DFEN vs QQQ
Direxion Daily Aerospace & Defense Bull 3X ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. DFEN delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | DFEN | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.96% | 0.18% | |
| AUM | $408M | $455.8B | |
| Dividend Yield | 7.07% | 0.41% | |
| Holdings | 55 | 108 | |
| YTD Return | +20.59% | +19.68% | |
| 1Y Return | +61.91% | +26.75% | |
| 3Y Return (annualized) | +66.97% | +26.25% | |
| 5Y Return (annualized) | +33.88% | +15.39% | |
| Volatility (annualized) | 66.7% | 30.6% | |
| Max Drawdown | -91.4% | -83.0% | |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | May 3, 2017 | Mar 10, 1999 |
DFEN vs QQQ Performance
Direxion Daily Aerospace & Defense Bull 3X ETF (DFEN) is a ETF from Direxion Shares ETF Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DFEN returned +61.91% while QQQ returned +26.75%. Year to date, DFEN is up 20.59% versus a gain of 19.68% for QQQ.
Over three years, DFEN compounded at +66.97% per year against +26.25% for QQQ; over five years the annualized figures are +33.88% and +15.39% respectively. Across the full 9-year window we track, DFEN has the edge at +16.11% annualized vs +13.15%. 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 30.6% for QQQ. 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 -83.0% for QQQ. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DFEN charges 0.96% per year while QQQ charges 0.18%. On a $10,000 position that is $96 vs $18 annually, a gap of $78 per year that compounds over a long holding period. On income, DFEN currently yields 7.07% against 0.41% for QQQ.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, DFEN or QQQ?
DFEN has an expense ratio of 0.96% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $78 per year of difference.
Which performed better, DFEN or QQQ?
Over the past year DFEN returned +61.91% vs +26.75% for QQQ, so DFEN leads on 1-year performance. Over the longest common window we track (9 years), DFEN annualized +16.11% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, DFEN or QQQ?
DFEN has been the more volatile fund at 66.7% annualized versus 30.6% for QQQ. Worst drawdown: DFEN -91.4% vs QQQ -83.0%.
Should I hold both DFEN and QQQ?
DFEN and QQQ have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFEN and QQQ?
DFEN and QQQ share 2 common holdings with a 0.4% weight overlap. Combined, they hold 153 unique securities.
Which pays a higher dividend, DFEN or QQQ?
DFEN yields 7.07% while QQQ yields 0.41%, so DFEN currently pays the higher dividend yield.
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