TQQQ vs. DFEN

Last updated Jun 9, 2026

TQQQ (ProShares UltraPro QQQ) and DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) are both Leveraged Equities funds - TQQQ tracks the NASDAQ-100 Index (300%) while DFEN tracks the Dow Jones U.S. Select Aerospace & Defense Index (300%). Both are passively managed. Over the past 5 years, TQQQ returned 24.89%/yr vs 27.43%/yr for DFEN. At a 0.49 correlation, their price movements are largely independent. TQQQ charges 0.95%/yr vs 0.99%/yr for DFEN.

Performance

TQQQ vs. DFEN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares UltraPro QQQ (TQQQ) 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, TQQQ achieves a 44.91% return, which is significantly higher than DFEN's 4.76% return.

TQQQ

• 1D: 4.41%
• 1M: -0.01%
• YTD: 44.91%
• 6M: 37.12%
• 1Y: 106.99%
• 3Y*: 62.78%
• 5Y*: 24.89%
• 10Y*: 43.95%

DFEN

• 1D: -2.96%
• 1M: 2.78%
• YTD: 4.76%
• 6M: 19.83%
• 1Y: 57.44%
• 3Y*: 61.07%
• 5Y*: 27.43%
• 10Y*: —

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

TQQQ vs. DFEN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TQQQ ProShares UltraPro QQQ	44.91%	34.35%	58.27%	198.04%	-79.09%	82.98%	110.05%	133.84%	-19.79%	42.51%
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	4.76%	156.62%	27.07%	24.70%	6.99%	12.72%	-70.23%	95.09%	-32.86%	83.64%

Correlation

The correlation between TQQQ and DFEN is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.42
Correlation (3Y) Calculated over the trailing 3-year period	0.43
Correlation (5Y) Calculated over the trailing 5-year period	0.51
Correlation (All Time) Calculated using the full available price history since May 4, 2017	0.49

The correlation between TQQQ and DFEN has been stable across timeframes, ranging from 0.42 to 0.51 - a consistent structural relationship.

TQQQ vs. DFEN - Sectors Allocation Comparison

Sectors	TQQQ	DFEN
Technology	53.8%	0.0%
Communication Services	15.8%	-
Consumer Cyclical	12.3%	-
Consumer Defensive	7.7%	-
Healthcare	4.2%	-
Industrials	2.8%	19.7%
Utilities	1.4%	-
Basic Materials	1.1%	-
Energy	0.6%	-
Financial Services	0.2%	-
Real Estate	0.1%	-

Return for Risk

TQQQ vs. DFEN — Risk / Return Rank

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

TQQQ

TQQQ Risk / Return Rank: 63
TQQQ Sharpe Ratio Rank: 74
TQQQ Sortino Ratio Rank: 57
TQQQ Omega Ratio Rank: 60
TQQQ Calmar Ratio Rank: 64
TQQQ Martin Ratio Rank: 59

DFEN

DFEN Risk / Return Rank: 29
DFEN Sharpe Ratio Rank: 27
DFEN Sortino Ratio Rank: 32
DFEN Omega Ratio Rank: 29
DFEN Calmar Ratio Rank: 31
DFEN Martin Ratio Rank: 26

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.

TQQQ vs. DFEN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares UltraPro QQQ (TQQQ) 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.

	TQQQ	DFEN	Difference
Sharpe ratio: Return per unit of total volatility	2.16	0.90	+1.25
Sortino ratio: Return per unit of downside risk	2.45	1.56	+0.90
Omega ratio: Gain probability vs. loss probability	1.33	1.18	+0.15
Calmar ratio: Return relative to maximum drawdown	2.91	1.38	+1.53
Martin ratio: Return relative to average drawdown	9.45	3.26	+6.19
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TQQQ vs. DFEN - Sharpe Ratio Comparison

The current TQQQ Sharpe Ratio is 2.16, which is higher than the DFEN Sharpe Ratio of 0.90. The chart below compares the historical Sharpe Ratios of TQQQ 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.

