NAIL vs. LGIH

Last updated Jun 24, 2026

NAIL (Direxion Daily Homebuilders & Supplies Bull 3X Shares) is Leveraged Equities fund tracking the Dow Jones U.S. Select Home Construction Index (300%), while LGIH (LGI Homes, Inc.) is a stock. Over the past 10 years, NAIL returned 6.00%/yr vs 6.42%/yr for LGIH. A 0.74 correlation means they provide meaningful diversification when combined.

Performance

NAIL vs. LGIH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL) and LGI Homes, Inc. (LGIH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NAIL achieves a -12.96% return, which is significantly lower than LGIH's 30.49% return. Over the past 10 years, NAIL has underperformed LGIH with an annualized return of 6.00%, while LGIH has yielded a comparatively higher 6.42% annualized return.

NAIL

• 1D: -0.37%
• 1M: 19.42%
• YTD: -12.96%
• 6M: -15.45%
• 1Y: -16.71%
• 3Y*: -13.68%
• 5Y*: -9.79%
• 10Y*: 6.00%

LGIH

• 1D: 1.65%
• 1M: 21.58%
• YTD: 30.49%
• 6M: 32.15%
• 1Y: 13.28%
• 3Y*: -24.21%
• 5Y*: -18.36%
• 10Y*: 6.42%

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

NAIL vs. LGIH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NAIL Direxion Daily Homebuilders & Supplies Bull 3X Shares	-12.96%	-40.43%	-22.83%	259.61%	-75.23%	168.20%	-32.08%	184.63%	-73.96%	268.71%
LGIH LGI Homes, Inc.	30.49%	-51.95%	-32.86%	43.80%	-40.06%	45.94%	49.82%	56.24%	-39.73%	161.16%

Correlation

The correlation between NAIL and LGIH is 0.78, 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	0.78
Correlation (3Y) Calculated over the trailing 3-year period	0.81
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.77
Correlation (All Time) Calculated using the full available price history since Aug 19, 2015	0.74

The correlation between NAIL and LGIH has been stable across timeframes, ranging from 0.74 to 0.83 - a consistent structural relationship.

Return for Risk

NAIL vs. LGIH — Risk / Return Rank

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

NAIL

NAIL Risk / Return Rank: 8
NAIL Sharpe Ratio Rank: 7
NAIL Sortino Ratio Rank: 10
NAIL Omega Ratio Rank: 10
NAIL Calmar Ratio Rank: 7
NAIL Martin Ratio Rank: 7

LGIH

LGIH Risk / Return Rank: 50
LGIH Sharpe Ratio Rank: 51
LGIH Sortino Ratio Rank: 52
LGIH Omega Ratio Rank: 48
LGIH Calmar Ratio Rank: 49
LGIH Martin Ratio Rank: 48

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.

NAIL vs. LGIH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL) and LGI Homes, Inc. (LGIH). 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.

	NAIL	LGIH	Difference
Sharpe ratio: Return per unit of total volatility	-0.19	0.22	-0.41
Sortino ratio: Return per unit of downside risk	0.36	0.85	-0.49
Omega ratio: Gain probability vs. loss probability	1.04	1.09	-0.05
Calmar ratio: Return relative to maximum drawdown	-0.25	0.27	-0.52
Martin ratio: Return relative to average drawdown	-0.42	0.50	-0.91

NAIL vs. LGIH - Sharpe Ratio Comparison

The current NAIL Sharpe Ratio is -0.19, which is lower than the LGIH Sharpe Ratio of 0.22. The chart below compares the historical Sharpe Ratios of NAIL and LGIH, 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

NAIL vs. LGIH - Drawdown Comparison

The maximum NAIL drawdown since its inception was -93.75%, which is greater than LGIH's maximum drawdown of -81.33%. Use the drawdown chart below to compare losses from any high point for NAIL and LGIH.

Drawdown Indicators

	NAIL	LGIH	Difference
Max Drawdown Largest peak-to-trough decline	-93.75%	-81.33%	-12.42%
Max Drawdown (1Y) Largest decline over 1 year	-67.85%	-49.25%	-18.60%
Max Drawdown (3Y) Largest decline over 3 years	-82.09%	-75.68%	-6.41%
Max Drawdown (5Y) Largest decline over 5 years	-84.40%	-80.24%	-4.16%
Max Drawdown (10Y) Largest decline over 10 years	-93.75%	-81.33%	-12.42%
Current Drawdown Current decline from peak	-75.13%	-69.43%	-5.70%
Average Drawdown Average peak-to-trough decline	-43.93%	-28.18%	-15.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	40.23%	26.73%	+13.50%

Volatility

NAIL vs. LGIH - Volatility Comparison

Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL) has a higher volatility of 24.70% compared to LGI Homes, Inc. (LGIH) at 16.29%. This indicates that NAIL's price experiences larger fluctuations and is considered to be riskier than LGIH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NAIL	LGIH	Difference
Volatility (1M) Calculated over the trailing 1-month period	24.70%	16.29%	+8.41%
Volatility (6M) Calculated over the trailing 6-month period	63.33%	42.53%	+20.80%
Volatility (1Y) Calculated over the trailing 1-year period	88.92%	60.82%	+28.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	87.48%	49.28%	+38.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	89.45%	50.64%	+38.81%

Dividends

NAIL vs. LGIH - Dividend Comparison

NAIL's dividend yield for the trailing twelve months is around 0.91%, while LGIH has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
LGIH LGI Homes, Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
NAIL Direxion Daily Homebuilders & Supplies Bull 3X Shares	0.91%	1.55%	0.63%	0.22%	0.00%	0.00%	0.01%	0.17%	0.35%	1.25%

Frequently Asked Questions

Can I hold both NAIL and LGIH in my portfolio?

NAIL and LGIH have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NAIL or LGIH?

NAIL has higher volatility (24.70%) compared to LGIH (16.29%). In terms of maximum drawdown, NAIL dropped -93.75% vs LGIH's -81.33%.

Which has better risk-adjusted returns?

LGIH currently has the higher Sharpe Ratio (0.22 vs -0.19), 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.