DFEN vs SPY
Direxion Daily Aerospace & Defense Bull 3X ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, DFEN or SPY?
Multi Alternative against Large Cap Blend.
SPY has a lower expense ratio. DFEN led over 3Y and 5Y, SPY over 1Y and the full window. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 79.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | DFEN | SPY |
|---|---|---|
| Expense Ratio | 0.96% | 0.09%Best |
| AUM | $322M | $804.7B |
| Dividend Yield | 7.52% | 0.98% |
| Holdings | 59 | 505 |
| YTD Return | -26.04% | +13.51%Best |
| 1Y Return | -8.91% | +18.19%Best |
| 3Y Return (annualized) | +58.13%Best | +23.29% |
| 5Y Return (annualized) | +22.41%Best | +13.21% |
| Volatility (annualized) | 66.9% | 15.9%Best |
| Max Drawdown | -91.4% | -34.1%Best |
| $10,000 over 5 years | $27,484Best | $18,596 |
| Top 10 Weight | 79.5% | 37.8%Best |
| Fund Family | Direxion Shares ETF Trust | State Street Investment Management |
| Category | Alternative | Equity |
| Style | Multi Alternative | Large Cap Blend |
| Inception | May 3, 2017 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: May 3, 2017 to Sep 25, 2026 (9.4 years).
DFEN vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 9.4 years both funds cover.
DFEN vs SPY Performance
Direxion Daily Aerospace & Defense Bull 3X ETF (DFEN) is an ETF from Direxion Shares ETF Trust and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year DFEN returned -8.91% while SPY returned +18.19%. Year to date, DFEN is down 26.04% versus a gain of 13.51% for SPY.
Over three years, DFEN compounded at +58.13% per year against +23.29% for SPY; over five years the annualized figures are +22.41% and +13.21% respectively. Across the full 9-year window we track, SPY has the edge at +14.20% annualized vs +10.02%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFEN has been the more volatile fund, with annualized monthly volatility of 66.9% compared with 15.9% 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 -34.1% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 0.98% for SPY.
Holdings Overlap
57.0% of DFEN's money is in holdings SPY also owns. 2.0% of SPY's money is in holdings DFEN also owns.
The two portfolios partly overlap.
12 positions in common, counted across the 50 positions we hold weights for in DFEN and 504 in SPY, against full books of 59 and 505.
What only one of them owns
Our book lists 485 positions for SPY that do not appear in our book for DFEN (97.3% of the fund), and 37 for DFEN that do not appear in SPY (45.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in DFEN | Weight in SPY | Difference |
|---|---|---|---|
| GEGeneral Electric Co. | 15.45% | 0.53% | 14.92% |
| RTXRaytheon Co. | 12.36% | 0.42% | 11.94% |
| BABoeing Co | 6.52% | 0.25% | 6.27% |
| GDGeneral Dynamics Corp. | 3.49% | 0.14% | 3.35% |
| LMTLockheed Martin Corp | 3.34% | 0.17% | 3.17% |
| HWMHowmet Aerospace Inc. | 3.29% | 0.15% | 3.14% |
| NOCNorthrop Grumman Corp. | 3.16% | 0.11% | 3.05% |
| TDGTransdigm Group Inc. | 3.07% | 0.10% | 2.97% |
| LHXL3Harris Technologies Inc. | 2.66% | 0.07% | 2.59% |
| AXONAxon Enterprise Inc | 2.26% | 0.06% | 2.20% |
57.0% of DFEN is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $87 a year on a $10,000 investment.
Which performed better, DFEN or SPY?
Over the past year DFEN returned -8.91% vs +18.19% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (9 years), DFEN annualized +10.02% vs +14.20% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFEN or SPY?
DFEN has been the more volatile fund at 66.9% annualized versus 15.9% for SPY. Worst drawdown: DFEN -91.4% vs SPY -34.1%.
Should I hold both DFEN and SPY?
DFEN and SPY have a monthly-return correlation of 0.70, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between DFEN and SPY?
57.0% of DFEN's money is in holdings SPY also owns. 2.0% of SPY's is in holdings DFEN also owns. They hold 12 positions in common, counted across the 50 positions we hold weights for in DFEN and 504 in SPY.
Which pays a higher dividend, DFEN or SPY?
DFEN yields 7.52% while SPY yields 0.98%, so DFEN currently pays the higher dividend yield.
Is SPY better than DFEN?
SPY has a lower expense ratio. DFEN led over 3Y and 5Y, SPY over 1Y and the full window. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 79.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.