Direxion Daily Aerospace & Defense Bull 3X Shares

DFEN

Market cap $480M

The Direxion Daily Aerospace & Defense Bull 3X Shares ( NYSEARCA:DFEN ) is a leveraged ETF designed to amplify daily moves in the aerospace and defense sector by 3x.

The US Department of War rules the skies. This aerial military supremacy has enforced the Trump Doctrine that has ended 8 international wars and kept US military casualties at zero.

Top Performing Leveraged/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.

Direxion Daily Aerospace & Defense Bull 3X Shares ETF offers 3x daily exposure to the Dow Jones U.S. Select Aerospace & Defense Index. Rising global defense budgets and improving aerospace production, notably Boeing's 737 ramp-up, support a bullish near-term outlook for the sector. DFEN's leveraged structure is best suited for daily trading; holding longer introduces compounding effects, volatility risks, and potential value decay.

On the surface, recent news that the Trump administration has been collaborating with Russia to devise a new peace plan for Ukraine potentially offers hope. Steve Witkoff, serving as Trump's envoy, is spearheading the drafting of the agreement and has held extensive talks with Russian envoy Kirill Dmitriev, according to an Axios report.

Top Performing Leveraged/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.

Global security concerns are driving massive inflows into defense sector ETFs. FactSet data showing a 573% surge in sector ETFs in 2025.

Global geopolitical risks continue to place an onus on nations to bolster spending to enhance their defensive capabilities. In turn, this continues to feed into strength for the aerospace and defense (A&D) sector, which creates plenty of opportunities for traders.

The top annual ETF performers share a common trait, the firm behind them and investors who are ready to trade no matter which direction the market goes.

AI spending garners plenty of attention. But it's got a long way to go to get anywhere near global defense expenditures.