QTUM vs. DFEN

Last updated Jun 13, 2026

QTUM (Defiance Quantum ETF) and DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) are both exchange-traded funds - QTUM is a Technology Equities fund tracking the BlueStar Machine Learning and Quantum Computing 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 5 years, QTUM returned 28.09%/yr vs 29.22%/yr for DFEN. A 0.55 correlation means they provide meaningful diversification when combined. QTUM charges 0.40%/yr vs 0.99%/yr for DFEN.

Performance

QTUM vs. DFEN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Defiance Quantum ETF (QTUM) 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, QTUM achieves a 47.39% return, which is significantly higher than DFEN's 13.12% return.

QTUM

• 1D: 1.22%
• 1M: 9.88%
• YTD: 47.39%
• 6M: 45.72%
• 1Y: 82.93%
• 3Y*: 48.15%
• 5Y*: 28.09%
• 10Y*: —

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)

QTUM vs. DFEN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
QTUM Defiance Quantum ETF	47.39%	36.65%	50.54%	39.86%	-28.80%	35.18%	42.05%	47.99%	-19.44%
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	13.12%	156.62%	27.07%	24.70%	6.99%	12.72%	-70.23%	95.09%	-45.49%

Correlation

The correlation between QTUM and DFEN is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.47
Correlation (3Y) Calculated over the trailing 3-year period	0.45
Correlation (5Y) Calculated over the trailing 5-year period	0.54
Correlation (All Time) Calculated using the full available price history since Sep 5, 2018	0.55

The correlation between QTUM and DFEN has been stable across timeframes, ranging from 0.45 to 0.55 - a consistent structural relationship.

QTUM vs. DFEN - Sectors Allocation Comparison

Sectors	QTUM	DFEN
Technology	85.1%	0.0%
Industrials	8.7%	19.7%
Communication Services	4.9%	-
Consumer Cyclical	0.7%	-
Healthcare	0.6%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

QTUM vs. DFEN — Risk / Return Rank

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

QTUM

QTUM Risk / Return Rank: 90
QTUM Sharpe Ratio Rank: 93
QTUM Sortino Ratio Rank: 87
QTUM Omega Ratio Rank: 87
QTUM Calmar Ratio Rank: 92
QTUM Martin Ratio Rank: 92

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.

QTUM vs. DFEN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Defiance Quantum ETF (QTUM) 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.

	QTUM	DFEN	Difference
Sharpe ratio: Return per unit of total volatility	2.94	1.18	+1.76
Sortino ratio: Return per unit of downside risk	3.45	1.85	+1.59
Omega ratio: Gain probability vs. loss probability	1.46	1.22	+0.25
Calmar ratio: Return relative to maximum drawdown	5.46	1.85	+3.61
Martin ratio: Return relative to average drawdown	19.77	4.29	+15.47

QTUM vs. DFEN - Sharpe Ratio Comparison

The current QTUM Sharpe Ratio is 2.94, which is higher than the DFEN Sharpe Ratio of 1.18. The chart below compares the historical Sharpe Ratios of QTUM 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

QTUM vs. DFEN - Drawdown Comparison

The maximum QTUM drawdown since its inception was -38.45%, smaller than the maximum DFEN drawdown of -91.36%. Use the drawdown chart below to compare losses from any high point for QTUM and DFEN.

Drawdown Indicators

	QTUM	DFEN	Difference
Max Drawdown Largest peak-to-trough decline	-38.45%	-91.36%	+52.91%
Max Drawdown (1Y) Largest decline over 1 year	-15.26%	-41.75%	+26.49%
Max Drawdown (3Y) Largest decline over 3 years	-25.39%	-43.13%	+17.74%
Max Drawdown (5Y) Largest decline over 5 years	-38.45%	-55.30%	+16.85%
Current Drawdown Current decline from peak	-4.42%	-25.87%	+21.45%
Average Drawdown Average peak-to-trough decline	-8.24%	-45.20%	+36.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.21%	17.99%	-13.78%

Volatility

QTUM vs. DFEN - Volatility Comparison

The current volatility for Defiance Quantum ETF (QTUM) is 14.18%, while Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) has a volatility of 27.31%. This indicates that QTUM 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

	QTUM	DFEN	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.18%	27.31%	-13.13%
Volatility (6M) Calculated over the trailing 6-month period	23.17%	55.81%	-32.64%
Volatility (1Y) Calculated over the trailing 1-year period	28.39%	65.81%	-37.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.99%	60.74%	-33.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.40%	71.66%	-44.26%

QTUM vs. DFEN - Expense Ratio Comparison

QTUM has a 0.40% expense ratio, which is lower than DFEN's 0.99% expense ratio.

Dividends

QTUM vs. DFEN - Dividend Comparison

QTUM's dividend yield for the trailing twelve months is around 0.73%, less than DFEN's 7.89% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
QTUM Defiance Quantum ETF	0.73%	1.01%	0.61%	0.81%	1.46%	0.48%	0.42%	0.61%	0.21%	0.00%

Frequently Asked Questions

Can I hold both QTUM and DFEN in my portfolio?

QTUM and DFEN have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QTUM or DFEN?

DFEN has higher volatility (27.31%) compared to QTUM (14.18%). In terms of maximum drawdown, QTUM dropped -38.45% vs DFEN's -91.36%.

Which ETF is better, QTUM or DFEN?

On 5-year performance, DFEN leads with 29.22% vs 28.09% for QTUM. On fees, QTUM is cheaper at 0.40% per year. On volatility, QTUM has been the lower-risk option at 14.18%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QTUM or DFEN?

Over the 5-year period, DFEN has performed better with a 29.22% return vs 28.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QTUM or DFEN?

QTUM is cheaper with a 0.40% expense ratio, compared with 0.99% for DFEN.

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

DFEN has the higher dividend yield at 7.89%, compared with 0.73% for QTUM.

What is the main difference between QTUM and DFEN?

QTUM is categorized as Technology Equities, while DFEN is Leveraged Equities. QTUM tracks BlueStar Machine Learning and Quantum Computing Index, while DFEN tracks Dow Jones U.S. Select Aerospace & Defense Index (300%). They also come from different issuers: Defiance and Direxion. Their fees differ too: 0.40% for QTUM and 0.99% for DFEN.

Which has better risk-adjusted returns?

QTUM currently has the higher Sharpe Ratio (2.94 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.