XAR vs. DFEN

Last updated Jun 23, 2026

XAR (SPDR S&P Aerospace & Defense ETF) and DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) are both exchange-traded funds - XAR is a Aerospace & Defense fund tracking the S&P Aerospace & Defense Select Industry Index, while DFEN is a Leveraged Equities fund tracking the Dow Jones U.S. Select Aerospace & Defense Index (300% Daily). Both are passively managed. Over the past 5 years, XAR returned 16.54%/yr vs 30.72%/yr for DFEN. Their correlation of 0.94 suggests significant overlap in exposure. XAR charges 0.35%/yr vs 0.96%/yr for DFEN.

Performance

XAR vs. DFEN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Aerospace & Defense ETF (XAR) and Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with XAR having a 15.26% return and DFEN slightly lower at 15.08%.

XAR

• 1D: -2.24%
• 1M: 2.49%
• YTD: 15.26%
• 6M: 11.31%
• 1Y: 40.45%
• 3Y*: 33.82%
• 5Y*: 16.54%
• 10Y*: 18.54%

DFEN

• 1D: -4.87%
• 1M: 11.39%
• YTD: 15.08%
• 6M: 7.37%
• 1Y: 78.27%
• 3Y*: 68.61%
• 5Y*: 30.72%
• 10Y*: —

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

XAR vs. DFEN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XAR SPDR S&P Aerospace & Defense ETF	15.26%	46.15%	23.32%	23.79%	-5.02%	2.31%	6.18%	39.33%	-4.58%	22.63%
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	15.08%	156.62%	27.07%	24.70%	6.99%	12.72%	-70.23%	95.09%	-32.86%	83.64%

Correlation

The correlation between XAR and DFEN is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (All Time) Calculated using the full available price history since May 3, 2017	0.94

The correlation between XAR and DFEN has been stable across timeframes, ranging from 0.90 to 0.94 - a consistent structural relationship.

XAR vs. DFEN - Sectors Allocation Comparison

Sectors	XAR	DFEN
Industrials	99.3%	18.7%
Technology	0.7%	0.0%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

XAR vs. DFEN — Risk / Return Rank

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

XAR

XAR Risk / Return Rank: 43
XAR Sharpe Ratio Rank: 42
XAR Sortino Ratio Rank: 43
XAR Omega Ratio Rank: 37
XAR Calmar Ratio Rank: 49
XAR Martin Ratio Rank: 42

DFEN

DFEN Risk / Return Rank: 35
DFEN Sharpe Ratio Rank: 34
DFEN Sortino Ratio Rank: 37
DFEN Omega Ratio Rank: 33
DFEN Calmar Ratio Rank: 39
DFEN Martin Ratio Rank: 31

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.

XAR vs. DFEN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Aerospace & Defense ETF (XAR) 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.

	XAR	DFEN	Difference
Sharpe ratio: Return per unit of total volatility	1.45	1.19	+0.27
Sortino ratio: Return per unit of downside risk	2.13	1.86	+0.27
Omega ratio: Gain probability vs. loss probability	1.24	1.22	+0.03
Calmar ratio: Return relative to maximum drawdown	2.36	1.88	+0.48
Martin ratio: Return relative to average drawdown	6.60	4.31	+2.29

XAR vs. DFEN - Sharpe Ratio Comparison

The current XAR Sharpe Ratio is 1.45, which is comparable to the DFEN Sharpe Ratio of 1.19. The chart below compares the historical Sharpe Ratios of XAR 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

XAR vs. DFEN - Drawdown Comparison

The maximum XAR drawdown since its inception was -46.37%, smaller than the maximum DFEN drawdown of -91.36%. Use the drawdown chart below to compare losses from any high point for XAR and DFEN.

Drawdown Indicators

	XAR	DFEN	Difference
Max Drawdown Largest peak-to-trough decline	-46.37%	-91.36%	+44.99%
Max Drawdown (1Y) Largest decline over 1 year	-17.22%	-41.75%	+24.53%
Max Drawdown (3Y) Largest decline over 3 years	-19.73%	-43.13%	+23.40%
Max Drawdown (5Y) Largest decline over 5 years	-32.40%	-55.30%	+22.90%
Max Drawdown (10Y) Largest decline over 10 years	-46.37%	—	—
Current Drawdown Current decline from peak	-5.02%	-24.59%	+19.57%
Average Drawdown Average peak-to-trough decline	-6.78%	-45.14%	+38.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.15%	18.23%	-12.08%

Volatility

XAR vs. DFEN - Volatility Comparison

The current volatility for SPDR S&P Aerospace & Defense ETF (XAR) is 10.60%, while Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) has a volatility of 25.05%. This indicates that XAR 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

	XAR	DFEN	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.60%	25.05%	-14.45%
Volatility (6M) Calculated over the trailing 6-month period	23.50%	56.07%	-32.57%
Volatility (1Y) Calculated over the trailing 1-year period	28.02%	66.43%	-38.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.69%	60.78%	-37.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.77%	71.64%	-46.87%

XAR vs. DFEN - Expense Ratio Comparison

XAR has a 0.35% expense ratio, which is lower than DFEN's 0.96% expense ratio.

Dividends

XAR vs. DFEN - Dividend Comparison

XAR's dividend yield for the trailing twelve months is around 0.34%, less than DFEN's 7.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	7.76%	8.89%	14.12%	1.13%	0.46%	1.89%	0.48%	0.50%	1.07%	1.50%	0.00%	0.00%
XAR SPDR S&P Aerospace & Defense ETF	0.34%	0.40%	0.66%	0.54%	0.50%	0.83%	0.63%	0.75%	1.19%	0.76%	1.09%	2.31%

Frequently Asked Questions

Can I hold both XAR and DFEN in my portfolio?

With a correlation of 0.92, XAR and DFEN move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, XAR or DFEN?

DFEN has higher volatility (25.05%) compared to XAR (10.60%). In terms of maximum drawdown, XAR dropped -46.37% vs DFEN's -91.36%.

Which ETF is better, XAR or DFEN?

On 5-year performance, DFEN leads with 30.72% vs 16.54% for XAR. On fees, XAR is cheaper at 0.35% per year. On volatility, XAR has been the lower-risk option at 10.60%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XAR or DFEN?

Over the 5-year period, DFEN has performed better with a 30.72% return vs 16.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XAR or DFEN?

XAR is cheaper with a 0.35% expense ratio, compared with 0.96% for DFEN.

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

DFEN has the higher dividend yield at 7.76%, compared with 0.34% for XAR.

What is the main difference between XAR and DFEN?

XAR is categorized as Aerospace & Defense, while DFEN is Leveraged Equities. XAR tracks S&P Aerospace & Defense Select Industry Index, while DFEN tracks Dow Jones U.S. Select Aerospace & Defense Index (300% Daily). They also come from different issuers: State Street and Direxion. Their fees differ too: 0.35% for XAR and 0.96% for DFEN.

Which has better risk-adjusted returns?

XAR currently has the higher Sharpe Ratio (1.45 vs 1.19), 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.