At a glance
DFEN charges 0.96% a year. It has $384.1M in assets; it paid 12.27% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −34.8% with distributions reinvested (S&P 500: +11.5%); over three years it returned +55.7% a year. At its worst it fell 90.9% in the 2020 crash (S&P 500: 33.7%) and 52.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 64 months and 14 months after the lows. Its ten largest positions make up 50.7% of the fund, out of 48 in all.
The short version
Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) is a leveraged ETF. It aims to return three times the daily move of an S&P Dow Jones index of U.S. aerospace and defense stocks, such as GE Aerospace, RTX and Boeing. Its 3x exposure resets every day, so returns over weeks or years can differ sharply from three times the index. It charges 0.96% a year and fell more than 90% in early 2020.
Price history
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DFEN -34.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| DFEN official prospectus, to Dec 31, 2025 | — | +156.32% | — | +37.52% | — | +15.37% |
| DFEN price data to Oct 27, 2026 | -28.2% | -34.8% | +55.7% | +23.6% | — | +10.2% |
- Over the year to Oct 27, 2026, DFEN returned -34.8%.
- Its 5-year annualized return was +23.6%.
- In the 2020 COVID crash it fell 90.9% and regained its old high 63.8 months after the low.
- Its worst full calendar year was 2020 (-70.3%); its best was 2025 (+155.8%).
- The deepest fall in its price history was 91.4% (Feb 12, 2020 to Mar 23, 2020), recovered by Jul 30, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -28.2% | — |
| 2025 | +155.8% | +156.32% |
| 2024 | +27.6% | +27.72% |
| 2023 | +24.7% | +24.29% |
| 2022 | +7.0% | +7.26% |
| 2021 | +12.8% | +12.72% |
| 2020 | -70.3% | -70.35% |
| 2019 | +95.1% | +95.07% |
| 2018 | -32.9% | -32.71% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 90.9% over that stretch · deepest drop along the way 90.9%, back to its old high 63.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 35.2% over that stretch · deepest drop along the way 52%, back to its old high 14.4 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.0700 | |
| 2025 | $5.6800 | +46.8% |
| 2024 | $3.8700 | +1282.1% |
| 2023 | $0.2800 | +211.1% |
| 2022 | $0.0900 | -74.4% |
| 2021 | $0.3520 | +331.4% |
| 2020 | $0.0816 | -71.9% |
| 2019 | $0.2900 | -9.4% |
| 2018 | $0.3200 |
What's inside
As of Jul 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (32.93% of net assets), with its exposure coming from 7 swap and futures positions rather than from owning the stocks outright.
| Holding | Weight | |
|---|---|---|
| GENERAL ELECTRIC CO | 14.43% | |
| RTX CORP | 11.13% | |
| BOEING CO | 5.88% | |
| HOWMET AEROSPACE INC | 3.13% | |
| GENERAL DYNAMICS CORP | 3.11% | |
| LOCKHEED MARTIN CORP | 3.07% | |
| TRANSDIGM GROUP INC | 2.86% | |
| NORTHROP GRUMMAN CORP | 2.77% | |
| L3HARRIS TECHNOLOGIES INC | 2.40% | |
| AXON ENTERPRISE INC | 1.98% | |
| ROCKET LAB CORP | 1.54% | |
| CURTISS-WRIGHT CORP | 1.24% | |
| CARPENTER TECHNOLOGY | 1.20% | |
| ALLEGHENY TECHNOLOGIES | 1.19% | |
| WOODWARD INC | 1.00% |
By country
United States 65.34%By asset type
Stocks 65.34%What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $62.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +22.03%, +6.67%, -5.90%.
How it works
DFEN follows the Dow Jones U.S. Select Aerospace & Defense Index from S&P Dow Jones Indices. As of December 31, 2025, the index held 41 companies that make aircraft and parts, or defense gear such as radar and weapons. Bigger companies get bigger weights, based on the market value of shares available to public investors. The index rebalances quarterly. As of July 31, 2026, the fund's biggest stock positions were General Electric (14.4% of net assets), RTX (11.1%) and Boeing (5.9%).
The fund seeks 300% of the index's daily return, before fees. As of July 31, 2026, about 65% of net assets sat in index stocks. Swaps and futures supply the rest of the 3X exposure. In a swap, a bank passes the index's gains or losses to the fund; if the bank fails to pay, the fund loses money. Cash and short-term debt back these positions.
