FAI vs. TECL
FAI (First Trust Bloomberg Artificial Intelligence ETF) and TECL (Direxion Daily Technology Bull 3X Shares) are both exchange-traded funds - FAI is a Technology Equities fund tracking the Bloomberg Artificial Intelligence Index, while TECL is a Leveraged Equities fund tracking the Technology Select Sector Index (300%). Both are passively managed. Over the past year, FAI returned 72.81% vs 249.35% for TECL. Their correlation of 0.94 suggests significant overlap in exposure. FAI charges 0.65%/yr vs 0.91%/yr for TECL.
Performance
FAI vs. TECL - Performance Comparison
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Returns By Period
In the year-to-date period, FAI achieves a 36.77% return, which is significantly lower than TECL's 115.57% return.
FAI
- 1D
- -1.66%
- 1M
- 17.27%
- YTD
- 36.77%
- 6M
- 35.51%
- 1Y
- 72.81%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
TECL
- 1D
- -4.56%
- 1M
- 55.10%
- YTD
- 115.57%
- 6M
- 106.65%
- 1Y
- 249.35%
- 3Y*
- 78.93%
- 5Y*
- 42.11%
- 10Y*
- 53.62%
FAI vs. TECL - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
FAI First Trust Bloomberg Artificial Intelligence ETF | 36.77% | 33.37% | 2.06% |
TECL Direxion Daily Technology Bull 3X Shares | 115.57% | 38.60% | -3.22% |
Correlation
The correlation between FAI and TECL is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.94 |
Correlation (All Time) Calculated using the full available price history since Nov 22, 2024 | 0.94 |
The correlation between FAI and TECL has been stable across timeframes, ranging from 0.94 to 0.94 - a consistent structural relationship.
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Return for Risk
FAI vs. TECL — Risk / Return Rank
FAI
TECL
FAI vs. TECL - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Bloomberg Artificial Intelligence ETF (FAI) and Direxion Daily Technology Bull 3X Shares (TECL). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| FAI | TECL | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.04 | ||
| Sortino ratioReturn per unit of downside risk | +0.06 | ||
| Omega ratioGain probability vs. loss probability | 1.47 | 1.46 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 3.88 | 5.39 | -1.51 |
| Martin ratioReturn relative to average drawdown | 12.65 | 15.48 | -2.82 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| FAI | TECL | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.99 | 4.03 | -1.04 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 0.57 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.74 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.70 | 0.76 | +0.94 |
Drawdowns
FAI vs. TECL - Drawdown Comparison
The maximum FAI drawdown since its inception was -27.82%, smaller than the maximum TECL drawdown of -77.96%. Use the drawdown chart below to compare losses from any high point for FAI and TECL.
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Drawdown Indicators
| FAI | TECL | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -27.82% | -77.96% | +50.14% |
Max Drawdown (1Y)Largest decline over 1 year | -18.84% | -46.58% | +27.74% |
Max Drawdown (3Y)Largest decline over 3 years | — | -66.58% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -77.96% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -77.96% | — |
Current DrawdownCurrent decline from peak | -2.85% | -7.42% | +4.57% |
Average DrawdownAverage peak-to-trough decline | -5.30% | -18.38% | +13.08% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.77% | 16.19% | -10.42% |
Volatility
FAI vs. TECL - Volatility Comparison
The current volatility for First Trust Bloomberg Artificial Intelligence ETF (FAI) is 8.57%, while Direxion Daily Technology Bull 3X Shares (TECL) has a volatility of 21.53%. This indicates that FAI experiences smaller price fluctuations and is considered to be less risky than TECL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAI | TECL | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.57% | 21.53% | -12.96% |
Volatility (6M)Calculated over the trailing 6-month period | 19.40% | 50.05% | -30.65% |
Volatility (1Y)Calculated over the trailing 1-year period | 24.47% | 62.27% | -37.80% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 29.89% | 74.08% | -44.19% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 29.89% | 72.35% | -42.46% |
FAI vs. TECL - Expense Ratio Comparison
FAI has a 0.65% expense ratio, which is lower than TECL's 0.91% expense ratio.
Dividends
FAI vs. TECL - Dividend Comparison
FAI has not paid dividends to shareholders, while TECL's dividend yield for the trailing twelve months is around 3.30%.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
FAI First Trust Bloomberg Artificial Intelligence ETF | 0.00% | 0.00% | 0.04% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
TECL Direxion Daily Technology Bull 3X Shares | 3.30% | 7.19% | 0.29% | 0.28% | 0.22% | 0.32% | 0.52% | 0.25% | 0.47% | 0.10% |
Frequently Asked Questions
With a correlation of 0.94, FAI and TECL move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
TECL has higher volatility (21.53%) compared to FAI (8.57%). In terms of maximum drawdown, FAI dropped -27.82% vs TECL's -77.96%.
On 1-year performance, TECL leads with 249.35% vs 72.81% for FAI. On fees, FAI is cheaper at 0.65% per year. On volatility, FAI has been the lower-risk option at 8.57%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, TECL has performed better with a 249.35% return vs 72.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FAI is cheaper with a 0.65% expense ratio, compared with 0.91% for TECL.
TECL has the higher dividend yield at 3.30%, compared with 0.00% for FAI.
FAI is categorized as Technology Equities, while TECL is Leveraged Equities. FAI tracks Bloomberg Artificial Intelligence Index, while TECL tracks Technology Select Sector Index (300%). They also come from different issuers: First Trust and Direxion. Their fees differ too: 0.65% for FAI and 0.91% for TECL.
TECL currently has the higher Sharpe Ratio (4.03 vs 2.99), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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