KLAG vs. BABU

Last updated Jun 5, 2026

KLAG (Leverage Shares 2X Long KLAC Daily ETF) and BABU (Direxion Daily BABA Bull 2X ETF) are both Leveraged Equities funds - KLAG tracks the KLA Corporation (KLAC) while BABU tracks the Alibaba Group Holding Limited (BABA). Both are passively managed. At a 0.39 correlation, their price movements are largely independent. KLAG charges 0.75%/yr vs 0.97%/yr for BABU.

Performance

KLAG vs. BABU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Leverage Shares 2X Long KLAC Daily ETF (KLAG) and Direxion Daily BABA Bull 2X ETF (BABU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

KLAG

• 1D: 0.41%
• 1M: 47.07%
• YTD: 156.16%
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

BABU

• 1D: -2.22%
• 1M: -11.71%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

KLAG vs. BABU - Yearly Performance Comparison

	2026 (YTD)
KLAG Leverage Shares 2X Long KLAC Daily ETF	87.04%
BABU Direxion Daily BABA Bull 2X ETF	-46.06%

Correlation

The correlation between KLAG and BABU is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Feb 12, 2026	0.39

Return for Risk

KLAG vs. BABU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Leverage Shares 2X Long KLAC Daily ETF (KLAG) and Direxion Daily BABA Bull 2X ETF (BABU). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	KLAG	BABU	Difference
Sharpe Ratio (All Time) Calculated using the full available price history	6.15	-1.06	+7.22

Drawdowns

KLAG vs. BABU - Drawdown Comparison

The maximum KLAG drawdown since its inception was -42.37%, smaller than the maximum BABU drawdown of -49.17%. Use the drawdown chart below to compare losses from any high point for KLAG and BABU.

Drawdown Indicators

	KLAG	BABU	Difference
Max Drawdown Largest peak-to-trough decline	-42.37%	-49.17%	+6.80%
Current Drawdown Current decline from peak	0.00%	-46.06%	+46.06%
Average Drawdown Average peak-to-trough decline	-15.46%	-35.19%	+19.73%

Volatility

Volatility by Period

	KLAG	BABU	Difference
Volatility (1Y) Calculated over the trailing 1-year period	108.73%	81.73%	+27.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	108.73%	81.73%	+27.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	108.73%	81.73%	+27.00%

KLAG vs. BABU - Expense Ratio Comparison

KLAG has a 0.75% expense ratio, which is lower than BABU's 0.97% expense ratio.

Dividends

KLAG vs. BABU - Dividend Comparison

KLAG has not paid dividends to shareholders, while BABU's dividend yield for the trailing twelve months is around 0.37%.

Position	TTM
BABU Direxion Daily BABA Bull 2X ETF	0.37%
KLAG Leverage Shares 2X Long KLAC Daily ETF	0.00%

Frequently Asked Questions

Can I hold both KLAG and BABU in my portfolio?

KLAG and BABU have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, KLAG or BABU?

On fees, KLAG is cheaper at 0.75% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, KLAG or BABU?

KLAG is cheaper with a 0.75% expense ratio, compared with 0.97% for BABU.

Which ETF pays a higher dividend yield, KLAG or BABU?

BABU has the higher dividend yield at 0.37%, compared with 0.00% for KLAG.

What is the main difference between KLAG and BABU?

KLAG tracks KLA Corporation (KLAC), while BABU tracks Alibaba Group Holding Limited (BABA). They also come from different issuers: Leverage Shares and Direxion. Their fees differ too: 0.75% for KLAG and 0.97% for BABU.