
Volatility (1Y) Calculated over the trailing 1-year period	29.15%	65.81%	-36.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.90%	60.74%	-30.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.90%	71.66%	-41.76%

EUAD vs. DFEN - Expense Ratio Comparison

EUAD has a 0.50% expense ratio, which is lower than DFEN's 0.99% expense ratio.

Dividends

EUAD vs. DFEN - Dividend Comparison

EUAD's dividend yield for the trailing twelve months is around 0.41%, less than DFEN's 7.89% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	7.89%	8.89%	14.12%	1.13%	0.46%	1.89%	0.48%	0.50%	1.07%	1.50%
EUAD Select STOXX Europe Aerospace & Defense ETF	0.41%	0.40%	0.10%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both EUAD and DFEN in my portfolio?

EUAD and DFEN have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EUAD or DFEN?

DFEN has higher volatility (27.31%) compared to EUAD (9.65%). In terms of maximum drawdown, EUAD dropped -22.04% vs DFEN's -91.36%.

Which ETF is better, EUAD or DFEN?

On 1-year performance, DFEN leads with 76.99% vs 2.75% for EUAD. On fees, EUAD is cheaper at 0.50% per year. On volatility, EUAD has been the lower-risk option at 9.65%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EUAD or DFEN?

Over the 1-year period, DFEN has performed better with a 76.99% return vs 2.75%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EUAD or DFEN?

EUAD is cheaper with a 0.50% expense ratio, compared with 0.99% for DFEN.

Which ETF pays a higher dividend yield, EUAD or DFEN?

DFEN has the higher dividend yield at 7.89%, compared with 0.41% for EUAD.

What is the main difference between EUAD and DFEN?

EUAD is categorized as Aerospace & Defense, while DFEN is Leveraged Equities. EUAD tracks STOXX Europe Total Market Aerospace & Defense Index, while DFEN tracks Dow Jones U.S. Select Aerospace & Defense Index (300%). They also come from different issuers: Select Funds and Direxion. Their fees differ too: 0.50% for EUAD and 0.99% for DFEN.

Which has better risk-adjusted returns?

DFEN currently has the higher Sharpe Ratio (1.18 vs 0.09), 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.