ERX vs VOO
Direxion Daily Energy Bull 2X ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. ERX delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | ERX | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.91% | 0.03% | |
| AUM | $229M | $979.0B | |
| Dividend Yield | 1.85% | 1.09% | |
| Holdings | 29 | 509 | |
| YTD Return | +71.38% | +13.44% | |
| 1Y Return | +100.76% | +22.62% | |
| 3Y Return (annualized) | +17.09% | +21.47% | |
| 5Y Return (annualized) | +36.04% | +13.27% | |
| Volatility (annualized) | 65.6% | 14.1% | |
| Max Drawdown | -99.6% | -34.3% | |
| Fund Family | Direxion Shares ETF Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Nov 6, 2008 | Sep 7, 2010 |
ERX vs VOO Performance
Direxion Daily Energy Bull 2X ETF (ERX) 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 ERX returned +100.76% while VOO returned +22.62%. Year to date, ERX is up 71.38% versus a gain of 13.44% for VOO.
Over three years, ERX compounded at +17.09% per year against +21.47% for VOO; over five years the annualized figures are +36.04% and +13.27% respectively. Across the full 16-year window we track, VOO has the edge at +13.55% annualized vs -7.73%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ERX has been the more volatile fund, with annualized monthly volatility of 65.6% compared with 14.1% 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 -99.6% for ERX 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ERX charges 0.91% per year while VOO charges 0.03%. On a $10,000 position that is $91 vs $3 annually, a gap of $88 per year that compounds over a long holding period. On income, ERX currently yields 1.85% against 1.09% for VOO.
Holdings Overlap
ERX and VOO share 21 holdings out of 508 unique holdings combined, representing a 3.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ERX or VOO?
ERX has an expense ratio of 0.91% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $88 per year of difference.
Which performed better, ERX or VOO?
Over the past year ERX returned +100.76% vs +22.62% for VOO, so ERX leads on 1-year performance. Over the longest common window we track (16 years), ERX annualized -7.73% vs +13.55% for VOO. Past performance does not guarantee future results.
Which is riskier, ERX or VOO?
ERX has been the more volatile fund at 65.6% annualized versus 14.1% for VOO. Worst drawdown: ERX -99.6% vs VOO -34.3%.
Should I hold both ERX and VOO?
ERX and VOO have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ERX and VOO?
ERX and VOO share 21 common holdings with a 3.0% weight overlap. Combined, they hold 508 unique securities.
Which pays a higher dividend, ERX or VOO?
ERX yields 1.85% while VOO yields 1.09%, so ERX currently pays the higher dividend yield.
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