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IYW vs. TECL
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IYW vs. TECL

Last updated Jun 5, 2026

IYW (iShares U.S. Technology ETF) and TECL (Direxion Daily Technology Bull 3X Shares) are both exchange-traded funds - IYW is a Technology Equities fund tracking the Russell 1000 Technology RIC 22.5/45 Capped Index, while TECL is a Leveraged Equities fund tracking the Technology Select Sector Index (300%). Both are passively managed. Over the past 10 years, IYW returned 26.00%/yr vs 53.62%/yr for TECL. With a 0.98 correlation, they move nearly in lockstep. IYW charges 0.38%/yr vs 0.91%/yr for TECL.

Performance

IYW vs. TECL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Technology ETF (IYW) and Direxion Daily Technology Bull 3X Shares (TECL). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, IYW achieves a 28.46% return, which is significantly lower than TECL's 115.57% return. Over the past 10 years, IYW has underperformed TECL with an annualized return of 26.00%, while TECL has yielded a comparatively higher 53.62% annualized return.

IYW

1D
-0.44%
1M
13.87%
YTD
28.46%
6M
27.22%
1Y
58.25%
3Y*
35.17%
5Y*
22.76%
10Y*
26.00%

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%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IYW vs. TECL - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IYW
iShares U.S. Technology ETF		28.46%25.38%30.25%65.44%-34.83%35.44%47.45%46.64%-0.93%36.60%
TECL
Direxion Daily Technology Bull 3X Shares		115.57%38.60%36.15%203.14%-74.32%112.80%69.46%185.58%-24.03%124.82%

Correlation

The correlation between IYW and TECL is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.98

Correlation (3Y)
Calculated over the trailing 3-year period

0.98

Correlation (5Y)
Calculated over the trailing 5-year period

0.98

Correlation (10Y)
Calculated over the trailing 10-year period

0.98

Correlation (All Time)
Calculated using the full available price history since Dec 31, 2008

0.98

The correlation between IYW and TECL has been stable across timeframes, ranging from 0.98 to 0.98 - a consistent structural relationship.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares U.S. Technology ETF

Direxion Daily Technology Bull 3X Shares

Often compared with IYW:
IYW vs. VGTIYW vs. QQQIYW vs. XLKIYW vs. IGMIYW vs. SMHIYW vs. IWFIYW vs. SOXX
Often compared with TECL:
TECL vs. TQQQTECL vs. SOXLTECL vs. TECSTECL vs. QQQTECL vs. FNGUTECL vs. BULZTECL vs. VGT

Return for Risk

IYW vs. TECL — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IYW
IYW Risk / Return Rank: 7676
Overall Rank
IYW Sharpe Ratio Rank: 8888
Sharpe Ratio Rank
IYW Sortino Ratio Rank: 8282
Sortino Ratio Rank
IYW Omega Ratio Rank: 8080
Omega Ratio Rank
IYW Calmar Ratio Rank: 6767
Calmar Ratio Rank
IYW Martin Ratio Rank: 6161
Martin Ratio Rank
TECL
TECL Risk / Return Rank: 8484
Overall Rank
TECL Sharpe Ratio Rank: 9696
Sharpe Ratio Rank
TECL Sortino Ratio Rank: 7979
Sortino Ratio Rank
TECL Omega Ratio Rank: 7878
Omega Ratio Rank
TECL Calmar Ratio Rank: 8989
Calmar Ratio Rank
TECL Martin Ratio Rank: 8080
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

IYW vs. TECL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Technology ETF (IYW) 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.

IYWTECLDifference
Sharpe ratioReturn per unit of total volatility
2.92
4.03

-1.12

Sortino ratioReturn per unit of downside risk
3.63
3.52

+0.12

Omega ratioGain probability vs. loss probability

1.47

1.46

+0.02

Calmar ratioReturn relative to maximum drawdown

3.29

5.39

-2.10

Martin ratioReturn relative to average drawdown

10.76

15.48

-4.72

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IYW vs. TECL - Sharpe Ratio Comparison

The current IYW Sharpe Ratio is 2.92, which is comparable to the TECL Sharpe Ratio of 4.03. The chart below compares the historical Sharpe Ratios of IYW and TECL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

IYWTECLDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.92

4.03

-1.12

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.88

0.57

+0.31

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

1.04

0.74

+0.30

Sharpe Ratio (All Time)

Calculated using the full available price history

0.35

0.76

-0.40

Drawdowns

IYW vs. TECL - Drawdown Comparison

The maximum IYW drawdown since its inception was -81.90%, which is greater than TECL's maximum drawdown of -77.96%. Use the drawdown chart below to compare losses from any high point for IYW and TECL.

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Drawdown Indicators

IYWTECLDifference

Max Drawdown

Largest peak-to-trough decline

-81.90%

-77.96%

-3.94%

Max Drawdown (1Y)

Largest decline over 1 year

-17.81%

-46.58%

+28.77%

Max Drawdown (3Y)

Largest decline over 3 years

-26.47%

-66.58%

+40.11%

Max Drawdown (5Y)

Largest decline over 5 years

-39.44%

-77.96%

+38.52%

Max Drawdown (10Y)

Largest decline over 10 years

-39.44%

-77.96%

+38.52%

Current Drawdown

Current decline from peak

-1.35%

-7.42%

+6.07%

Average Drawdown

Average peak-to-trough decline

-34.65%

-18.38%

-16.27%

Ulcer Index

Depth and duration of drawdowns from previous peaks

5.43%

16.19%

-10.76%

Volatility

IYW vs. TECL - Volatility Comparison

The current volatility for iShares U.S. Technology ETF (IYW) is 6.28%, while Direxion Daily Technology Bull 3X Shares (TECL) has a volatility of 21.53%. This indicates that IYW 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

IYWTECLDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.28%

21.53%

-15.25%

Volatility (6M)

Calculated over the trailing 6-month period

15.84%

50.05%

-34.21%

Volatility (1Y)

Calculated over the trailing 1-year period

20.07%

62.27%

-42.20%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

25.86%

74.08%

-48.22%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

25.09%

72.35%

-47.26%

IYW vs. TECL - Expense Ratio Comparison

IYW has a 0.38% expense ratio, which is lower than TECL's 0.91% expense ratio.

Dividends

IYW vs. TECL - Dividend Comparison

IYW's dividend yield for the trailing twelve months is around 0.11%, less than TECL's 3.30% yield.

PositionTTM20252024202320222021202020192018201720162015
IYW
iShares U.S. Technology ETF		0.11%0.14%0.21%0.34%0.50%0.31%0.56%0.72%0.92%0.82%1.14%1.12%
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%0.00%0.00%

Frequently Asked Questions

With a correlation of 0.98, IYW 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 IYW (6.28%). In terms of maximum drawdown, IYW dropped -81.90% vs TECL's -77.96%.

On 10-year performance, TECL leads with 53.62% vs 26.00% for IYW. On fees, IYW is cheaper at 0.38% per year. On volatility, IYW has been the lower-risk option at 6.28%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, TECL has performed better with a 53.62% return vs 26.00%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

IYW is cheaper with a 0.38% expense ratio, compared with 0.91% for TECL.

TECL has the higher dividend yield at 3.30%, compared with 0.11% for IYW.

IYW is categorized as Technology Equities, while TECL is Leveraged Equities. IYW tracks Russell 1000 Technology RIC 22.5/45 Capped Index, while TECL tracks Technology Select Sector Index (300%). They also come from different issuers: iShares and Direxion. Their fees differ too: 0.38% for IYW and 0.91% for TECL.

TECL currently has the higher Sharpe Ratio (4.03 vs 2.92), 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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