DFEN vs SPY
Direxion Daily Aerospace & Defense Bull 3X ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | DFEN | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.96% | 0.09% | |
| AUM | $356M | $814.4B | |
| Dividend Yield | 7.52% | 1.01% | |
| Holdings | 59 | 505 | |
| YTD Return | -11.95% | +13.78% | |
| 1Y Return | +19.10% | +21.44% | |
| 3Y Return (annualized) | +53.74% | +21.38% | |
| 5Y Return (annualized) | +27.74% | +12.80% | |
| Volatility (annualized) | 66.6% | 15.2% | |
| Max Drawdown | -91.4% | -56.5% | |
| Fund Family | Direxion Shares ETF Trust | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | May 3, 2017 | Jan 22, 1993 |
DFEN vs SPY Performance
Direxion Daily Aerospace & Defense Bull 3X ETF (DFEN) is a ETF from Direxion Shares ETF Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year DFEN returned +19.10% while SPY returned +21.44%. Year to date, DFEN is down 11.95% versus a gain of 13.78% for SPY.
Over three years, DFEN compounded at +53.74% per year against +21.38% for SPY; over five years the annualized figures are +27.74% and +12.80% respectively. Across the full 9-year window we track, DFEN has the edge at +12.17% annualized vs +8.83%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFEN has been the more volatile fund, with annualized monthly volatility of 66.6% compared with 15.2% for SPY. 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 SPY. 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFEN charges 0.96% per year while SPY charges 0.09%. On a $10,000 position that is $96 vs $9 annually, a gap of $87 per year that compounds over a long holding period. On income, DFEN currently yields 7.52% against 1.01% for SPY.
Holdings Overlap
DFEN and SPY share 12 holdings out of 544 unique holdings combined, representing a 2.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DFEN or SPY?
DFEN has an expense ratio of 0.96% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $87 per year of difference.
Which performed better, DFEN or SPY?
Over the past year DFEN returned +19.10% vs +21.44% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (9 years), DFEN annualized +12.17% vs +8.83% for SPY. Past performance does not guarantee future results.
Which is riskier, DFEN or SPY?
DFEN has been the more volatile fund at 66.6% annualized versus 15.2% for SPY. Worst drawdown: DFEN -91.4% vs SPY -56.5%.
Should I hold both DFEN and SPY?
DFEN and SPY have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFEN and SPY?
DFEN and SPY share 12 common holdings with a 2.2% weight overlap. Combined, they hold 544 unique securities.
Which pays a higher dividend, DFEN or SPY?
DFEN yields 7.52% while SPY yields 1.01%, so DFEN currently pays the higher dividend yield.
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