The Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) is an exchange-traded fund designed to deliver three times (3x) the daily performance of an index composed of U.S. aerospace and defense companies. The ETF is managed by Direxion and trades under the ticker DFEN.

Classified as a leveraged sector equity ETF, the fund uses derivatives to amplify daily exposure to the U.S. aerospace and defense industry. Its objective is to provide 300% of the daily performance of its benchmark, before fees and expenses, and it is not designed to deliver that multiple over periods longer than one trading day.

The ETF follows an active management approach and seeks daily investment results equal to three times the performance of the Dow Jones U.S. Select Aerospace & Defense Index, a benchmark that tracks U.S. companies operating across the aerospace and defense industry.

Diversification and sector exposure

DFEN provides exposure primarily associated with:

• Aerospace.

• Defense.

• Military contractors.

• Industrial equipment.

• Aviation.

• National security.

• Defense technology.

• Leveraged strategies.

The fund is linked to companies involved in the manufacturing, development, and servicing of aircraft, defense systems, military equipment, and security-related technologies.

The ETF’s performance reflects both the daily movements of companies in the sector and the effects of leverage used by the strategy. Government defense spending, geopolitical tensions, commercial aviation demand, defense contracts, and investment in military technology may all influence the fund’s results.

Structure and costs

DFEN shares trade on the secondary market during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF’s market price with its net asset value (NAV).

The fund uses swaps, futures, and other financial instruments to obtain leveraged exposure to the benchmark, rebalancing daily to maintain its stated investment objective. The ETF charges a management fee as outlined in its prospectus and does not apply a performance fee.

History and evolution of the ETF

The Direxion Daily Aerospace & Defense Bull 3X Shares was launched in 2017 to provide leveraged daily exposure to the U.S. aerospace and defense sector. Since inception, the fund has become part of the tactical ETF segment used by investors seeking amplified exposure to specific areas of the U.S. market.

In recent years, geopolitical tensions, rising defense budgets, military modernization, aircraft demand, and advances in aerospace technologies have continued to influence the performance of the companies represented in the benchmark index.

Additional Information

Direxion Daily Aerospace & Defense Bull 3X Shares (United States) is an exchange-traded fund (ETF), with assets under management totaling $302.69 million.

Over the past 12 months, Direxion Daily Aerospace & Defense Bull 3X Shares recorded a return of -8.82%, with its price trading between $51.27 and $97.48 during the same period.

The ETF is traded under the ticker DFEN.