DFEN vs VOO
Direxion Daily Aerospace & Defense Bull 3X ETF vs Vanguard S&P 500 ETF
Which is better, DFEN or VOO?
Multi Alternative against Large Cap Blend.
VOO has a lower expense ratio. DFEN led over 3Y and 5Y, VOO over 1Y and the full window. VOO is less concentrated, with 37.6% 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 | VOO |
|---|---|---|
| Expense Ratio | 0.96% | 0.03%Best |
| AUM | $322M | $997.4B |
| Dividend Yield | 7.52% | 1.04% |
| Holdings | 59 | 509 |
| YTD Return | -27.17% | +13.21%Best |
| 1Y Return | -11.35% | +17.37%Best |
| 3Y Return (annualized) | +55.96%Best | +22.66% |
| 5Y Return (annualized) | +22.86%Best | +13.14% |
| Volatility (annualized) | 67.0% | 15.9%Best |
| Max Drawdown | -91.4% | -34.3%Best |
| $10,000 over 5 years | $27,993Best | $18,539 |
| Top 10 Weight | 79.5% | 37.6%Best |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) |
| Category | Alternative | Equity |
| Style | Multi Alternative | Large Cap Blend |
| Inception | May 3, 2017 | Sep 7, 2010 |
Volatility and max drawdown are measured over the window both funds cover: May 3, 2017 to Sep 24, 2026 (9.4 years).
DFEN vs VOO 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 VOO Performance
Direxion Daily Aerospace & Defense Bull 3X ETF (DFEN) is an ETF from Direxion Shares ETF Trust and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year DFEN returned -11.35% while VOO returned +17.37%. Year to date, DFEN is down 27.17% versus a gain of 13.21% for VOO.
Over three years, DFEN compounded at +55.96% per year against +22.66% for VOO; over five years the annualized figures are +22.86% and +13.14% respectively. Across the full 9-year window we track, VOO has the edge at +14.23% annualized vs +9.85%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFEN has been the more volatile fund, with annualized monthly volatility of 67.0% compared with 15.9% 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 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 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 7.52% against 1.04% for VOO.
Holdings Overlap
57.0% of DFEN's money is in holdings VOO also owns. 2.2% of VOO'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 494 in VOO, against full books of 59 and 509.
What only one of them owns
Our book lists 475 positions for VOO that do not appear in our book for DFEN (96.9% of the fund), and 37 for DFEN that do not appear in VOO (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 VOO | Difference |
|---|---|---|---|
| GEGeneral Electric Co. | 15.45% | 0.58% | 14.87% |
| RTXRaytheon Co. | 12.36% | 0.45% | 11.91% |
| BABoeing Co | 6.52% | 0.26% | 6.26% |
| GDGeneral Dynamics Corp. | 3.49% | 0.15% | 3.34% |
| LMTLockheed Martin Corp | 3.34% | 0.18% | 3.16% |
| HWMHowmet Aerospace Inc. | 3.29% | 0.18% | 3.11% |
| NOCNorthrop Grumman Corp. | 3.16% | 0.11% | 3.05% |
| TDGTransdigm Group Inc. | 3.07% | 0.11% | 2.96% |
| LHXL3Harris Technologies Inc. | 2.66% | 0.08% | 2.58% |
| AXONAxon Enterprise Inc | 2.26% | 0.07% | 2.19% |
57.0% of DFEN is already inside VOO.
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 VOO?
DFEN has an expense ratio of 0.96% while VOO charges 0.03%. VOO is the cheaper option, by $93 a year on a $10,000 investment.
Which performed better, DFEN or VOO?
Over the past year DFEN returned -11.35% vs +17.37% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (9 years), DFEN annualized +9.85% vs +14.23% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFEN or VOO?
DFEN has been the more volatile fund at 67.0% annualized versus 15.9% 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 0.70, 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 VOO?
57.0% of DFEN's money is in holdings VOO also owns. 2.2% of VOO'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 494 in VOO.
Which pays a higher dividend, DFEN or VOO?
DFEN yields 7.52% while VOO yields 1.04%, so DFEN currently pays the higher dividend yield.
Is VOO better than DFEN?
VOO has a lower expense ratio. DFEN led over 3Y and 5Y, VOO over 1Y and the full window. VOO is less concentrated, with 37.6% 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.