TWM vs. ERX

Last updated Jun 25, 2026

TWM (ProShares UltraShort Russell2000) and ERX (Direxion Daily Energy Bull 2X Shares) are both Leveraged Equities funds - TWM tracks the Russell 2000 (-200%) while ERX tracks the Energy Select Sector Index (300%). Both are passively managed. Over the past 10 years, TWM returned -28.63%/yr vs -10.44%/yr for ERX. At a correlation of -0.61, they often move in opposite directions. TWM charges 0.95%/yr vs 1.09%/yr for ERX.

Performance

TWM vs. ERX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares UltraShort Russell2000 (TWM) and Direxion Daily Energy Bull 2X Shares (ERX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TWM achieves a -33.44% return, which is significantly lower than ERX's 39.90% return. Over the past 10 years, TWM has underperformed ERX with an annualized return of -28.63%, while ERX has yielded a comparatively higher -10.44% annualized return.

TWM

• 1D: -1.99%
• 1M: -9.52%
• YTD: -33.44%
• 6M: -29.75%
• 1Y: -50.14%
• 3Y*: -31.40%
• 5Y*: -17.67%
• 10Y*: -28.63%

ERX

• 1D: -3.19%
• 1M: -18.65%
• YTD: 39.90%
• 6M: 41.93%
• 1Y: 53.28%
• 3Y*: 18.69%
• 5Y*: 24.28%
• 10Y*: -10.44%

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

TWM vs. ERX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TWM ProShares UltraShort Russell2000	-33.44%	-24.71%	-19.35%	-26.84%	28.43%	-35.43%	-60.01%	-38.40%	19.15%	-26.36%
ERX Direxion Daily Energy Bull 2X Shares	39.90%	2.79%	1.09%	-12.26%	130.58%	111.91%	-91.60%	17.13%	-55.94%	-11.60%

Correlation

The correlation between TWM and ERX is -0.05, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.05
Correlation (3Y) Calculated over the trailing 3-year period	-0.29
Correlation (5Y) Calculated over the trailing 5-year period	-0.40
Correlation (10Y) Calculated over the trailing 10-year period	-0.51
Correlation (All Time) Calculated using the full available price history since Nov 19, 2008	-0.61

Over the past year, the inverse relationship between TWM and ERX has weakened: their correlation has moved from -0.61 to -0.05, meaning they move in opposite directions less often than they have historically.

TWM vs. ERX - Sectors Allocation Comparison

Sectors	TWM	ERX
Financial Services	100.3%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	100.0%
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

TWM vs. ERX — Risk / Return Rank

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

TWM

TWM Risk / Return Rank: 0
TWM Sharpe Ratio Rank: 0
TWM Sortino Ratio Rank: 0
TWM Omega Ratio Rank: 1
TWM Calmar Ratio Rank: 0
TWM Martin Ratio Rank: 1

ERX

ERX Risk / Return Rank: 38
ERX Sharpe Ratio Rank: 39
ERX Sortino Ratio Rank: 37
ERX Omega Ratio Rank: 35
ERX Calmar Ratio Rank: 41
ERX Martin Ratio Rank: 38

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.

TWM vs. ERX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares UltraShort Russell2000 (TWM) 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.

	TWM	ERX	Difference
Sharpe ratio: Return per unit of total volatility	-1.28	1.28	-2.56
Sortino ratio: Return per unit of downside risk	-2.06	1.77	-3.84
Omega ratio: Gain probability vs. loss probability	0.78	1.21	-0.44
Calmar ratio: Return relative to maximum drawdown	-0.98	1.88	-2.86
Martin ratio: Return relative to average drawdown	-1.63	5.39	-7.01

TWM vs. ERX - Sharpe Ratio Comparison

The current TWM Sharpe Ratio is -1.28, which is lower than the ERX Sharpe Ratio of 1.28. The chart below compares the historical Sharpe Ratios of TWM and ERX, 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

TWM vs. ERX - Drawdown Comparison

The maximum TWM drawdown since its inception was -99.94%, roughly equal to the maximum ERX drawdown of -99.54%. Use the drawdown chart below to compare losses from any high point for TWM and ERX.

Drawdown Indicators

	TWM	ERX	Difference
Max Drawdown Largest peak-to-trough decline	-99.94%	-99.54%	-0.40%
Max Drawdown (1Y) Largest decline over 1 year	-51.17%	-28.49%	-22.68%
Max Drawdown (3Y) Largest decline over 3 years	-74.08%	-42.34%	-31.74%
Max Drawdown (5Y) Largest decline over 5 years	-76.45%	-46.90%	-29.55%
Max Drawdown (10Y) Largest decline over 10 years	-96.79%	-98.59%	+1.80%
Current Drawdown Current decline from peak	-99.94%	-92.94%	-7.00%
Average Drawdown Average peak-to-trough decline	-87.29%	-67.10%	-20.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	30.83%	9.92%	+20.91%

Volatility

TWM vs. ERX - Volatility Comparison

The current volatility for ProShares UltraShort Russell2000 (TWM) is 13.25%, while Direxion Daily Energy Bull 2X Shares (ERX) has a volatility of 14.55%. This indicates that TWM 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.

Volatility by Period

	TWM	ERX	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.25%	14.55%	-1.30%
Volatility (6M) Calculated over the trailing 6-month period	28.81%	34.19%	-5.38%
Volatility (1Y) Calculated over the trailing 1-year period	39.39%	41.83%	-2.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	45.24%	51.93%	-6.69%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	45.83%	69.08%	-23.25%

TWM vs. ERX - Expense Ratio Comparison

TWM has a 0.95% expense ratio, which is lower than ERX's 1.09% expense ratio.

Dividends

TWM vs. ERX - Dividend Comparison

TWM's dividend yield for the trailing twelve months is around 6.81%, more than ERX's 1.82% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
ERX Direxion Daily Energy Bull 2X Shares	1.82%	2.54%	2.94%	3.17%	2.23%	2.16%	2.35%	1.56%	3.10%	0.85%
TWM ProShares UltraShort Russell2000	6.81%	5.36%	6.21%	4.72%	0.17%	0.00%	0.41%	1.49%	0.73%	0.05%

Frequently Asked Questions

Can I hold both TWM and ERX in my portfolio?

TWM and ERX have a correlation of -0.05, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TWM or ERX?

ERX has higher volatility (14.55%) compared to TWM (13.25%). In terms of maximum drawdown, TWM dropped -99.94% vs ERX's -99.54%.

Which ETF is better, TWM or ERX?

On 10-year performance, ERX leads with -10.44% vs -28.63% for TWM. On fees, TWM is cheaper at 0.95% per year. On volatility, TWM has been the lower-risk option at 13.25%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TWM or ERX?

Over the 10-year period, ERX has performed better with a -10.44% return vs -28.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TWM or ERX?

TWM is cheaper with a 0.95% expense ratio, compared with 1.09% for ERX.

Which ETF pays a higher dividend yield, TWM or ERX?

TWM has the higher dividend yield at 6.81%, compared with 1.82% for ERX.

What is the main difference between TWM and ERX?

TWM tracks Russell 2000 (-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 TWM and 1.09% for ERX.

Which has better risk-adjusted returns?

ERX currently has the higher Sharpe Ratio (1.28 vs -1.28), 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.