TECB vs. SOXL
Compare and contrast key facts about iShares U.S. Tech Breakthrough Multisector ETF (TECB) and Direxion Daily Semiconductor Bull 3x Shares (SOXL).
TECB and SOXL are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. TECB is a passively managed fund by iShares that tracks the performance of the NYSE FactSet U.S. Tech Breakthrough Index. It was launched on Jan 8, 2020. SOXL is a passively managed fund by Direxion that tracks the performance of the PHLX Semiconductor Index (300%). It was launched on Mar 11, 2010. Both TECB and SOXL 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: TECB or SOXL.
Key characteristics
| TECB | SOXL | |
|---|---|---|
| YTD Return | 9.60% | 31.54% |
| 1Y Return | 43.39% | 196.22% |
| 3Y Return (Ann) | 9.81% | 9.56% |
| Sharpe Ratio | 2.42 | 2.30 |
| Daily Std Dev | 17.72% | 84.92% |
| Max Drawdown | -41.62% | -90.46% |
| Current Drawdown | -2.85% | -42.54% |
Correlation
The correlation between TECB and SOXL is 0.85, 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
TECB vs. SOXL - Performance Comparison
In the year-to-date period, TECB achieves a 9.60% return, which is significantly lower than SOXL's 31.54% 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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TECB vs. SOXL - Expense Ratio Comparison
TECB has a 0.40% expense ratio, which is lower than SOXL's 0.99% expense ratio.
Risk-Adjusted Performance
TECB vs. SOXL - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Tech Breakthrough Multisector ETF (TECB) and Direxion Daily Semiconductor Bull 3x Shares (SOXL). 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
TECB vs. SOXL - Dividend Comparison
TECB's dividend yield for the trailing twelve months is around 0.24%, less than SOXL's 0.41% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
TECB iShares U.S. Tech Breakthrough Multisector ETF | 0.24% | 0.23% | 0.61% | 0.35% | 0.77% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
SOXL Direxion Daily Semiconductor Bull 3x Shares | 0.41% | 0.51% | 1.07% | 0.04% | 0.05% | 0.38% | 1.30% | 0.09% | 4.84% | 0.00% | 0.00% |
Drawdowns
TECB vs. SOXL - Drawdown Comparison
The maximum TECB drawdown since its inception was -41.62%, smaller than the maximum SOXL drawdown of -90.46%. Use the drawdown chart below to compare losses from any high point for TECB and SOXL. For additional features, visit the drawdowns tool.
Volatility
TECB vs. SOXL - Volatility Comparison
The current volatility for iShares U.S. Tech Breakthrough Multisector ETF (TECB) is 5.45%, while Direxion Daily Semiconductor Bull 3x Shares (SOXL) has a volatility of 27.33%. This indicates that TECB experiences smaller price fluctuations and is considered to be less risky than SOXL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.