DFEN vs VOO
Direxion Daily Aerospace & Defense Bull 3X ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. DFEN delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | DFEN | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.96% | 0.03% | |
| AUM | $408M | $979.0B | |
| Dividend Yield | 7.07% | 1.09% | |
| Holdings | 55 | 509 | |
| YTD Return | +20.59% | +14.48% | |
| 1Y Return | +61.91% | +22.02% | |
| 3Y Return (annualized) | +66.97% | +21.80% | |
| 5Y Return (annualized) | +33.88% | +13.36% | |
| Volatility (annualized) | 66.7% | 14.2% | |
| Max Drawdown | -91.4% | -34.3% | |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | May 3, 2017 | Sep 7, 2010 |
DFEN vs VOO Performance
Direxion Daily Aerospace & Defense Bull 3X ETF (DFEN) is a ETF from Direxion Shares ETF Trust and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year DFEN returned +61.91% while VOO returned +22.02%. Year to date, DFEN is up 20.59% versus a gain of 14.48% for VOO.
Over three years, DFEN compounded at +66.97% per year against +21.80% for VOO; over five years the annualized figures are +33.88% and +13.36% respectively. Across the full 9-year window we track, DFEN has the edge at +16.11% annualized vs +13.61%. 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 14.2% for VOO. 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 -34.3% for VOO. 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 VOO 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 VOO.
Holdings Overlap
DFEN and VOO 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 VOO?
DFEN has an expense ratio of 0.96% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $93 per year of difference.
Which performed better, DFEN or VOO?
Over the past year DFEN returned +61.91% vs +22.02% for VOO, so DFEN leads on 1-year performance. Over the longest common window we track (9 years), DFEN annualized +16.11% vs +13.61% for VOO. Past performance does not guarantee future results.
Which is riskier, DFEN or VOO?
DFEN has been the more volatile fund at 66.7% annualized versus 14.2% for VOO. Worst drawdown: DFEN -91.4% vs VOO -34.3%.
Should I hold both DFEN and VOO?
DFEN and VOO 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 VOO?
DFEN and VOO share 12 common holdings with a 2.1% weight overlap. Combined, they hold 545 unique securities.
Which pays a higher dividend, DFEN or VOO?
DFEN yields 7.07% while VOO yields 1.09%, so DFEN currently pays the higher dividend yield.
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