UDOW vs. DFEN

Last updated Jun 14, 2026

UDOW (ProShares UltraPro Dow30) and DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) are both Leveraged Equities funds - UDOW tracks the Dow Jones Industrial Average (300%) while DFEN tracks the Dow Jones U.S. Select Aerospace & Defense Index (300%). Both are passively managed. Over the past 5 years, UDOW returned 13.79%/yr vs 29.22%/yr for DFEN. A 0.71 correlation means they provide meaningful diversification when combined. UDOW charges 0.95%/yr vs 0.99%/yr for DFEN.

Performance

UDOW vs. DFEN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares UltraPro Dow30 (UDOW) 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, UDOW achieves a 14.65% return, which is significantly higher than DFEN's 13.12% return.

UDOW

• 1D: 2.07%
• 1M: 9.62%
• YTD: 14.65%
• 6M: 11.42%
• 1Y: 60.76%
• 3Y*: 32.31%
• 5Y*: 13.79%
• 10Y*: 23.82%

DFEN

• 1D: -2.71%
• 1M: 21.79%
• YTD: 13.12%
• 6M: 20.44%
• 1Y: 75.01%
• 3Y*: 64.38%
• 5Y*: 29.22%
• 10Y*: —

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

UDOW vs. DFEN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
UDOW ProShares UltraPro Dow30	14.65%	24.46%	28.47%	32.72%	-32.39%	65.67%	-17.15%	75.24%	-23.86%	66.94%
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	13.12%	156.62%	27.07%	24.70%	6.99%	12.72%	-70.23%	95.09%	-32.86%	83.64%

Correlation

The correlation between UDOW and DFEN is 0.50, 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	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.68
Correlation (All Time) Calculated using the full available price history since May 3, 2017	0.71

Over the past year, the correlation between UDOW and DFEN has dropped to 0.50 - well below their long-term average of 0.71, suggesting their price drivers have been diverging.

UDOW vs. DFEN - Sectors Allocation Comparison

Sectors	UDOW	DFEN
Financial Services	27.3%	-
Technology	19.1%	0.0%
Industrials	18.1%	20.4%
Healthcare	12.8%	-
Consumer Cyclical	11.0%	-
Consumer Defensive	4.1%	-
Basic Materials	3.7%	-
Energy	2.2%	-
Communication Services	1.8%	-
Real Estate	-	-
Utilities	-	-

Return for Risk

UDOW vs. DFEN — Risk / Return Rank

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

UDOW

UDOW Risk / Return Rank: 44
UDOW Sharpe Ratio Rank: 45
UDOW Sortino Ratio Rank: 44
UDOW Omega Ratio Rank: 41
UDOW Calmar Ratio Rank: 42
UDOW Martin Ratio Rank: 45

DFEN

DFEN Risk / Return Rank: 38
DFEN Sharpe Ratio Rank: 37
DFEN Sortino Ratio Rank: 40
DFEN Omega Ratio Rank: 36
DFEN Calmar Ratio Rank: 42
DFEN Martin Ratio Rank: 33

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.

UDOW vs. DFEN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares UltraPro Dow30 (UDOW) 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.

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.

	UDOW	DFEN	Difference
Sharpe ratio: Return per unit of total volatility	1.40	1.18	+0.22
Sortino ratio: Return per unit of downside risk	1.99	1.85	+0.14
Omega ratio: Gain probability vs. loss probability	1.24	1.22	+0.02
Calmar ratio: Return relative to maximum drawdown	1.86	1.85	+0.01
Martin ratio: Return relative to average drawdown	6.59	4.29	+2.30

UDOW vs. DFEN - Sharpe Ratio Comparison

The current UDOW Sharpe Ratio is 1.40, which is comparable to the DFEN Sharpe Ratio of 1.18. The chart below compares the historical Sharpe Ratios of UDOW 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.

Drawdowns

UDOW vs. DFEN - Drawdown Comparison

The maximum UDOW drawdown since its inception was -80.29%, smaller than the maximum DFEN drawdown of -91.36%. Use the drawdown chart below to compare losses from any high point for UDOW and DFEN.

Drawdown Indicators

	UDOW	DFEN	Difference
Max Drawdown Largest peak-to-trough decline	-80.29%	-91.36%	+11.07%
Max Drawdown (1Y) Largest decline over 1 year	-28.07%	-41.75%	+13.68%
Max Drawdown (3Y) Largest decline over 3 years	-44.83%	-43.13%	-1.70%
Max Drawdown (5Y) Largest decline over 5 years	-55.79%	-55.30%	-0.49%
Max Drawdown (10Y) Largest decline over 10 years	-80.29%	—	—
Current Drawdown Current decline from peak	-2.65%	-25.87%	+23.22%
Average Drawdown Average peak-to-trough decline	-14.37%	-45.20%	+30.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.94%	17.99%	-10.05%

Volatility

UDOW vs. DFEN - Volatility Comparison

The current volatility for ProShares UltraPro Dow30 (UDOW) is 12.92%, while Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) has a volatility of 27.31%. This indicates that UDOW 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

	UDOW	DFEN	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.92%	27.31%	-14.39%
Volatility (6M) Calculated over the trailing 6-month period	29.12%	55.81%	-26.69%
Volatility (1Y) Calculated over the trailing 1-year period	37.38%	65.81%	-28.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	44.39%	60.74%	-16.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	51.84%	71.66%	-19.82%

UDOW vs. DFEN - Expense Ratio Comparison

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

Dividends

UDOW vs. DFEN - Dividend Comparison

UDOW's dividend yield for the trailing twelve months is around 1.18%, less than DFEN's 7.89% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	7.89%	8.89%	14.12%	1.13%	0.46%	1.89%	0.48%	0.50%	1.07%	1.50%	0.00%	0.00%
UDOW ProShares UltraPro Dow30	1.18%	1.38%	0.95%	0.95%	0.83%	0.26%	0.19%	0.61%	0.73%	0.13%	0.26%	0.21%

Frequently Asked Questions

Can I hold both UDOW and DFEN in my portfolio?

UDOW and DFEN have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, UDOW or DFEN?

DFEN has higher volatility (27.31%) compared to UDOW (12.92%). In terms of maximum drawdown, UDOW dropped -80.29% vs DFEN's -91.36%.

Which ETF is better, UDOW or DFEN?

On 5-year performance, DFEN leads with 29.22% vs 13.79% for UDOW. On fees, UDOW is cheaper at 0.95% per year. On volatility, UDOW has been the lower-risk option at 12.92%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, UDOW or DFEN?

Over the 5-year period, DFEN has performed better with a 29.22% return vs 13.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, UDOW or DFEN?

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

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

DFEN has the higher dividend yield at 7.89%, compared with 1.18% for UDOW.

What is the main difference between UDOW and DFEN?

UDOW tracks Dow Jones Industrial Average (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 UDOW and 0.99% for DFEN.

Which has better risk-adjusted returns?

UDOW currently has the higher Sharpe Ratio (1.40 vs 1.18), 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.