KDEF vs. DFEN

Last updated Jun 4, 2026

KDEF (PLUS Korea Defense Industry Index ETF) and DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) are both exchange-traded funds - KDEF is a Aerospace & Defense fund tracking the The Korea Defence Industry 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, KDEF returned 40.06% vs 59.57% for DFEN. At a 0.30 correlation, their price movements are largely independent. KDEF charges 0.65%/yr vs 0.99%/yr for DFEN.

Performance

KDEF vs. DFEN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PLUS Korea Defense Industry Index ETF (KDEF) 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, KDEF achieves a 6.06% return, which is significantly higher than DFEN's 2.17% return.

KDEF

• 1D: -2.40%
• 1M: -26.87%
• YTD: 6.06%
• 6M: 18.05%
• 1Y: 40.06%
• 3Y*: —
• 5Y*: —
• 10Y*: —

DFEN

• 1D: -4.54%
• 1M: 12.97%
• YTD: 2.17%
• 6M: 21.41%
• 1Y: 59.57%
• 3Y*: 63.19%
• 5Y*: 26.54%
• 10Y*: —

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

KDEF vs. DFEN - Yearly Performance Comparison

	2026 (YTD)	2025
KDEF PLUS Korea Defense Industry Index ETF	6.06%	117.16%
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	2.17%	106.30%

Correlation

The correlation between KDEF and DFEN is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.34
Correlation (All Time) Calculated using the full available price history since Feb 6, 2025	0.30

KDEF vs. DFEN - Sectors Allocation Comparison

Sectors	KDEF	DFEN
Industrials	84.9%	19.7%
Consumer Cyclical	5.8%	-
Technology	3.1%	0.0%
Healthcare	2.4%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

KDEF vs. DFEN — Risk / Return Rank

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

KDEF

KDEF Risk / Return Rank: 26
KDEF Sharpe Ratio Rank: 25
KDEF Sortino Ratio Rank: 25
KDEF Omega Ratio Rank: 25
KDEF Calmar Ratio Rank: 28
KDEF Martin Ratio Rank: 29

DFEN

DFEN Risk / Return Rank: 27
DFEN Sharpe Ratio Rank: 26
DFEN Sortino Ratio Rank: 29
DFEN Omega Ratio Rank: 27
DFEN Calmar Ratio Rank: 29
DFEN Martin Ratio Rank: 25

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.

KDEF vs. DFEN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PLUS Korea Defense Industry Index ETF (KDEF) 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.

	KDEF	DFEN	Difference
Sharpe ratio: Return per unit of total volatility	0.90	0.95	-0.05
Sortino ratio: Return per unit of downside risk	1.42	1.59	-0.17
Omega ratio: Gain probability vs. loss probability	1.17	1.19	-0.02
Calmar ratio: Return relative to maximum drawdown	1.37	1.43	-0.07
Martin ratio: Return relative to average drawdown	4.15	3.44	+0.71
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

KDEF vs. DFEN - Sharpe Ratio Comparison

The current KDEF Sharpe Ratio is 0.90, which is comparable to the DFEN Sharpe Ratio of 0.95. The chart below compares the historical Sharpe Ratios of KDEF 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.

Sharpe Ratios by Period

	KDEF	DFEN	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.90	0.95	-0.05
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.44	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.90	0.21	+1.69

Drawdowns

KDEF vs. DFEN - Drawdown Comparison

The maximum KDEF drawdown since its inception was -29.45%, smaller than the maximum DFEN drawdown of -91.36%. Use the drawdown chart below to compare losses from any high point for KDEF and DFEN.

Drawdown Indicators

	KDEF	DFEN	Difference
Max Drawdown Largest peak-to-trough decline	-29.45%	-91.36%	+61.91%
Max Drawdown (1Y) Largest decline over 1 year	-29.45%	-41.75%	+12.30%
Max Drawdown (3Y) Largest decline over 3 years	—	-43.13%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-56.23%	—
Current Drawdown Current decline from peak	-29.45%	-33.04%	+3.59%
Average Drawdown Average peak-to-trough decline	-6.45%	-45.27%	+38.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	9.69%	17.36%	-7.67%

Volatility

KDEF vs. DFEN - Volatility Comparison

The current volatility for PLUS Korea Defense Industry Index ETF (KDEF) is 15.76%, while Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) has a volatility of 22.35%. This indicates that KDEF 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

	KDEF	DFEN	Difference
Volatility (1M) Calculated over the trailing 1-month period	15.76%	22.35%	-6.59%
Volatility (6M) Calculated over the trailing 6-month period	36.50%	53.06%	-16.56%
Volatility (1Y) Calculated over the trailing 1-year period	44.63%	63.21%	-18.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	46.54%	60.16%	-13.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	46.54%	71.48%	-24.94%

KDEF vs. DFEN - Expense Ratio Comparison

KDEF has a 0.65% expense ratio, which is lower than DFEN's 0.99% expense ratio.

Dividends

KDEF vs. DFEN - Dividend Comparison

KDEF's dividend yield for the trailing twelve months is around 6.48%, less than DFEN's 8.74% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	8.74%	8.89%	14.12%	1.13%	0.46%	1.89%	0.48%	0.50%	1.07%	1.50%
KDEF PLUS Korea Defense Industry Index ETF	6.48%	5.06%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both KDEF and DFEN in my portfolio?

KDEF and DFEN have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KDEF or DFEN?

DFEN has higher volatility (22.35%) compared to KDEF (15.76%). In terms of maximum drawdown, KDEF dropped -29.45% vs DFEN's -91.36%.

Which ETF is better, KDEF or DFEN?

On 1-year performance, DFEN leads with 59.57% vs 40.06% for KDEF. On fees, KDEF is cheaper at 0.65% per year. On volatility, KDEF has been the lower-risk option at 15.76%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KDEF or DFEN?

Over the 1-year period, DFEN has performed better with a 59.57% return vs 40.06%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KDEF or DFEN?

KDEF is cheaper with a 0.65% expense ratio, compared with 0.99% for DFEN.

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

DFEN has the higher dividend yield at 8.74%, compared with 6.48% for KDEF.

What is the main difference between KDEF and DFEN?

KDEF is categorized as Aerospace & Defense, while DFEN is Leveraged Equities. KDEF tracks The Korea Defence Industry Index, while DFEN tracks Dow Jones U.S. Select Aerospace & Defense Index (300%). They also come from different issuers: PLUS and Direxion. Their fees differ too: 0.65% for KDEF and 0.99% for DFEN.

Which has better risk-adjusted returns?

DFEN currently has the higher Sharpe Ratio (0.95 vs 0.90), 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.