SMN vs. ERX
SMN (ProShares UltraShort Basic Materials) and ERX (Direxion Daily Energy Bull 2X Shares) are both Leveraged Equities funds - SMN tracks the Dow Jones U.S. Basic Materials Index (-200%) while ERX tracks the Energy Select Sector Index (300%). Both are passively managed. Over the past 10 years, SMN returned -25.35%/yr vs -10.18%/yr for ERX. At a correlation of -0.67, they often move in opposite directions. SMN charges 0.95%/yr vs 1.09%/yr for ERX.
Performance
SMN vs. ERX - Performance Comparison
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Returns By Period
In the year-to-date period, SMN achieves a -22.50% return, which is significantly lower than ERX's 44.06% return. Over the past 10 years, SMN has underperformed ERX with an annualized return of -25.35%, while ERX has yielded a comparatively higher -10.18% annualized return.
SMN
- 1D
- 2.68%
- 1M
- -3.51%
- YTD
- -22.50%
- 6M
- -21.16%
- 1Y
- -28.70%
- 3Y*
- -15.70%
- 5Y*
- -16.33%
- 10Y*
- -25.35%
ERX
- 1D
- 1.09%
- 1M
- -16.23%
- YTD
- 44.06%
- 6M
- 45.10%
- 1Y
- 53.56%
- 3Y*
- 19.85%
- 5Y*
- 25.26%
- 10Y*
- -10.18%
SMN vs. ERX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SMN ProShares UltraShort Basic Materials | -22.50% | -17.96% | 7.37% | -20.23% | -3.03% | -45.83% | -55.75% | -33.63% | 32.74% | -38.03% |
ERX Direxion Daily Energy Bull 2X Shares | 44.06% | 2.79% | 1.09% | -12.26% | 130.58% | 111.91% | -91.60% | 17.13% | -55.94% | -11.60% |
Correlation
The correlation between SMN and ERX is -0.15, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.15 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.31 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.45 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.55 |
Correlation (All Time) Calculated using the full available price history since Nov 19, 2008 | -0.67 |
Over the past year, the inverse relationship between SMN and ERX has weakened: their correlation has moved from -0.67 to -0.15, meaning they move in opposite directions less often than they have historically.
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Return for Risk
SMN vs. ERX — Risk / Return Rank
SMN
ERX
SMN vs. ERX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for ProShares UltraShort Basic Materials (SMN) and Direxion Daily Energy Bull 2X Shares (ERX). 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.
| SMN | ERX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.11 | ||
| Sortino ratioReturn per unit of downside risk | -2.85 | ||
| Omega ratioGain probability vs. loss probability | 0.88 | 1.22 | -0.34 |
| Calmar ratioReturn relative to maximum drawdown | -0.75 | 1.89 | -2.64 |
| Martin ratioReturn relative to average drawdown | -1.28 | 5.50 | -6.78 |
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Drawdowns
SMN vs. ERX - Drawdown Comparison
The maximum SMN drawdown since its inception was -99.92%, roughly equal to the maximum ERX drawdown of -99.54%. Use the drawdown chart below to compare losses from any high point for SMN and ERX.
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Drawdown Indicators
| SMN | ERX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -99.92% | -99.54% | -0.38% |
Max Drawdown (1Y)Largest decline over 1 year | -38.52% | -28.49% | -10.03% |
Max Drawdown (3Y)Largest decline over 3 years | -53.71% | -42.34% | -11.37% |
Max Drawdown (5Y)Largest decline over 5 years | -66.05% | -46.90% | -19.15% |
Max Drawdown (10Y)Largest decline over 10 years | -95.39% | -98.59% | +3.20% |
Current DrawdownCurrent decline from peak | -99.91% | -92.73% | -7.18% |
Average DrawdownAverage peak-to-trough decline | -90.55% | -67.09% | -23.46% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 22.40% | 9.77% | +12.63% |
Volatility
SMN vs. ERX - Volatility Comparison
The current volatility for ProShares UltraShort Basic Materials (SMN) is 11.78%, while Direxion Daily Energy Bull 2X Shares (ERX) has a volatility of 14.48%. This indicates that SMN experiences smaller price fluctuations and is considered to be less risky than ERX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SMN | ERX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 11.78% | 14.48% | -2.70% |
Volatility (6M)Calculated over the trailing 6-month period | 27.91% | 34.00% | -6.09% |
Volatility (1Y)Calculated over the trailing 1-year period | 35.15% | 41.99% | -6.84% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 39.65% | 51.92% | -12.27% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 42.91% | 69.08% | -26.17% |
SMN vs. ERX - Expense Ratio Comparison
SMN has a 0.95% expense ratio, which is lower than ERX's 1.09% expense ratio.
Dividends
SMN vs. ERX - Dividend Comparison
SMN's dividend yield for the trailing twelve months is around 4.54%, more than ERX's 1.86% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
ERX Direxion Daily Energy Bull 2X Shares | 1.86% | 2.54% | 2.94% | 3.17% | 2.23% | 2.16% | 2.35% | 1.56% | 3.10% | 0.85% |
SMN ProShares UltraShort Basic Materials | 4.54% | 4.08% | 5.02% | 4.54% | 0.42% | 0.00% | 0.00% | 0.72% | 0.06% | 0.00% |
Frequently Asked Questions
SMN and ERX have a correlation of -0.15, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ERX has higher volatility (14.48%) compared to SMN (11.78%). In terms of maximum drawdown, SMN dropped -99.92% vs ERX's -99.54%.
On 10-year performance, ERX leads with -10.18% vs -25.35% for SMN. On fees, SMN is cheaper at 0.95% per year. On volatility, SMN has been the lower-risk option at 11.78%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, ERX has performed better with a -10.18% return vs -25.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SMN is cheaper with a 0.95% expense ratio, compared with 1.09% for ERX.
SMN has the higher dividend yield at 4.54%, compared with 1.86% for ERX.
SMN tracks Dow Jones U.S. Basic Materials Index (-200%), while ERX tracks Energy Select Sector Index (300%). They also come from different issuers: ProShares and Direxion. Their fees differ too: 0.95% for SMN and 1.09% for ERX.
ERX currently has the higher Sharpe Ratio (1.29 vs -0.82), 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.
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