TDIV vs. TECL

Last updated Jun 4, 2026

TDIV (First Trust NASDAQ Technology Dividend Index Fund) and TECL (Direxion Daily Technology Bull 3X Shares) are both exchange-traded funds - TDIV is a Technology Equities fund tracking the NASDAQ Technology Dividend Index, while TECL is a Leveraged Equities fund tracking the Technology Select Sector Index (300%). Both are passively managed. Over the past 10 years, TDIV returned 19.34%/yr vs 54.49%/yr for TECL. Their correlation of 0.90 suggests significant overlap in exposure. TDIV charges 0.50%/yr vs 0.91%/yr for TECL.

Performance

TDIV vs. TECL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust NASDAQ Technology Dividend Index Fund (TDIV) and Direxion Daily Technology Bull 3X Shares (TECL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TDIV achieves a 30.57% return, which is significantly lower than TECL's 125.87% return. Over the past 10 years, TDIV has underperformed TECL with an annualized return of 19.34%, while TECL has yielded a comparatively higher 54.49% annualized return.

TDIV

• 1D: -1.79%
• 1M: 15.82%
• YTD: 30.57%
• 6M: 28.79%
• 1Y: 53.63%
• 3Y*: 33.27%
• 5Y*: 19.29%
• 10Y*: 19.34%

TECL

• 1D: -2.99%
• 1M: 73.10%
• YTD: 125.87%
• 6M: 118.69%
• 1Y: 267.85%
• 3Y*: 80.64%
• 5Y*: 43.44%
• 10Y*: 54.49%

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

TDIV vs. TECL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TDIV First Trust NASDAQ Technology Dividend Index Fund	30.57%	25.27%	24.43%	36.71%	-22.13%	29.49%	17.55%	33.27%	-3.18%	21.95%
TECL Direxion Daily Technology Bull 3X Shares	125.87%	38.60%	36.15%	203.14%	-74.32%	112.80%	69.46%	185.58%	-24.03%	124.82%

Correlation

The correlation between TDIV and TECL is 0.89, 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	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Aug 15, 2012	0.90

The correlation between TDIV and TECL has been stable across timeframes, ranging from 0.89 to 0.91 - a consistent structural relationship.

TDIV vs. TECL - Sectors Allocation Comparison

Sectors	TDIV	TECL
Technology	85.0%	20.4%
Communication Services	13.4%	-
Industrials	1.6%	0.0%
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	0.0%
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

TDIV vs. TECL — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TDIV

TDIV Risk / Return Rank: 83
TDIV Sharpe Ratio Rank: 86
TDIV Sortino Ratio Rank: 84
TDIV Omega Ratio Rank: 80
TDIV Calmar Ratio Rank: 87
TDIV Martin Ratio Rank: 79

TECL

TECL Risk / Return Rank: 85
TECL Sharpe Ratio Rank: 96
TECL Sortino Ratio Rank: 80
TECL Omega Ratio Rank: 79
TECL Calmar Ratio Rank: 90
TECL Martin Ratio Rank: 81

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.

TDIV vs. TECL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust NASDAQ Technology Dividend Index Fund (TDIV) 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.

	TDIV	TECL	Difference
Sharpe ratio: Return per unit of total volatility	2.93	4.35	-1.42
Sortino ratio: Return per unit of downside risk	3.85	3.66	+0.18
Omega ratio: Gain probability vs. loss probability	1.49	1.48	+0.01
Calmar ratio: Return relative to maximum drawdown	5.02	5.79	-0.77
Martin ratio: Return relative to average drawdown	15.64	16.63	-1.00
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TDIV vs. TECL - Sharpe Ratio Comparison

The current TDIV Sharpe Ratio is 2.93, which is lower than the TECL Sharpe Ratio of 4.35. The chart below compares the historical Sharpe Ratios of TDIV 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.

Sharpe Ratios by Period

	TDIV	TECL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.93	4.35	-1.42
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.94	0.59	+0.35
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.93	0.76	+0.17
Sharpe Ratio (All Time) Calculated using the full available price history	0.88	0.76	+0.12

Drawdowns

TDIV vs. TECL - Drawdown Comparison

The maximum TDIV drawdown since its inception was -31.97%, smaller than the maximum TECL drawdown of -77.96%. Use the drawdown chart below to compare losses from any high point for TDIV and TECL.

Drawdown Indicators

	TDIV	TECL	Difference
Max Drawdown Largest peak-to-trough decline	-31.97%	-77.96%	+45.99%
Max Drawdown (1Y) Largest decline over 1 year	-10.74%	-46.58%	+35.84%
Max Drawdown (3Y) Largest decline over 3 years	-23.00%	-66.58%	+43.58%
Max Drawdown (5Y) Largest decline over 5 years	-31.97%	-77.96%	+45.99%
Max Drawdown (10Y) Largest decline over 10 years	-31.97%	-77.96%	+45.99%
Current Drawdown Current decline from peak	-1.79%	-2.99%	+1.20%
Average Drawdown Average peak-to-trough decline	-4.84%	-18.38%	+13.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.44%	16.19%	-12.75%

Volatility

TDIV vs. TECL - Volatility Comparison

The current volatility for First Trust NASDAQ Technology Dividend Index Fund (TDIV) is 6.86%, while Direxion Daily Technology Bull 3X Shares (TECL) has a volatility of 20.70%. This indicates that TDIV 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.

Volatility by Period

	TDIV	TECL	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.86%	20.70%	-13.84%
Volatility (6M) Calculated over the trailing 6-month period	13.91%	49.83%	-35.92%
Volatility (1Y) Calculated over the trailing 1-year period	18.47%	62.17%	-43.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.67%	74.09%	-53.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.85%	72.35%	-51.50%

TDIV vs. TECL - Expense Ratio Comparison

TDIV has a 0.50% expense ratio, which is lower than TECL's 0.91% expense ratio.

Dividends

TDIV vs. TECL - Dividend Comparison

TDIV's dividend yield for the trailing twelve months is around 1.12%, less than TECL's 3.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TDIV First Trust NASDAQ Technology Dividend Index Fund	1.12%	1.40%	1.59%	1.74%	2.51%	1.76%	2.07%	2.27%	2.97%	2.27%	2.45%	2.52%
TECL Direxion Daily Technology Bull 3X Shares	3.15%	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

Can I hold both TDIV and TECL in my portfolio?

TDIV and TECL have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TDIV or TECL?

TECL has higher volatility (20.70%) compared to TDIV (6.86%). In terms of maximum drawdown, TDIV dropped -31.97% vs TECL's -77.96%.

Which ETF is better, TDIV or TECL?

On 10-year performance, TECL leads with 54.49% vs 19.34% for TDIV. On fees, TDIV is cheaper at 0.50% per year. On volatility, TDIV has been the lower-risk option at 6.86%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TDIV or TECL?

Over the 10-year period, TECL has performed better with a 54.49% return vs 19.34%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TDIV or TECL?

TDIV is cheaper with a 0.50% expense ratio, compared with 0.91% for TECL.

Which ETF pays a higher dividend yield, TDIV or TECL?

TECL has the higher dividend yield at 3.15%, compared with 1.12% for TDIV.

What is the main difference between TDIV and TECL?

TDIV is categorized as Technology Equities, while TECL is Leveraged Equities. TDIV tracks NASDAQ Technology Dividend Index, while TECL tracks Technology Select Sector Index (300%). They also come from different issuers: First Trust and Direxion. Their fees differ too: 0.50% for TDIV and 0.91% for TECL.

Which has better risk-adjusted returns?

TECL currently has the higher Sharpe Ratio (4.35 vs 2.93), 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.