At each market close, Rafferty Asset Management resets exposure, buying more after the index rises and cutting back after it falls. Portfolio turnover was 90%. Because each day's result builds on the last, longer-term results will very likely differ from three times the index's, and the fund can lose money even when the index is flat or up. It is built for short-term trading, not buy-and-hold.
What it really costs
- DFEN charges 0.96% a year.
- Of that, 0.75% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $98 in the first year and $1,178 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| DFEN | $98 | $306 | $531 | $1,178 |
Structure and tax notes
- Resets its exposure every day. Over periods longer than a day, compounding means returns can differ sharply from 3× the index — usually worse in choppy markets. Built for short-term trading, not buy-and-hold.
In a retirement portfolio
The prospectus says DFEN aims for 3x the index only over a single trading day, and its losses have been severe and slow to recover.
DFEN launched in 2017, so it has no record from the 2008 financial crisis. In the 2020 COVID crash it fell 90.9% in about five weeks. It did not regain its prior peak until July 2025, about 64 months later. In 2022 it dropped 52% between March and September and took about 14 months to recover. Its worst calendar year was 2020, when it lost 70.35%. A retiree who had to cash out shares during a slump like that would turn temporary losses into permanent ones. The trailing 12-month yield was 12.27% as of October 27, 2026, paid quarterly, but payouts from a fund like this can swing widely. It charges 0.96% a year, which is $98 in the first year on $10,000 under the SEC's standard example. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Active traders who want magnified one-day bets on U.S. aerospace and defense stocks such as GE Aerospace, RTX and Boeing, and who check positions daily.
- Experienced investors who understand daily resets and compounding, and who can accept a fund that fell 91.4% between February and March 2020.
- Traders who accept a 0.96% expense ratio and swap counterparty risk in exchange for 3x daily exposure over short holding periods.
Look elsewhere if
- Retirees and long-term savers, since the fund took about 64 months to recover from its 2020 crash.
- Income seekers: the 12.27% trailing yield as of October 27, 2026, comes with 68.2% one-year volatility and payouts that can vary widely.
- Investors wanting broad diversification: the fund is non-diversified, with about 51% in its top ten holdings and 14.4% in GE Aerospace alone.
Close alternatives
Matched by leveraged/inverse funds on the same index (the index could not be identified from the name).
No close alternatives found.
Questions investors ask
Is DFEN good for long-term investing?
DFEN isn't designed for long-term holding. Its prospectus says it seeks 3x the index's return for a single trading day only. Compounding means longer-term results can differ sharply from that. It lost 91.4% between February and March 2020 and took about 64 months to recover. It has also had strong stretches: a 37.52% average annual return over five years as of December 31, 2025. Few long-term investors could sit through losses that deep.
Does DFEN pay dividends?
Yes. DFEN pays distributions quarterly. Over the 12 months to October 27, 2026, it paid $5.62 per share, a trailing yield of 12.27%. Payouts from a leveraged fund can change a lot from year to year, so a high trailing figure may not repeat. With one-year volatility of 68.2%, swings in the share price can easily outweigh the income it pays.
What is DFEN's expense ratio?
DFEN's expense ratio is 0.96% a year, according to its prospectus filed February 26, 2026. That includes a 0.75% management fee. Under the SEC's standard example, which assumes $10,000 invested and a 5% annual return, costs would be about $98 after one year, $306 after three, $531 after five and $1,178 after ten. The fund's 90% portfolio turnover also creates trading costs that aren't included in the expense ratio.
What stocks are in DFEN?
DFEN gets its exposure from U.S. aerospace and defense stocks. As of July 31, 2026, its largest holdings were GE Aerospace (14.4% of net assets), RTX (11.1%), Boeing (5.9%), Howmet Aerospace, General Dynamics, Lockheed Martin, TransDigm and Northrop Grumman. The top ten made up about 51%. The rest of its exposure comes from swap agreements on the index, backed by about 33% in cash and short-term holdings.
Why is DFEN so volatile?
DFEN is volatile because it triples the daily moves of a concentrated group of aerospace and defense stocks. It gained 156.32% in 2025, then fell 28.2% in 2026 through October 27. Its worst quarter was a loss of 82.56% in early 2020. Its one-year beta was 2.7, meaning it has moved about 2.7 times as much as the broad market. Government defense spending also drives much of this industry.