SEF vs. DFNL

Last updated Aug 2, 2026

SEF (ProShares Short Financials) and DFNL (Davis Select Financial ETF) are both exchange-traded funds - SEF is a Inverse Equities fund tracking the Dow Jones U.S. Financials Index (-100%), while DFNL is a Financials Equities fund actively managed by Davis. SEF is passively managed, while DFNL is actively managed. Over the past 5 years, SEF returned -7.41%/yr vs 14.05%/yr for DFNL. Their -0.91 correlation means they have often moved in opposite directions in the past. SEF charges 0.95%/yr vs 0.64%/yr for DFNL.

Performance

SEF vs. DFNL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares Short Financials (SEF) and Davis Select Financial ETF (DFNL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SEF achieves a -2.43% return, which is significantly lower than DFNL's 6.12% return.

SEF

• 1D: 0.04%
• 1M: -2.18%
• 6M: -5.14%
• YTD: -2.43%
• 1Y: -7.05%
• 3Y*: -11.58%
• 5Y*: -7.41%
• 10Y*: -12.37%
• ALL TIME*: -13.88%

DFNL

• 1D: 0.18%
• 1M: 1.36%
• 6M: 6.88%
• YTD: 6.12%
• 1Y: 22.75%
• 3Y*: 23.47%
• 5Y*: 14.05%
• 10Y*: —
• ALL TIME*: 12.61%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
DFNL Davis Select Financial ETF	$3.69M	$3.03M	$2.46M
SEF ProShares Short Financials	$302.73K	$217.23K	$276.76K

SEF vs. DFNL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SEF ProShares Short Financials	-2.43%	-9.82%	-17.81%	-8.81%	11.85%	-27.02%	-16.93%	-23.51%	10.34%	-16.10%
DFNL Davis Select Financial ETF	6.12%	28.59%	28.56%	14.45%	-8.45%	31.25%	-4.97%	27.37%	-11.59%	20.34%

Correlation

The correlation between SEF and DFNL is -0.88, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.88
Correlation (3Y) Balances recent behavior with more history.	-0.90
Correlation (5Y) Shows whether the relationship held over a longer period.	-0.92
Correlation (All Time) Calculated using the full available price history since Jan 12, 2017	-0.91

The correlation between SEF and DFNL has been stable across timeframes, ranging from -0.92 to -0.88 - a consistent structural relationship.

SEF vs. DFNL - Sectors Allocation Comparison

Sectors	SEF	DFNL
Financial Services	75.3%	93.7%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	0.9%
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	2.4%
Real Estate	-	-
Technology	-	3.0%
Utilities	-	-

Return for Risk

SEF vs. DFNL — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

SEF

SEF Risk / Return Rank: 6
SEF Sharpe Ratio Rank: 6
SEF Sortino Ratio Rank: 6
SEF Omega Ratio Rank: 6
SEF Calmar Ratio Rank: 6
SEF Martin Ratio Rank: 5

DFNL

DFNL Risk / Return Rank: 52
DFNL Sharpe Ratio Rank: 60
DFNL Sortino Ratio Rank: 58
DFNL Omega Ratio Rank: 56
DFNL Calmar Ratio Rank: 45
DFNL Martin Ratio Rank: 43

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

SEF vs. DFNL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares Short Financials (SEF) and Davis Select Financial ETF (DFNL). 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.

	SEF	DFNL	Difference
Sharpe ratio: Return per unit of total volatility	-0.37	1.42	-1.79
Sortino ratio: Return per unit of downside risk	-0.45	2.00	-2.45
Omega ratio: Gain probability vs. loss probability	0.95	1.25	-0.30
Calmar ratio: Return relative to maximum drawdown	-0.34	1.63	-1.97
Martin ratio: Return relative to average drawdown	-0.84	4.62	-5.47

SEF vs. DFNL - Sharpe Ratio Comparison

The current SEF Sharpe Ratio is -0.37, which is lower than the DFNL Sharpe Ratio of 1.42. The chart below compares the historical Sharpe Ratios of SEF and DFNL, 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

SEF vs. DFNL - Drawdown Comparison

The maximum SEF drawdown since its inception was -96.53%, which is greater than DFNL's maximum drawdown of -44.51%. Use the drawdown chart below to compare losses from any high point for SEF and DFNL.

Drawdown Indicators

	SEF	DFNL	Difference
Max Drawdown Largest peak-to-trough decline	-96.53%	-44.51%	-52.02%
Max Drawdown (1Y) Largest decline over 1 year	-15.98%	-12.94%	-3.04%
Max Drawdown (3Y) Largest decline over 3 years	-39.77%	-16.05%	-23.72%
Max Drawdown (5Y) Largest decline over 5 years	-41.98%	-26.27%	-15.71%
Max Drawdown (10Y) Largest decline over 10 years	-73.23%	—	—
Current Drawdown Current decline from peak	-96.50%	-1.33%	-95.17%
Average Drawdown Average peak-to-trough decline	-82.82%	-7.57%	-75.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.40%	4.55%	+1.85%

Volatility

SEF vs. DFNL - Volatility Comparison

ProShares Short Financials (SEF) and Davis Select Financial ETF (DFNL) have volatilities of 4.01% and 4.10%, 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

	SEF	DFNL	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.01%	4.10%	-0.09%
Volatility (6M) Calculated over the trailing 6-month period	11.02%	11.47%	-0.45%
Volatility (1Y) Calculated over the trailing 1-year period	14.64%	14.86%	-0.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.91%	19.12%	-1.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.46%	22.50%	-2.04%

SEF vs. DFNL - Expense Ratio Comparison

SEF has a 0.95% expense ratio, which is higher than DFNL's 0.64% expense ratio.

Dividends

SEF vs. DFNL - Dividend Comparison

SEF's dividend yield for the trailing twelve months is around 3.44%, more than DFNL's 1.29% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFNL Davis Select Financial ETF	1.29%	1.37%	2.19%	2.33%	3.34%	2.45%	1.45%	2.52%	3.12%	1.10%
SEF ProShares Short Financials	3.44%	4.33%	5.72%	4.43%	0.39%	0.00%	0.12%	1.25%	0.41%	0.00%

Frequently Asked Questions

Can I hold both SEF and DFNL in my portfolio?

SEF and DFNL have a correlation of -0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SEF or DFNL?

DFNL has higher volatility (4.10%) compared to SEF (4.01%). In terms of maximum drawdown, SEF dropped -96.53% vs DFNL's -44.51%.

Which ETF is better, SEF or DFNL?

On 5-year performance, DFNL leads with 14.05% vs -7.41% for SEF. On fees, DFNL is cheaper at 0.64% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SEF or DFNL?

Over the 5-year period, DFNL has performed better with a 14.05% return vs -7.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SEF or DFNL?

DFNL is cheaper with a 0.64% expense ratio, compared with 0.95% for SEF.

Which ETF pays a higher dividend yield, SEF or DFNL?

SEF has the higher dividend yield at 3.44%, compared with 1.29% for DFNL.

What is the main difference between SEF and DFNL?

SEF is categorized as Inverse Equities, while DFNL is Financials Equities. They also come from different issuers: ProShares and Davis. Their fees differ too: 0.95% for SEF and 0.64% for DFNL.

Which has better risk-adjusted returns?

DFNL currently has the higher Sharpe Ratio (1.42 vs -0.37), 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.