DFEN vs FAS

DFENCDirexion Daily Aerospace & Defense Bull 3X Shares

FASADirexion Daily Financial Bull 3X ETF

In short

DFEN Most 3x bull funds ride broad benchmarks: the Dow, the Nasdaq, big banks. DFEN aims the same 300%-of-one-day machinery at a single industry, US aerospace and defense contractors. A day-trader's tool, reset every close.

FAS Born in November 2008 with the banking system on fire, FAS aims to deliver three times the daily move of the Financial Select Sector Index. A one-day tool on roughly 80 financial stocks, built around a single-day objective.

Stated mandate

DFEN The fund seeks daily investment results, before fees and expenses, equal to 300% of the performance of the Dow Jones U.S. Select Aerospace & Defense Index. The target applies for a single day, not as a promise of three times the index's cumulative return over longer periods.

FAS The fund seeks a daily return equal to three times the performance of the Financial Select Sector Index, before fees and expenses. It is designed for a single-day objective rather than a multiple of the index’s cumulative return over longer periods.

Why people hold it

• DFEN Industry-level leverage. Where cohort leaders like UDOW, QLD and FAS track broad markets or financials, DFEN targets one slice: the Dow Jones U.S. Select Aerospace & Defense Index.direxion.com
• 0.96% expense ratio, under the median for leveraged bull funds. Not cheap in absolute terms, but priced below the middle of a pricey category.
• The contract is spelled out: 300% of one day's index move, before fees, across roughly 40 defense and aerospace names. No discretion, no stock picking.direxion.com
• Live since 2017, and one of the stronger builds in a crowded leveraged-bull field on cost and trading friction.

• FAS Launched in November 2008, into the crisis itself, and still one of the strongest implementations in its 3x peer group.
• Costs 0.88% net of a waiver through September 1, 2027 (0.92% gross), below the median for 3x leveraged funds.
• A multi-billion-dollar fund that trades steadily, so the leverage arrives in a reasonably liquid wrapper.
• Straightforward plumbing: 3x the daily move of one named large-cap financials index, about 80 stocks, no stock-picking overlay.

Worth knowing

• DFEN The 3x target applies to a single day and resets at the close. Hold longer and choppy markets can pull results away from three times the index's move.
• Concentration on top of leverage: about 40 stocks in one industry, tripled daily. Defense headlines and budget news land hard here.
• Moderately traded rather than a headline-volume name, so spreads deserve a look before you place an order.

• FAS The 3x goal resets every day. Hold longer and compounding can push results away from three times the index's move over that stretch, especially in choppy markets.
• Leverage runs both directions: down days are magnified just as sharply, and this is one sector in one direction with no diversification cushion.
• Not the cheapest 3x on the shelf: SOXL runs 0.75% and TQQQ 0.78%, each net of waivers through September 1, 2027 and September 30, 2027.

Full DFEN profile⁠

Full FAS profile⁠