TYD vs. DFEN

Last updated Jun 10, 2026

TYD (Direxion Daily 7-10 Year Treasury Bull 3X) and DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) are both exchange-traded funds - TYD is a Leveraged Bonds fund tracking the NYSE 7-10 Year Treasury Bond 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 5 years, TYD returned -13.49%/yr vs 28.61%/yr for DFEN. At a correlation of -0.08, they often move in opposite directions. TYD charges 1.09%/yr vs 0.99%/yr for DFEN.

Performance

TYD vs. DFEN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily 7-10 Year Treasury Bull 3X (TYD) 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, TYD achieves a -7.06% return, which is significantly lower than DFEN's 9.17% return.

TYD

• 1D: 0.77%
• 1M: -3.53%
• YTD: -7.06%
• 6M: -6.67%
• 1Y: 0.51%
• 3Y*: -4.88%
• 5Y*: -13.49%
• 10Y*: -5.21%

DFEN

• 1D: 4.22%
• 1M: 7.12%
• YTD: 9.17%
• 6M: 28.36%
• 1Y: 61.29%
• 3Y*: 63.30%
• 5Y*: 28.61%
• 10Y*: —

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

TYD vs. DFEN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TYD Direxion Daily 7-10 Year Treasury Bull 3X	-7.06%	11.68%	-13.89%	-2.87%	-43.32%	-11.36%	27.62%	17.88%	0.76%	0.03%
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	9.17%	156.62%	27.07%	24.70%	6.99%	12.72%	-70.23%	95.09%	-32.86%	83.64%

Correlation

The correlation between TYD and DFEN is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.19
Correlation (3Y) Calculated over the trailing 3-year period	0.10
Correlation (5Y) Calculated over the trailing 5-year period	0.03
Correlation (All Time) Calculated using the full available price history since May 3, 2017	-0.08

The correlation between TYD and DFEN shifts across timeframes, from -0.08 (all time) to 0.19 (1 year), reflecting how their relationship changes across market environments.

TYD vs. DFEN - Sectors Allocation Comparison

Sectors	TYD	DFEN
Financial Services	21.2%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	19.7%
Real Estate	-	-
Technology	-	0.0%
Utilities	-	-

Return for Risk

TYD vs. DFEN — Risk / Return Rank

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

TYD

TYD Risk / Return Rank: 10
TYD Sharpe Ratio Rank: 10
TYD Sortino Ratio Rank: 9
TYD Omega Ratio Rank: 9
TYD Calmar Ratio Rank: 10
TYD Martin Ratio Rank: 10

DFEN

DFEN Risk / Return Rank: 31
DFEN Sharpe Ratio Rank: 30
DFEN Sortino Ratio Rank: 34
DFEN Omega Ratio Rank: 31
DFEN Calmar Ratio Rank: 33
DFEN Martin Ratio Rank: 27

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.

TYD vs. DFEN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily 7-10 Year Treasury Bull 3X (TYD) 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.

	TYD	DFEN	Difference
Sharpe ratio: Return per unit of total volatility	0.04	0.96	-0.93
Sortino ratio: Return per unit of downside risk	0.15	1.62	-1.47
Omega ratio: Gain probability vs. loss probability	1.02	1.19	-0.17
Calmar ratio: Return relative to maximum drawdown	0.04	1.48	-1.44
Martin ratio: Return relative to average drawdown	0.10	3.47	-3.37
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TYD vs. DFEN - Sharpe Ratio Comparison

The current TYD Sharpe Ratio is 0.04, which is lower than the DFEN Sharpe Ratio of 0.96. The chart below compares the historical Sharpe Ratios of TYD 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

	TYD	DFEN	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.04	0.96	-0.93
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.59	0.48	-1.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.26	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.05	0.22	-0.17

Drawdowns

TYD vs. DFEN - Drawdown Comparison

The maximum TYD drawdown since its inception was -64.28%, smaller than the maximum DFEN drawdown of -91.36%. Use the drawdown chart below to compare losses from any high point for TYD and DFEN.

Drawdown Indicators

	TYD	DFEN	Difference
Max Drawdown Largest peak-to-trough decline	-64.28%	-91.36%	+27.08%
Max Drawdown (1Y) Largest decline over 1 year	-13.54%	-41.75%	+28.21%
Max Drawdown (3Y) Largest decline over 3 years	-24.62%	-43.13%	+18.51%
Max Drawdown (5Y) Largest decline over 5 years	-59.84%	-55.30%	-4.54%
Max Drawdown (10Y) Largest decline over 10 years	-64.28%	—	—
Current Drawdown Current decline from peak	-59.61%	-28.46%	-31.15%
Average Drawdown Average peak-to-trough decline	-21.98%	-45.22%	+23.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.16%	17.75%	-12.59%

Volatility

TYD vs. DFEN - Volatility Comparison

The current volatility for Direxion Daily 7-10 Year Treasury Bull 3X (TYD) is 4.20%, while Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) has a volatility of 22.05%. This indicates that TYD 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

	TYD	DFEN	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.20%	22.05%	-17.85%
Volatility (6M) Calculated over the trailing 6-month period	9.65%	53.67%	-44.02%
Volatility (1Y) Calculated over the trailing 1-year period	13.80%	64.00%	-50.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.97%	60.30%	-37.33%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.36%	71.49%	-51.13%

TYD vs. DFEN - Expense Ratio Comparison

TYD has a 1.09% expense ratio, which is higher than DFEN's 0.99% expense ratio.

Dividends

TYD vs. DFEN - Dividend Comparison

TYD's dividend yield for the trailing twelve months is around 3.26%, less than DFEN's 8.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	8.18%	8.89%	14.12%	1.13%	0.46%	1.89%	0.48%	0.50%	1.07%	1.50%	0.00%	0.00%
TYD Direxion Daily 7-10 Year Treasury Bull 3X	3.26%	2.97%	3.10%	2.71%	0.55%	0.00%	9.80%	0.92%	1.10%	0.01%	6.84%	1.65%

Frequently Asked Questions

Can I hold both TYD and DFEN in my portfolio?

TYD and DFEN have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TYD or DFEN?

DFEN has higher volatility (22.05%) compared to TYD (4.20%). In terms of maximum drawdown, TYD dropped -64.28% vs DFEN's -91.36%.

Which ETF is better, TYD or DFEN?

On 5-year performance, DFEN leads with 28.61% vs -13.49% for TYD. On fees, DFEN is cheaper at 0.99% per year. On volatility, TYD has been the lower-risk option at 4.20%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TYD or DFEN?

Over the 5-year period, DFEN has performed better with a 28.61% return vs -13.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TYD or DFEN?

DFEN is cheaper with a 0.99% expense ratio, compared with 1.09% for TYD.

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

DFEN has the higher dividend yield at 8.18%, compared with 3.26% for TYD.

What is the main difference between TYD and DFEN?

TYD is categorized as Leveraged Bonds, while DFEN is Leveraged Equities. TYD tracks NYSE 7-10 Year Treasury Bond Index, while DFEN tracks Dow Jones U.S. Select Aerospace & Defense Index (300%). Their fees differ too: 1.09% for TYD and 0.99% for DFEN.

Which has better risk-adjusted returns?

DFEN currently has the higher Sharpe Ratio (0.96 vs 0.04), 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.