MPWR vs. DFEN

Last updated Jun 13, 2026

MPWR (Monolithic Power Systems, Inc.) is a stock, while DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) is Leveraged Equities fund tracking the Dow Jones U.S. Select Aerospace & Defense Index (300%). Over the past 5 years, MPWR returned 36.35%/yr vs 29.22%/yr for DFEN. At a 0.40 correlation, their price movements are largely independent.

Performance

MPWR vs. DFEN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Monolithic Power Systems, Inc. (MPWR) 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, MPWR achieves a 74.38% return, which is significantly higher than DFEN's 13.12% return.

MPWR

• 1D: -0.77%
• 1M: -4.43%
• YTD: 74.38%
• 6M: 67.26%
• 1Y: 121.18%
• 3Y*: 44.43%
• 5Y*: 36.35%
• 10Y*: 37.94%

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)

MPWR vs. DFEN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MPWR Monolithic Power Systems, Inc.	74.38%	54.45%	-5.55%	79.78%	-27.78%	35.49%	107.49%	54.80%	4.49%	24.03%
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	13.12%	156.62%	27.07%	24.70%	6.99%	12.72%	-70.23%	95.09%	-32.86%	83.64%

Correlation

The correlation between MPWR 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 (3Y) Calculated over the trailing 3-year period	0.35
Correlation (5Y) Calculated over the trailing 5-year period	0.40
Correlation (All Time) Calculated using the full available price history since May 3, 2017	0.40

Return for Risk

MPWR vs. DFEN — Risk / Return Rank

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

MPWR

MPWR Risk / Return Rank: 91
MPWR Sharpe Ratio Rank: 93
MPWR Sortino Ratio Rank: 90
MPWR Omega Ratio Rank: 88
MPWR Calmar Ratio Rank: 93
MPWR Martin Ratio Rank: 93

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.

MPWR vs. DFEN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Monolithic Power Systems, Inc. (MPWR) 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.

	MPWR	DFEN	Difference
Sharpe ratio: Return per unit of total volatility	2.51	1.18	+1.34
Sortino ratio: Return per unit of downside risk	3.00	1.85	+1.14
Omega ratio: Gain probability vs. loss probability	1.37	1.22	+0.15
Calmar ratio: Return relative to maximum drawdown	5.43	1.85	+3.58
Martin ratio: Return relative to average drawdown	14.45	4.29	+10.16

MPWR vs. DFEN - Sharpe Ratio Comparison

The current MPWR Sharpe Ratio is 2.51, which is higher than the DFEN Sharpe Ratio of 1.18. The chart below compares the historical Sharpe Ratios of MPWR 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

MPWR vs. DFEN - Drawdown Comparison

The maximum MPWR drawdown since its inception was -72.27%, smaller than the maximum DFEN drawdown of -91.36%. Use the drawdown chart below to compare losses from any high point for MPWR and DFEN.

Drawdown Indicators

	MPWR	DFEN	Difference
Max Drawdown Largest peak-to-trough decline	-72.27%	-91.36%	+19.09%
Max Drawdown (1Y) Largest decline over 1 year	-22.45%	-41.75%	+19.30%
Max Drawdown (3Y) Largest decline over 3 years	-51.65%	-43.13%	-8.52%
Max Drawdown (5Y) Largest decline over 5 years	-51.65%	-55.30%	+3.65%
Max Drawdown (10Y) Largest decline over 10 years	-51.65%	—	—
Current Drawdown Current decline from peak	-6.66%	-25.87%	+19.21%
Average Drawdown Average peak-to-trough decline	-17.71%	-45.20%	+27.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.44%	17.99%	-9.55%

Volatility

MPWR vs. DFEN - Volatility Comparison

The current volatility for Monolithic Power Systems, Inc. (MPWR) is 20.33%, while Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) has a volatility of 27.31%. This indicates that MPWR 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

	MPWR	DFEN	Difference
Volatility (1M) Calculated over the trailing 1-month period	20.33%	27.31%	-6.98%
Volatility (6M) Calculated over the trailing 6-month period	37.42%	55.81%	-18.39%
Volatility (1Y) Calculated over the trailing 1-year period	48.53%	65.81%	-17.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	53.53%	60.74%	-7.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	47.23%	71.66%	-24.43%

Dividends

MPWR vs. DFEN - Dividend Comparison

MPWR's dividend yield for the trailing twelve months is around 0.42%, less than DFEN's 7.89% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%	0.00%	0.00%
MPWR Monolithic Power Systems, Inc.	0.42%	0.69%	0.85%	0.63%	0.85%	0.49%	0.55%	0.90%	1.03%	0.71%	0.98%	1.26%

Frequently Asked Questions

Can I hold both MPWR and DFEN in my portfolio?

MPWR 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, MPWR or DFEN?

DFEN has higher volatility (27.31%) compared to MPWR (20.33%). In terms of maximum drawdown, MPWR dropped -72.27% vs DFEN's -91.36%.

Which has better risk-adjusted returns?

MPWR currently has the higher Sharpe Ratio (2.51 vs 1.18), 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.