TECL vs. DFEN

Last updated Aug 5, 2026

TECL (Direxion Daily Technology Bull 3X Shares) and DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) are both Leveraged Equities funds from Direxion - TECL tracks the Technology Select Sector Index (300%) while DFEN tracks the Dow Jones U.S. Select Aerospace & Defense Index (300% Daily). Both are passively managed. Over the past 5 years, TECL returned 28.73%/yr vs 37.39%/yr for DFEN. Their 0.48 correlation means their historical movements had little consistent relationship. TECL charges 0.91%/yr vs 0.96%/yr for DFEN.

Performance

TECL vs. DFEN - Performance Comparison

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

Returns By Period

In the year-to-date period, TECL achieves a 77.71% return, which is significantly higher than DFEN's 34.59% return.

TECL

• 1D: 14.98%
• 1M: 6.72%
• 6M: 88.27%
• YTD: 77.71%
• 1Y: 117.04%
• 3Y*: 64.24%
• 5Y*: 28.73%
• 10Y*: 47.77%
• ALL TIME*: 48.13%

DFEN

• 1D: 5.36%
• 1M: 0.14%
• 6M: 5.54%
• YTD: 34.59%
• 1Y: 60.46%
• 3Y*: 75.84%
• 5Y*: 37.39%
• 10Y*: —
• ALL TIME*: 18.27%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	$14.48M	$12.71M	$15.04M
TECL Direxion Daily Technology Bull 3X Shares	$156.89M	$152.83M	$226.69M

TECL vs. DFEN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TECL Direxion Daily Technology Bull 3X Shares	77.71%	38.60%	36.15%	203.14%	-74.32%	112.80%	69.46%	185.58%	-24.03%	54.33%
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	34.59%	156.62%	27.07%	24.70%	6.99%	12.72%	-70.23%	95.09%	-32.86%	83.64%

Correlation

The correlation between TECL and DFEN is 0.37, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.37
Correlation (3Y) Balances recent behavior with more history.	0.40
Correlation (5Y) Shows whether the relationship held over a longer period.	0.48
Correlation (All Time) Calculated using the full available price history since May 3, 2017	0.48

The correlation between TECL and DFEN shifts across timeframes, from 0.37 (1 year) to 0.48 (all time), reflecting how their relationship changes across market environments.

TECL vs. DFEN - Sectors Allocation Comparison

Sectors	TECL	DFEN
Technology	99.2%	0.0%
Communication Services	0.8%	-
Energy	0.0%	-
Industrials	0.0%	18.5%
Basic Materials	-	0.4%
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

TECL vs. DFEN — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

TECL

TECL Risk / Return Rank: 54
TECL Sharpe Ratio Rank: 56
TECL Sortino Ratio Rank: 51
TECL Omega Ratio Rank: 50
TECL Calmar Ratio Rank: 65
TECL Martin Ratio Rank: 47

DFEN

DFEN Risk / Return Rank: 35
DFEN Sharpe Ratio Rank: 33
DFEN Sortino Ratio Rank: 38
DFEN Omega Ratio Rank: 35
DFEN Calmar Ratio Rank: 38
DFEN Martin Ratio Rank: 31

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

TECL vs. DFEN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Technology Bull 3X Shares (TECL) and Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	TECL	DFEN	Difference
Sharpe ratio: Return per unit of total volatility	1.52	0.89	+0.64
Sortino ratio: Return per unit of downside risk	2.05	1.56	+0.49
Omega ratio: Gain probability vs. loss probability	1.26	1.18	+0.07
Calmar ratio: Return relative to maximum drawdown	2.53	1.46	+1.07
Martin ratio: Return relative to average drawdown	5.97	3.06	+2.91

TECL vs. DFEN - Sharpe Ratio Comparison

The current TECL Sharpe Ratio is 1.52, which is higher than the DFEN Sharpe Ratio of 0.89. The chart below compares the historical Sharpe Ratios of TECL and DFEN, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

TECL vs. DFEN - Drawdown Comparison

The maximum TECL drawdown since its inception was -77.96%, smaller than the maximum DFEN drawdown of -91.36%. Use the drawdown chart below to compare losses from any high point for TECL and DFEN.

Drawdown Indicators

	TECL	DFEN	Difference
Max Drawdown Largest peak-to-trough decline	-77.96%	-91.36%	+13.40%
Max Drawdown (1Y) Largest decline over 1 year	-46.58%	-41.75%	-4.83%
Max Drawdown (3Y) Largest decline over 3 years	-66.58%	-43.13%	-23.45%
Max Drawdown (5Y) Largest decline over 5 years	-77.96%	-51.96%	-26.00%
Max Drawdown (10Y) Largest decline over 10 years	-77.96%	—	—
Current Drawdown Current decline from peak	-23.68%	-11.80%	-11.88%
Average Drawdown Average peak-to-trough decline	-18.45%	-44.85%	+26.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	19.69%	19.82%	-0.13%

Volatility

TECL vs. DFEN - Volatility Comparison

Direxion Daily Technology Bull 3X Shares (TECL) has a higher volatility of 30.57% compared to Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) at 23.28%. This indicates that TECL's price experiences larger fluctuations and is considered to be riskier than DFEN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TECL	DFEN	Difference
Volatility (1M) Calculated over the trailing 1-month period	30.57%	23.28%	+7.29%
Volatility (6M) Calculated over the trailing 6-month period	66.53%	56.03%	+10.50%
Volatility (1Y) Calculated over the trailing 1-year period	77.41%	68.48%	+8.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	76.96%	60.94%	+16.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	73.75%	71.61%	+2.14%

TECL vs. DFEN - Expense Ratio Comparison

TECL has a 0.91% expense ratio, which is lower than DFEN's 0.96% expense ratio.

Dividends

TECL vs. DFEN - Dividend Comparison

TECL's dividend yield for the trailing twelve months is around 4.01%, less than DFEN's 6.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares	6.59%	8.89%	14.12%	1.13%	0.46%	1.89%	0.48%	0.50%	1.07%	1.50%
TECL Direxion Daily Technology Bull 3X Shares	4.01%	7.19%	0.29%	0.28%	0.22%	0.32%	0.52%	0.25%	0.47%	0.10%

Frequently Asked Questions

Can I hold both TECL and DFEN in my portfolio?

TECL and DFEN have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TECL or DFEN?

TECL has higher volatility (30.57%) compared to DFEN (23.28%). In terms of maximum drawdown, TECL dropped -77.96% vs DFEN's -91.36%.

Which ETF is better, TECL or DFEN?

On 5-year performance, DFEN leads with 37.39% vs 28.73% for TECL. On fees, TECL is cheaper at 0.91% per year. On volatility, DFEN has been the lower-risk option at 23.28%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TECL or DFEN?

Over the 5-year period, DFEN has performed better with a 37.39% return vs 28.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TECL or DFEN?

TECL is cheaper with a 0.91% expense ratio, compared with 0.96% for DFEN.

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

DFEN has the higher dividend yield at 6.59%, compared with 4.01% for TECL.

What is the main difference between TECL and DFEN?

TECL tracks Technology Select Sector Index (300%), while DFEN tracks Dow Jones U.S. Select Aerospace & Defense Index (300% Daily). Their fees differ too: 0.91% for TECL and 0.96% for DFEN.

Which has better risk-adjusted returns?

TECL currently has the higher Sharpe Ratio (1.52 vs 0.89), 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.