SQQQ vs. TECS
Compare and contrast key facts about ProShares UltraPro Short QQQ (SQQQ) and Direxion Daily Technology Bear 3X Shares (TECS).
SQQQ and TECS are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SQQQ is a passively managed fund by ProShares that tracks the performance of the NASDAQ-100 Index (-300%). It was launched on Feb 9, 2010. TECS is a passively managed fund by Direxion that tracks the performance of the Technology Select Sector Index (-300%). It was launched on Dec 17, 2008. Both SQQQ and TECS are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: SQQQ or TECS.
Key characteristics
| SQQQ | TECS | |
|---|---|---|
| YTD Return | -51.13% | -53.19% |
| 1Y Return | -63.74% | -64.67% |
| 3Y Return (Ann) | -39.63% | -47.73% |
| 5Y Return (Ann) | -59.83% | -64.76% |
| 10Y Return (Ann) | -52.65% | -57.39% |
| Sharpe Ratio | -1.20 | -0.99 |
| Sortino Ratio | -2.21 | -1.76 |
| Omega Ratio | 0.76 | 0.81 |
| Calmar Ratio | -0.63 | -0.64 |
| Martin Ratio | -1.44 | -1.46 |
| Ulcer Index | 43.59% | 44.11% |
| Daily Std Dev | 52.39% | 64.79% |
| Max Drawdown | -100.00% | -100.00% |
| Current Drawdown | -100.00% | -100.00% |
Correlation
The correlation between SQQQ and TECS is 0.89, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
SQQQ vs. TECS - Performance Comparison
The year-to-date returns for both stocks are quite close, with SQQQ having a -51.13% return and TECS slightly lower at -53.19%. Over the past 10 years, SQQQ has outperformed TECS with an annualized return of -52.65%, while TECS has yielded a comparatively lower -57.39% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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SQQQ vs. TECS - Expense Ratio Comparison
SQQQ has a 0.95% expense ratio, which is lower than TECS's 1.08% expense ratio.
Risk-Adjusted Performance
SQQQ vs. TECS - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for ProShares UltraPro Short QQQ (SQQQ) and Direxion Daily Technology Bear 3X Shares (TECS). 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.
Dividends
SQQQ vs. TECS - Dividend Comparison
SQQQ's dividend yield for the trailing twelve months is around 10.07%, more than TECS's 4.84% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|
SQQQ ProShares UltraPro Short QQQ | 10.07% | 8.01% | 0.06% | 0.00% | 2.15% | 2.92% | 1.47% | 0.14% |
TECS Direxion Daily Technology Bear 3X Shares | 4.84% | 5.73% | 0.00% | 0.00% | 0.15% | 1.35% | 0.33% | 0.00% |
Drawdowns
SQQQ vs. TECS - Drawdown Comparison
The maximum SQQQ drawdown since its inception was -100.00%, roughly equal to the maximum TECS drawdown of -100.00%. Use the drawdown chart below to compare losses from any high point for SQQQ and TECS. For additional features, visit the drawdowns tool.
Volatility
SQQQ vs. TECS - Volatility Comparison
The current volatility for ProShares UltraPro Short QQQ (SQQQ) is 15.52%, while Direxion Daily Technology Bear 3X Shares (TECS) has a volatility of 18.24%. This indicates that SQQQ experiences smaller price fluctuations and is considered to be less risky than TECS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.