IWMI vs. DFEN

Last updated Jun 21, 2026

IWMI (NEOS Russell 2000 High Income ETF) and DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) are both exchange-traded funds - IWMI is a Derivative Income fund actively managed by Neos, while DFEN is a Leveraged Equities fund tracking the Dow Jones U.S. Select Aerospace & Defense Index (300% Daily). IWMI is actively managed, while DFEN is passively managed. Over the past year, IWMI returned 37.32% vs 87.39% for DFEN. A 0.59 correlation means they provide meaningful diversification when combined. IWMI charges 0.68%/yr vs 0.96%/yr for DFEN.

Performance

IWMI vs. DFEN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in NEOS Russell 2000 High Income ETF (IWMI) 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, IWMI achieves a 16.41% return, which is significantly lower than DFEN's 20.97% return.

IWMI

• 1D: 1.72%
• 1M: 3.75%
• YTD: 16.41%
• 6M: 14.83%
• 1Y: 37.32%
• 3Y*: —
• 5Y*: —
• 10Y*: —

DFEN

• 1D: -4.32%
• 1M: 17.09%
• YTD: 20.97%
• 6M: 21.25%
• 1Y: 87.39%
• 3Y*: 67.96%
• 5Y*: 33.49%
• 10Y*: —

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

IWMI vs. DFEN - Yearly Performance Comparison

	2026 (YTD)	2025	2024
IWMI NEOS Russell 2000 High Income ETF	16.41%	14.97%	6.58%
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	20.97%	156.62%	16.08%

Correlation

The correlation between IWMI and DFEN is 0.57, 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	0.57
Correlation (All Time) Calculated using the full available price history since Jun 25, 2024	0.59

The correlation between IWMI and DFEN has been stable across timeframes, ranging from 0.57 to 0.59 - a consistent structural relationship.

IWMI vs. DFEN - Sectors Allocation Comparison

Sectors	IWMI	DFEN
Industrials	17.7%	18.7%
Technology	17.0%	0.0%
Healthcare	16.5%	-
Financial Services	15.7%	-
Consumer Cyclical	8.4%	-
Real Estate	6.1%	-
Energy	6.1%	-
Basic Materials	4.8%	-
Utilities	2.9%	-
Communication Services	2.4%	-
Consumer Defensive	2.4%	-

Return for Risk

IWMI vs. DFEN — Risk / Return Rank

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

IWMI

IWMI Risk / Return Rank: 82
IWMI Sharpe Ratio Rank: 80
IWMI Sortino Ratio Rank: 80
IWMI Omega Ratio Rank: 76
IWMI Calmar Ratio Rank: 85
IWMI Martin Ratio Rank: 88

DFEN

DFEN Risk / Return Rank: 40
DFEN Sharpe Ratio Rank: 41
DFEN Sortino Ratio Rank: 42
DFEN Omega Ratio Rank: 37
DFEN Calmar Ratio Rank: 46
DFEN Martin Ratio Rank: 36

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.

IWMI vs. DFEN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for NEOS Russell 2000 High Income ETF (IWMI) 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.

	IWMI	DFEN	Difference
Sharpe ratio: Return per unit of total volatility	2.42	1.40	+1.02
Sortino ratio: Return per unit of downside risk	3.33	2.04	+1.28
Omega ratio: Gain probability vs. loss probability	1.42	1.24	+0.18
Calmar ratio: Return relative to maximum drawdown	4.43	2.21	+2.21
Martin ratio: Return relative to average drawdown	18.24	5.08	+13.17

IWMI vs. DFEN - Sharpe Ratio Comparison

The current IWMI Sharpe Ratio is 2.42, which is higher than the DFEN Sharpe Ratio of 1.40. The chart below compares the historical Sharpe Ratios of IWMI 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

IWMI vs. DFEN - Drawdown Comparison

The maximum IWMI drawdown since its inception was -23.88%, smaller than the maximum DFEN drawdown of -91.36%. Use the drawdown chart below to compare losses from any high point for IWMI and DFEN.

Drawdown Indicators

	IWMI	DFEN	Difference
Max Drawdown Largest peak-to-trough decline	-23.88%	-91.36%	+67.48%
Max Drawdown (1Y) Largest decline over 1 year	-8.40%	-41.75%	+33.35%
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	0.00%	-20.73%	+20.73%
Average Drawdown Average peak-to-trough decline	-4.04%	-45.15%	+41.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.03%	18.16%	-16.13%

Volatility

IWMI vs. DFEN - Volatility Comparison

The current volatility for NEOS Russell 2000 High Income ETF (IWMI) is 5.41%, while Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) has a volatility of 25.14%. This indicates that IWMI 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

	IWMI	DFEN	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.41%	25.14%	-19.73%
Volatility (6M) Calculated over the trailing 6-month period	11.46%	56.03%	-44.57%
Volatility (1Y) Calculated over the trailing 1-year period	15.38%	66.17%	-50.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.97%	60.80%	-42.83%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.97%	71.64%	-53.67%

IWMI vs. DFEN - Expense Ratio Comparison

IWMI has a 0.68% expense ratio, which is lower than DFEN's 0.96% expense ratio.

Dividends

IWMI vs. DFEN - Dividend Comparison

IWMI's dividend yield for the trailing twelve months is around 14.51%, more than DFEN's 7.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	7.38%	8.89%	14.12%	1.13%	0.46%	1.89%	0.48%	0.50%	1.07%	1.50%
IWMI NEOS Russell 2000 High Income ETF	14.51%	14.05%	8.78%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IWMI and DFEN in my portfolio?

IWMI and DFEN have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IWMI or DFEN?

DFEN has higher volatility (25.14%) compared to IWMI (5.41%). In terms of maximum drawdown, IWMI dropped -23.88% vs DFEN's -91.36%.

Which ETF is better, IWMI or DFEN?

On 1-year performance, DFEN leads with 87.39% vs 37.32% for IWMI. On fees, IWMI is cheaper at 0.68% per year. On volatility, IWMI has been the lower-risk option at 5.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IWMI or DFEN?

Over the 1-year period, DFEN has performed better with a 87.39% return vs 37.32%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IWMI or DFEN?

IWMI is cheaper with a 0.68% expense ratio, compared with 0.96% for DFEN.

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

IWMI has the higher dividend yield at 14.51%, compared with 7.38% for DFEN.

What is the main difference between IWMI and DFEN?

IWMI is categorized as Derivative Income, while DFEN is Leveraged Equities. They also come from different issuers: Neos and Direxion. Their fees differ too: 0.68% for IWMI and 0.96% for DFEN.

Which has better risk-adjusted returns?

IWMI currently has the higher Sharpe Ratio (2.42 vs 1.40), 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.