NVDU vs. DFEN

Last updated Jun 5, 2026

NVDU (Direxion Daily NVDA Bull 2X Shares ETF) and DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) are both Leveraged Equities funds from Direxion. NVDU is actively managed, while DFEN is passively managed. Over the past year, NVDU returned 90.38% vs 71.41% for DFEN. At a 0.28 correlation, their price movements are largely independent. NVDU charges 1.04%/yr vs 0.99%/yr for DFEN.

Performance

NVDU vs. DFEN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily NVDA Bull 2X Shares ETF (NVDU) 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, NVDU achieves a 24.68% return, which is significantly higher than DFEN's 11.16% return.

NVDU

• 1D: 3.97%
• 1M: 21.27%
• YTD: 24.68%
• 6M: 26.89%
• 1Y: 90.38%
• 3Y*: —
• 5Y*: —
• 10Y*: —

DFEN

• 1D: 8.80%
• 1M: 20.99%
• YTD: 11.16%
• 6M: 26.30%
• 1Y: 71.41%
• 3Y*: 69.28%
• 5Y*: 28.69%
• 10Y*: —

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

NVDU vs. DFEN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
NVDU Direxion Daily NVDA Bull 2X Shares ETF	24.68%	33.65%	289.29%	9.96%
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	11.16%	156.62%	27.07%	48.37%

Correlation

The correlation between NVDU and DFEN is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.31
Correlation (All Time) Calculated using the full available price history since Sep 14, 2023	0.28

NVDU vs. DFEN - Sectors Allocation Comparison

Sectors	NVDU	DFEN
Technology	100.0%	0.0%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	19.7%
Real Estate	-	-
Utilities	-	-

Return for Risk

NVDU vs. DFEN — Risk / Return Rank

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

NVDU

NVDU Risk / Return Rank: 38
NVDU Sharpe Ratio Rank: 39
NVDU Sortino Ratio Rank: 39
NVDU Omega Ratio Rank: 36
NVDU Calmar Ratio Rank: 44
NVDU Martin Ratio Rank: 33

DFEN

DFEN Risk / Return Rank: 33
DFEN Sharpe Ratio Rank: 32
DFEN Sortino Ratio Rank: 34
DFEN Omega Ratio Rank: 32
DFEN Calmar Ratio Rank: 36
DFEN Martin Ratio Rank: 29

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.

NVDU vs. DFEN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily NVDA Bull 2X Shares ETF (NVDU) 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.

	NVDU	DFEN	Difference
Sharpe ratio: Return per unit of total volatility	1.34	1.13	+0.21
Sortino ratio: Return per unit of downside risk	1.96	1.77	+0.19
Omega ratio: Gain probability vs. loss probability	1.23	1.21	+0.02
Calmar ratio: Return relative to maximum drawdown	2.15	1.72	+0.43
Martin ratio: Return relative to average drawdown	4.90	4.11	+0.80
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NVDU vs. DFEN - Sharpe Ratio Comparison

The current NVDU Sharpe Ratio is 1.34, which is comparable to the DFEN Sharpe Ratio of 1.13. The chart below compares the historical Sharpe Ratios of NVDU 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

	NVDU	DFEN	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.34	1.13	+0.21
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.48	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.17	0.23	+0.94

Drawdowns

NVDU vs. DFEN - Drawdown Comparison

The maximum NVDU drawdown since its inception was -67.27%, smaller than the maximum DFEN drawdown of -91.36%. Use the drawdown chart below to compare losses from any high point for NVDU and DFEN.

Drawdown Indicators

	NVDU	DFEN	Difference
Max Drawdown Largest peak-to-trough decline	-67.27%	-91.36%	+24.09%
Max Drawdown (1Y) Largest decline over 1 year	-42.27%	-41.75%	-0.52%
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	-15.08%	-27.15%	+12.07%
Average Drawdown Average peak-to-trough decline	-18.83%	-45.26%	+26.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	18.50%	17.45%	+1.05%

Volatility

NVDU vs. DFEN - Volatility Comparison

Direxion Daily NVDA Bull 2X Shares ETF (NVDU) and Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) have volatilities of 24.76% and 23.68%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NVDU	DFEN	Difference
Volatility (1M) Calculated over the trailing 1-month period	24.76%	23.68%	+1.08%
Volatility (6M) Calculated over the trailing 6-month period	50.62%	53.64%	-3.02%
Volatility (1Y) Calculated over the trailing 1-year period	67.91%	63.76%	+4.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	91.02%	60.27%	+30.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	91.02%	71.52%	+19.50%

NVDU vs. DFEN - Expense Ratio Comparison

NVDU has a 1.04% expense ratio, which is higher than DFEN's 0.99% expense ratio.

Dividends

NVDU vs. DFEN - Dividend Comparison

NVDU's dividend yield for the trailing twelve months is around 4.65%, less than DFEN's 8.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	8.03%	8.89%	14.12%	1.13%	0.46%	1.89%	0.48%	0.50%	1.07%	1.50%
NVDU Direxion Daily NVDA Bull 2X Shares ETF	4.65%	5.68%	16.85%	0.63%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both NVDU and DFEN in my portfolio?

NVDU and DFEN have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NVDU or DFEN?

NVDU has higher volatility (24.76%) compared to DFEN (23.68%). In terms of maximum drawdown, NVDU dropped -67.27% vs DFEN's -91.36%.

Which ETF is better, NVDU or DFEN?

On 1-year performance, NVDU leads with 90.38% vs 71.41% for DFEN. On fees, DFEN is cheaper at 0.99% per year. On volatility, DFEN has been the lower-risk option at 23.68%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, NVDU or DFEN?

Over the 1-year period, NVDU has performed better with a 90.38% return vs 71.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, NVDU or DFEN?

DFEN is cheaper with a 0.99% expense ratio, compared with 1.04% for NVDU.

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

DFEN has the higher dividend yield at 8.03%, compared with 4.65% for NVDU.

What is the main difference between NVDU and DFEN?

Their fees differ too: 1.04% for NVDU and 0.99% for DFEN.

Which has better risk-adjusted returns?

NVDU currently has the higher Sharpe Ratio (1.34 vs 1.13), 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.