The Direxion Daily Aerospace & Defense Bull 3X Shares aims to triple the daily return of an index of defense industry stocks like Boeing, United Technologies, Lockheed Martin and Raytheon.
DFEN, like all leveraged products, is designed for short-term trading by sophisticated investors. DFEN rebalances daily, which means its performance over longer time periods will diverge significantly from the underlying stocks. The daily reset means that DFEN could lose money over time even if the underlying equities have posted a gain, which can come as a rude surprise to buy-and-hold investors who don’t read the fine print.
DFEN is ideal for traders looking for a way to place an ultra-short-term high-conviction wager on a rally in defense industry stocks. The management fee of 99 basis points might seem high in the world of passive investments, but it’s in line with other leveraged products and shouldn’t be a major concern for traders who plan to cash out of their positions quickly.
For longer-term investors who want passive exposure to defense stocks without the complications of leverage, BlackRock’s iShares U.S. Aerospace & Defense ETF (ITA) tracks the same underlying index as DFEN, and State Street’s SPDR S&P Aerospace and Defense ETF (XAR) tracks an MSCI index and invests in many of the same companies. XAR charges a fee of 35 basis points, which is high for an index-tracking ETF but cheaper than competitors including ITA, FITE, PPA and ROKT.
| Segment | Leveraged Equity: U.S. Aerospace & Defense |
| Category | Sector |
| Focus | Industrials |
| Niche | Aerospace & Defense |
| Strategy | Vanilla |
| Weighting Scheme | Market Cap |
This section compares how balanced and deep this ETF is relative to its peers.
| DFEN | ETF Database Category Average | FactSet Segment Average | |
|---|---|---|---|
| Number of Holdings | 34 | 111 | 34 |
| % of Assets in Top 10 | 79.28% | 65.38% | 79.28% |
| % of Assets in Top 15 | 90.40% | 69.10% | 90.40% |
| % of Assets in Top 50 | 100.04% | 78.32% | 100.04% |
| DFEN | ETF Database Category Average | FactSet Segment Average | |
|---|---|---|---|
| Large (>12.9B) | N/A | 2.87% | N/A |
| Mid (>2.7B) | N/A | 0.05% | N/A |
| Small (>600M) | N/A | 0.00% | N/A |
| Micro (<600M) | N/A | 0.00% | N/A |
This section compares the P/E ratio of this ETF to its peers.
This section compares the dividend yield of this ETF to its peers.
| DFEN | ETF Database Category Average | FactSet Segment Average | |
|---|---|---|---|
| Dividend | $ 0.06 | $ 0.13 | $ 0.06 |
| Dividend Date | 2023-09-19 | N/A | N/A |
| Annual Dividend Rate | $ 0.22 | $ 0.33 | $ 0.22 |
| Annual Dividend Yield | 1.49% | 0.90% | 1.49% |
View charts featuring DFEN price and volume data.
View charts featuring ETF fund flow data.
5 Day Net Flows: 3.05 M 1 Month Net Flows: 14.04 M 3 Month Net Flows: -645.55 K 6 Month Net Flows: -16.93 M 1 Year Net Flows: -49.54 M 3 Year Net Flows: -234.46 M 5 Year Net Flows: -15.39 M 10 Year Net Flows: 20.91 MView charts that break down the influence that fund flows and price had on overall assets.
5 Day Net AUM Change: -7.4 MThe adjacent table gives investors an individual Realtime Rating for DFEN on several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETF Database Pro members, shows the ETF in the Leveraged Equities with the highest Metric Realtime Rating for each individual field. To view all of this data, sign up for a free 14-day trial for ETF Database Pro. To view information on how the ETF Database Realtime Ratings work, click here.
This section compares the cost efficiency of this ETF to its peers.
| Max ST Capital Gains Rate | 39.60% |
| Max LT Capital Gains Rate | 20.00% |
| Tax On Distributions | Ordinary income |
| Distributes K1 | No |
This section shows how this ETF has performed relative to its peers. Returns over 1 year are annualized.
| DFEN |
ETF Database
Category Average |
Factset Segment
Average |
|
|---|---|---|---|
| 1 Month Return | -18.32% | -2.74% | -18.32% |
| 3 Month Return | -21.19% | -3.54% | -21.19% |
| YTD Return | -23.06% | 25.61% | -23.06% |
| 1 Year Return | 21.13% | 19.97% | 21.13% |
| 3 Year Return | 16.75% | 5.75% | 16.75% |
| 5 Year Return | -23.04% | -3.66% | -23.04% |
The following charts reflect the geographic spread of DFEN's underlying holdings.
The following charts reflect the allocation of DFEN's underlying holdings.
This section shows how the volatility of this ETF compares to the peer group ETF Database Category.
| 5 Day Volatility | 181.57% |
| 20 Day Volatility | 38.20% |
| 50 Day Volatility | 43.22% |
| 200 Day Volatility | 44.18% |
| Beta | 2.99 |
| Standard Deviation | 2.31% |
ETF Database's Financial Advisor Reports are designed as an easy handout for clients to explain the key information on a fund. Includes new analyst insights and classification data.
Fact sheets are issued by the ETF provider and framed by ETF Database. Information contained within the fact sheet is not guaranteed to be timely or accurate.
Here is a look at ETFs that currently offer attractive short selling opportunities.
The ETFs...
Here is a look at ETFs that currently offer attractive short buying opportunities.
The ETFs...
Here is a look at ETFs that currently offer attractive short buying opportunities.
The ETFs...
ETF Trends and ETF Database , the preeminent digital platforms for ETF news, research, tools, video, webcasts, native content channels, and more. The ETF Trends and ETF Database brands have been trusted amongst advisors, institutional investors, and individual investors for a combined 25 years. The firms are uniquely positioned to aid advisor’s education, adoption, and usage of ETFs, as well as the asset management community’s transition from traditionally analog to digital interactions with the advisor community.
Our team at ETF Database is committed to making our website the premier source of information on ETF investing with the world’s highest quality ETF tools, content, and resources.
ETF Database analysts have a combined 50 years in the ETF and Financial markets, covering every asset class and investment style. The team monitors new filings, new launches and new issuers to make sure we place each new ETF in the appropriate context so Financial Advisors can construct high quality portfolios.
Copyright © 2023 FactSet Research Systems Inc. All rights reserved.
A long-running debate in asset allocation circles is how much of a portfolio an investor should...
In a digital age where information moves in milliseconds and millions of participants can transact...