USGG vs. BABU

Last updated Jun 4, 2026

USGG (Leverage Shares 2X Long USAR Daily ETF) and BABU (Direxion Daily BABA Bull 2X ETF) are both Leveraged Equities funds - USGG tracks the USA Rare Earth, Inc. (USAR) while BABU tracks the Alibaba Group Holding Limited (BABA). Both are passively managed. At a 0.30 correlation, their price movements are largely independent. USGG charges 0.75%/yr vs 0.97%/yr for BABU.

Performance

USGG vs. BABU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Leverage Shares 2X Long USAR Daily ETF (USGG) and Direxion Daily BABA Bull 2X ETF (BABU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

USGG

• 1D: -17.96%
• 1M: 7.54%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

BABU

• 1D: -5.41%
• 1M: -11.25%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

USGG vs. BABU - Yearly Performance Comparison

	2026 (YTD)
USGG Leverage Shares 2X Long USAR Daily ETF	13.35%
BABU Direxion Daily BABA Bull 2X ETF	-44.84%

Correlation

The correlation between USGG and BABU is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Feb 12, 2026	0.30

Return for Risk

USGG vs. BABU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Leverage Shares 2X Long USAR Daily ETF (USGG) and Direxion Daily BABA Bull 2X ETF (BABU). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	USGG	BABU	Difference
Sharpe Ratio (All Time) Calculated using the full available price history	1.17	-1.05	+2.22

Drawdowns

USGG vs. BABU - Drawdown Comparison

The maximum USGG drawdown since its inception was -77.74%, which is greater than BABU's maximum drawdown of -49.17%. Use the drawdown chart below to compare losses from any high point for USGG and BABU.

Drawdown Indicators

	USGG	BABU	Difference
Max Drawdown Largest peak-to-trough decline	-77.74%	-49.17%	-28.57%
Current Drawdown Current decline from peak	-32.40%	-44.84%	+12.44%
Average Drawdown Average peak-to-trough decline	-46.06%	-35.05%	-11.01%

Volatility

Volatility by Period

	USGG	BABU	Difference
Volatility (1Y) Calculated over the trailing 1-year period	225.33%	82.22%	+143.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	225.33%	82.22%	+143.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	225.33%	82.22%	+143.11%

USGG vs. BABU - Expense Ratio Comparison

USGG has a 0.75% expense ratio, which is lower than BABU's 0.97% expense ratio.

Dividends

USGG vs. BABU - Dividend Comparison

USGG has not paid dividends to shareholders, while BABU's dividend yield for the trailing twelve months is around 0.36%.

Position	TTM
BABU Direxion Daily BABA Bull 2X ETF	0.36%
USGG Leverage Shares 2X Long USAR Daily ETF	0.00%

Frequently Asked Questions

Can I hold both USGG and BABU in my portfolio?

USGG and BABU have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, USGG or BABU?

On fees, USGG is cheaper at 0.75% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, USGG or BABU?

USGG is cheaper with a 0.75% expense ratio, compared with 0.97% for BABU.

Which ETF pays a higher dividend yield, USGG or BABU?

BABU has the higher dividend yield at 0.36%, compared with 0.00% for USGG.

What is the main difference between USGG and BABU?

USGG tracks USA Rare Earth, Inc. (USAR), while BABU tracks Alibaba Group Holding Limited (BABA). They also come from different issuers: Leverage Shares and Direxion. Their fees differ too: 0.75% for USGG and 0.97% for BABU.