Sharpe Ratios by Period

	TQQQ	DFEN	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.16	0.90	+1.25
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.37	0.46	-0.08
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.67	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.72	0.22	+0.50

Drawdowns

TQQQ vs. DFEN - Drawdown Comparison

The maximum TQQQ drawdown since its inception was -81.66%, smaller than the maximum DFEN drawdown of -91.36%. Use the drawdown chart below to compare losses from any high point for TQQQ and DFEN.

Drawdown Indicators

	TQQQ	DFEN	Difference
Max Drawdown Largest peak-to-trough decline	-81.66%	-91.36%	+9.70%
Max Drawdown (1Y) Largest decline over 1 year	-36.97%	-41.75%	+4.78%
Max Drawdown (3Y) Largest decline over 3 years	-58.04%	-43.13%	-14.91%
Max Drawdown (5Y) Largest decline over 5 years	-81.66%	-55.30%	-26.36%
Max Drawdown (10Y) Largest decline over 10 years	-81.66%	—	—
Current Drawdown Current decline from peak	-12.55%	-31.35%	+18.80%
Average Drawdown Average peak-to-trough decline	-18.52%	-45.25%	+26.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.36%	17.66%	-6.30%

Volatility

TQQQ vs. DFEN - Volatility Comparison

ProShares UltraPro QQQ (TQQQ) and Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) have volatilities of 20.84% and 21.71%, 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

	TQQQ	DFEN	Difference
Volatility (1M) Calculated over the trailing 1-month period	20.84%	21.71%	-0.87%
Volatility (6M) Calculated over the trailing 6-month period	39.54%	53.65%	-14.11%
Volatility (1Y) Calculated over the trailing 1-year period	49.94%	64.00%	-14.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	66.84%	60.30%	+6.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	66.15%	71.51%	-5.36%

TQQQ vs. DFEN - Expense Ratio Comparison

TQQQ has a 0.95% expense ratio, which is lower than DFEN's 0.99% expense ratio.

Dividends

TQQQ vs. DFEN - Dividend Comparison

TQQQ's dividend yield for the trailing twelve months is around 0.41%, less than DFEN's 8.52% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	8.52%	8.89%	14.12%	1.13%	0.46%	1.89%	0.48%	0.50%	1.07%	1.50%	0.00%	0.00%
TQQQ ProShares UltraPro QQQ	0.41%	0.65%	1.27%	1.26%	0.57%	0.00%	0.00%	0.06%	0.11%	0.00%	0.00%	0.01%

Frequently Asked Questions

Can I hold both TQQQ and DFEN in my portfolio?

TQQQ and DFEN have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TQQQ or DFEN?

DFEN has higher volatility (21.71%) compared to TQQQ (20.84%). In terms of maximum drawdown, TQQQ dropped -81.66% vs DFEN's -91.36%.

Which ETF is better, TQQQ or DFEN?

On 5-year performance, DFEN leads with 27.43% vs 24.89% for TQQQ. On fees, TQQQ is cheaper at 0.95% per year. On volatility, TQQQ has been the lower-risk option at 20.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TQQQ or DFEN?

Over the 5-year period, DFEN has performed better with a 27.43% return vs 24.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TQQQ or DFEN?

TQQQ is cheaper with a 0.95% expense ratio, compared with 0.99% for DFEN.

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

DFEN has the higher dividend yield at 8.52%, compared with 0.41% for TQQQ.

What is the main difference between TQQQ and DFEN?

TQQQ tracks NASDAQ-100 Index (300%), while DFEN tracks Dow Jones U.S. Select Aerospace & Defense Index (300%). They also come from different issuers: ProShares and Direxion. Their fees differ too: 0.95% for TQQQ and 0.99% for DFEN.

Which has better risk-adjusted returns?

TQQQ currently has the higher Sharpe Ratio (2.16 vs 0.90), 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.