SPDN vs. SEF

Last updated Jul 14, 2026

SPDN (Direxion Daily S&P 500 Bear 1x Shares) and SEF (ProShares Short Financials) are both Inverse Equities funds - SPDN tracks the S&P 500 Index while SEF tracks the Dow Jones U.S. Financials Index (-100%). Both are passively managed. Over the past 10 years, SPDN returned -12.22%/yr vs -12.23%/yr for SEF. A 0.77 correlation means they provide meaningful diversification when combined. SPDN charges 0.50%/yr vs 0.95%/yr for SEF.

Performance

SPDN vs. SEF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily S&P 500 Bear 1x Shares (SPDN) and ProShares Short Financials (SEF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SPDN achieves a -6.85% return, which is significantly lower than SEF's -1.02% return. Both investments have delivered pretty close results over the past 10 years, with SPDN having a -12.22% annualized return and SEF not far behind at -12.23%.

SPDN

• 1D: 0.93%
• 1M: -0.80%
• 6M: -5.24%
• YTD: -6.85%
• 1Y: -12.68%
• 3Y*: -11.24%
• 5Y*: -8.03%
• 10Y*: -12.22%

SEF

• 1D: -0.62%
• 1M: -4.86%
• 6M: -0.23%
• YTD: -1.02%
• 1Y: -3.98%
• 3Y*: -12.00%
• 5Y*: -7.28%
• 10Y*: -12.23%

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

SPDN vs. SEF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPDN Direxion Daily S&P 500 Bear 1x Shares	-6.85%	-11.09%	-12.88%	-15.04%	18.63%	-23.72%	-24.56%	-21.94%	5.41%	-17.16%
SEF ProShares Short Financials	-1.02%	-9.82%	-17.81%	-8.81%	11.85%	-27.02%	-16.93%	-23.51%	10.34%	-17.12%

Correlation

The correlation between SPDN and SEF is 0.53, 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	0.53
Correlation (3Y) Calculated over the trailing 3-year period	0.63
Correlation (5Y) Calculated over the trailing 5-year period	0.75
Correlation (10Y) Calculated over the trailing 10-year period	0.77
Correlation (All Time) Calculated using the full available price history since Jun 8, 2016	0.77

Over the past year, the correlation between SPDN and SEF has dropped to 0.53 - well below their long-term average of 0.77, suggesting their price drivers have been diverging.

Return for Risk

SPDN vs. SEF — Risk / Return Rank

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

SPDN

SPDN Risk / Return Rank: 2
SPDN Sharpe Ratio Rank: 1
SPDN Sortino Ratio Rank: 2
SPDN Omega Ratio Rank: 2
SPDN Calmar Ratio Rank: 3
SPDN Martin Ratio Rank: 1

SEF

SEF Risk / Return Rank: 6
SEF Sharpe Ratio Rank: 7
SEF Sortino Ratio Rank: 6
SEF Omega Ratio Rank: 6
SEF Calmar Ratio Rank: 7
SEF Martin Ratio Rank: 6

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.

SPDN vs. SEF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily S&P 500 Bear 1x Shares (SPDN) and ProShares Short Financials (SEF). 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.

	SPDN	SEF	Difference
Sharpe ratio: Return per unit of total volatility	-1.00	-0.27	-0.73
Sortino ratio: Return per unit of downside risk	-1.41	-0.30	-1.11
Omega ratio: Gain probability vs. loss probability	0.85	0.97	-0.12
Calmar ratio: Return relative to maximum drawdown	-0.80	-0.28	-0.52
Martin ratio: Return relative to average drawdown	-1.53	-0.73	-0.80

SPDN vs. SEF - Sharpe Ratio Comparison

The current SPDN Sharpe Ratio is -1.00, which is lower than the SEF Sharpe Ratio of -0.27. The chart below compares the historical Sharpe Ratios of SPDN and SEF, 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

SPDN vs. SEF - Drawdown Comparison

The maximum SPDN drawdown since its inception was -75.31%, smaller than the maximum SEF drawdown of -96.51%. Use the drawdown chart below to compare losses from any high point for SPDN and SEF.

Drawdown Indicators

	SPDN	SEF	Difference
Max Drawdown Largest peak-to-trough decline	-75.31%	-96.51%	+21.20%
Max Drawdown (1Y) Largest decline over 1 year	-15.93%	-14.12%	-1.81%
Max Drawdown (3Y) Largest decline over 3 years	-38.24%	-39.40%	+1.16%
Max Drawdown (5Y) Largest decline over 5 years	-43.85%	-41.62%	-2.23%
Max Drawdown (10Y) Largest decline over 10 years	-73.97%	-73.40%	-0.57%
Current Drawdown Current decline from peak	-74.91%	-96.45%	+21.54%
Average Drawdown Average peak-to-trough decline	-48.79%	-82.78%	+33.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.28%	5.43%	+2.85%

Volatility

SPDN vs. SEF - Volatility Comparison

Direxion Daily S&P 500 Bear 1x Shares (SPDN) and ProShares Short Financials (SEF) have volatilities of 4.18% and 4.35%, 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

	SPDN	SEF	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.18%	4.35%	-0.17%
Volatility (6M) Calculated over the trailing 6-month period	10.08%	11.33%	-1.25%
Volatility (1Y) Calculated over the trailing 1-year period	12.73%	14.65%	-1.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.97%	17.98%	-1.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.01%	20.45%	-2.44%

SPDN vs. SEF - Expense Ratio Comparison

SPDN has a 0.50% expense ratio, which is lower than SEF's 0.95% expense ratio.

Dividends

SPDN vs. SEF - Dividend Comparison

SPDN's dividend yield for the trailing twelve months is around 3.33%, less than SEF's 3.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
SEF ProShares Short Financials	3.39%	4.33%	5.72%	4.43%	0.39%	0.00%	0.12%	1.25%	0.41%	0.00%
SPDN Direxion Daily S&P 500 Bear 1x Shares	3.33%	4.06%	5.32%	5.84%	0.96%	0.00%	0.10%	1.89%	1.24%	0.42%

Frequently Asked Questions

Can I hold both SPDN and SEF in my portfolio?

SPDN and SEF have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SPDN or SEF?

SEF has higher volatility (4.35%) compared to SPDN (4.18%). In terms of maximum drawdown, SPDN dropped -75.31% vs SEF's -96.51%.

Which ETF is better, SPDN or SEF?

On 10-year performance, SPDN leads with -12.22% vs -12.23% for SEF. On fees, SPDN is cheaper at 0.50% per year. On volatility, SPDN has been the lower-risk option at 4.18%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPDN or SEF?

Over the 10-year period, SPDN has performed better with a -12.22% return vs -12.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPDN or SEF?

SPDN is cheaper with a 0.50% expense ratio, compared with 0.95% for SEF.

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

SEF has the higher dividend yield at 3.39%, compared with 3.33% for SPDN.

What is the main difference between SPDN and SEF?

SPDN tracks S&P 500 Index, while SEF tracks Dow Jones U.S. Financials Index (-100%). They also come from different issuers: Direxion and ProShares. Their fees differ too: 0.50% for SPDN and 0.95% for SEF.

Which has better risk-adjusted returns?

SEF currently has the higher Sharpe Ratio (-0.27 vs -1.00), 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.