SHLD vs. DFEN

Last updated Jun 13, 2026

SHLD (Global X Defense Tech ETF) and DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) are both exchange-traded funds - SHLD is a Aerospace & Defense fund tracking the Global X Defense Tech 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 year, SHLD returned 10.40% vs 76.99% for DFEN. A 0.71 correlation means they provide meaningful diversification when combined. SHLD charges 0.50%/yr vs 0.99%/yr for DFEN.

Performance

SHLD vs. DFEN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Global X Defense Tech ETF (SHLD) 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, SHLD achieves a -1.50% return, which is significantly lower than DFEN's 13.12% return.

SHLD

• 1D: -2.04%
• 1M: 0.05%
• YTD: -1.50%
• 6M: -1.03%
• 1Y: 10.40%
• 3Y*: —
• 5Y*: —
• 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)

SHLD vs. DFEN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
SHLD Global X Defense Tech ETF	-1.50%	74.16%	35.03%	12.89%
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	13.12%	156.62%	27.07%	46.70%

Correlation

The correlation between SHLD and DFEN is 0.74, 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	0.74
Correlation (All Time) Calculated using the full available price history since Sep 13, 2023	0.71

The correlation between SHLD and DFEN has been stable across timeframes, ranging from 0.71 to 0.74 - a consistent structural relationship.

SHLD vs. DFEN - Sectors Allocation Comparison

Sectors	SHLD	DFEN
Industrials	88.2%	19.7%
Technology	11.8%	0.0%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

SHLD vs. DFEN — Risk / Return Rank

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

SHLD

SHLD Risk / Return Rank: 16
SHLD Sharpe Ratio Rank: 17
SHLD Sortino Ratio Rank: 17
SHLD Omega Ratio Rank: 16
SHLD Calmar Ratio Rank: 16
SHLD Martin Ratio Rank: 16

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.

SHLD vs. DFEN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Global X Defense Tech ETF (SHLD) 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.

	SHLD	DFEN	Difference
Sharpe ratio: Return per unit of total volatility	0.43	1.18	-0.75
Sortino ratio: Return per unit of downside risk	0.78	1.85	-1.07
Omega ratio: Gain probability vs. loss probability	1.09	1.22	-0.13
Calmar ratio: Return relative to maximum drawdown	0.52	1.85	-1.33
Martin ratio: Return relative to average drawdown	1.28	4.29	-3.01

SHLD vs. DFEN - Sharpe Ratio Comparison

The current SHLD Sharpe Ratio is 0.43, which is lower than the DFEN Sharpe Ratio of 1.18. The chart below compares the historical Sharpe Ratios of SHLD 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

SHLD vs. DFEN - Drawdown Comparison

The maximum SHLD drawdown since its inception was -20.10%, smaller than the maximum DFEN drawdown of -91.36%. Use the drawdown chart below to compare losses from any high point for SHLD and DFEN.

Drawdown Indicators

	SHLD	DFEN	Difference
Max Drawdown Largest peak-to-trough decline	-20.10%	-91.36%	+71.26%
Max Drawdown (1Y) Largest decline over 1 year	-20.10%	-41.75%	+21.65%
Max Drawdown (3Y) Largest decline over 3 years	—	-43.13%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-55.30%	—
Current Drawdown Current decline from peak	-18.20%	-25.87%	+7.67%
Average Drawdown Average peak-to-trough decline	-3.34%	-45.20%	+41.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.12%	17.99%	-9.87%

Volatility

SHLD vs. DFEN - Volatility Comparison

The current volatility for Global X Defense Tech ETF (SHLD) is 9.05%, while Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) has a volatility of 27.31%. This indicates that SHLD 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

	SHLD	DFEN	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.05%	27.31%	-18.26%
Volatility (6M) Calculated over the trailing 6-month period	19.94%	55.81%	-35.87%
Volatility (1Y) Calculated over the trailing 1-year period	24.55%	65.81%	-41.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.29%	60.74%	-39.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.29%	71.66%	-50.37%

SHLD vs. DFEN - Expense Ratio Comparison

SHLD has a 0.50% expense ratio, which is lower than DFEN's 0.99% expense ratio.

Dividends

SHLD vs. DFEN - Dividend Comparison

SHLD's dividend yield for the trailing twelve months is around 0.56%, 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%
SHLD Global X Defense Tech ETF	0.56%	0.55%	0.53%	0.26%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SHLD and DFEN in my portfolio?

SHLD and DFEN have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SHLD or DFEN?

DFEN has higher volatility (27.31%) compared to SHLD (9.05%). In terms of maximum drawdown, SHLD dropped -20.10% vs DFEN's -91.36%.

Which ETF is better, SHLD or DFEN?

On 1-year performance, DFEN leads with 76.99% vs 10.40% for SHLD. On fees, SHLD is cheaper at 0.50% per year. On volatility, SHLD has been the lower-risk option at 9.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SHLD or DFEN?

Over the 1-year period, DFEN has performed better with a 76.99% return vs 10.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SHLD or DFEN?

SHLD is cheaper with a 0.50% expense ratio, compared with 0.99% for DFEN.

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

DFEN has the higher dividend yield at 7.89%, compared with 0.56% for SHLD.

What is the main difference between SHLD and DFEN?

SHLD is categorized as Aerospace & Defense, while DFEN is Leveraged Equities. SHLD tracks Global X Defense Tech Index, while DFEN tracks Dow Jones U.S. Select Aerospace & Defense Index (300%). They also come from different issuers: Global X and Direxion. Their fees differ too: 0.50% for SHLD and 0.99% for DFEN.

Which has better risk-adjusted returns?

DFEN currently has the higher Sharpe Ratio (1.18 vs 0.43), 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.