DFEN vs IVV
Direxion Daily Aerospace & Defense Bull 3X ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. DFEN delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | DFEN | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.96% | 0.03% | |
| AUM | $408M | $865.2B | |
| Dividend Yield | 7.07% | 1.09% | |
| Holdings | 55 | 508 | |
| YTD Return | +20.59% | +14.50% | |
| 1Y Return | +61.91% | +22.02% | |
| 3Y Return (annualized) | +66.97% | +21.80% | |
| 5Y Return (annualized) | +33.88% | +13.37% | |
| Volatility (annualized) | 66.7% | 15.1% | |
| Max Drawdown | -91.4% | -56.5% | |
| Fund Family | Direxion Shares ETF Trust | iShares by BlackRock (US) | |
| Category | Alternative | Equity | |
| Inception | May 3, 2017 | May 15, 2000 |
DFEN vs IVV Performance
Direxion Daily Aerospace & Defense Bull 3X ETF (DFEN) is a ETF from Direxion Shares ETF Trust and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year DFEN returned +61.91% while IVV returned +22.02%. Year to date, DFEN is up 20.59% versus a gain of 14.50% for IVV.
Over three years, DFEN compounded at +66.97% per year against +21.80% for IVV; over five years the annualized figures are +33.88% and +13.37% respectively. Across the full 9-year window we track, DFEN has the edge at +16.11% annualized vs +7.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFEN has been the more volatile fund, with annualized monthly volatility of 66.7% compared with 15.1% for IVV. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -91.4% for DFEN and -56.5% for IVV. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFEN charges 0.96% per year while IVV charges 0.03%. On a $10,000 position that is $96 vs $3 annually, a gap of $93 per year that compounds over a long holding period. On income, DFEN currently yields 7.07% against 1.09% for IVV.
Holdings Overlap
DFEN and IVV share 12 holdings out of 545 unique holdings combined, representing a 2.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DFEN or IVV?
DFEN has an expense ratio of 0.96% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $93 per year of difference.
Which performed better, DFEN or IVV?
Over the past year DFEN returned +61.91% vs +22.02% for IVV, so DFEN leads on 1-year performance. Over the longest common window we track (9 years), DFEN annualized +16.11% vs +7.07% for IVV. Past performance does not guarantee future results.
Which is riskier, DFEN or IVV?
DFEN has been the more volatile fund at 66.7% annualized versus 15.1% for IVV. Worst drawdown: DFEN -91.4% vs IVV -56.5%.
Should I hold both DFEN and IVV?
DFEN and IVV have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFEN and IVV?
DFEN and IVV share 12 common holdings with a 2.1% weight overlap. Combined, they hold 545 unique securities.
Which pays a higher dividend, DFEN or IVV?
DFEN yields 7.07% while IVV yields 1.09%, so DFEN currently pays the higher dividend yield.
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