TECL vs. IAI

Last updated Jun 13, 2026

TECL (Direxion Daily Technology Bull 3X Shares) and IAI (iShares U.S. Broker-Dealers & Securities Exchanges ETF) are both exchange-traded funds - TECL is a Leveraged Equities fund tracking the Technology Select Sector Index (300%), while IAI is a Financials Equities fund tracking the DJ US Select / Investment Services. Both are passively managed. Over the past 10 years, TECL returned 51.70%/yr vs 19.37%/yr for IAI. A 0.64 correlation means they provide meaningful diversification when combined. TECL charges 0.91%/yr vs 0.41%/yr for IAI.

Performance

TECL vs. IAI - Performance Comparison

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

Returns By Period

In the year-to-date period, TECL achieves a 83.60% return, which is significantly higher than IAI's 3.17% return. Over the past 10 years, TECL has outperformed IAI with an annualized return of 51.70%, while IAI has yielded a comparatively lower 19.37% annualized return.

TECL

• 1D: 2.54%
• 1M: 4.73%
• YTD: 83.60%
• 6M: 83.93%
• 1Y: 190.47%
• 3Y*: 65.24%
• 5Y*: 36.48%
• 10Y*: 51.70%

IAI

• 1D: 1.83%
• 1M: 2.57%
• YTD: 3.17%
• 6M: 2.78%
• 1Y: 21.00%
• 3Y*: 28.06%
• 5Y*: 14.44%
• 10Y*: 19.37%

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

TECL vs. IAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TECL Direxion Daily Technology Bull 3X Shares	83.60%	38.60%	36.15%	203.14%	-74.32%	112.80%	69.46%	185.58%	-24.03%	124.82%
IAI iShares U.S. Broker-Dealers & Securities Exchanges ETF	3.17%	25.80%	34.37%	15.27%	-10.87%	40.48%	18.61%	24.26%	-9.47%	28.86%

Correlation

The correlation between TECL and IAI is 0.57, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.55
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.58
Correlation (All Time) Calculated using the full available price history since Dec 30, 2008	0.64

The correlation between TECL and IAI has been stable across timeframes, ranging from 0.55 to 0.64 - a consistent structural relationship.

TECL vs. IAI - Sectors Allocation Comparison

Sectors	TECL	IAI
Technology	20.6%	0.1%
Energy	0.0%	-
Industrials	0.0%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	99.9%
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

TECL vs. IAI — Risk / Return Rank

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

TECL

TECL Risk / Return Rank: 76
TECL Sharpe Ratio Rank: 90
TECL Sortino Ratio Rank: 69
TECL Omega Ratio Rank: 71
TECL Calmar Ratio Rank: 83
TECL Martin Ratio Rank: 67

IAI

IAI Risk / Return Rank: 29
IAI Sharpe Ratio Rank: 31
IAI Sortino Ratio Rank: 30
IAI Omega Ratio Rank: 29
IAI Calmar Ratio Rank: 27
IAI Martin Ratio Rank: 27

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.

TECL vs. IAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Technology Bull 3X Shares (TECL) and iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI). 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	IAI	Difference
Sharpe ratio: Return per unit of total volatility	2.66	1.00	+1.66
Sortino ratio: Return per unit of downside risk	2.69	1.43	+1.26
Omega ratio: Gain probability vs. loss probability	1.36	1.18	+0.19
Calmar ratio: Return relative to maximum drawdown	3.84	1.17	+2.67
Martin ratio: Return relative to average drawdown	10.73	3.33	+7.41

TECL vs. IAI - Sharpe Ratio Comparison

The current TECL Sharpe Ratio is 2.66, which is higher than the IAI Sharpe Ratio of 1.00. The chart below compares the historical Sharpe Ratios of TECL and IAI, 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. IAI - Drawdown Comparison

The maximum TECL drawdown since its inception was -77.96%, roughly equal to the maximum IAI drawdown of -75.46%. Use the drawdown chart below to compare losses from any high point for TECL and IAI.

Drawdown Indicators

	TECL	IAI	Difference
Max Drawdown Largest peak-to-trough decline	-77.96%	-75.46%	-2.50%
Max Drawdown (1Y) Largest decline over 1 year	-46.58%	-16.52%	-30.06%
Max Drawdown (3Y) Largest decline over 3 years	-66.58%	-23.14%	-43.44%
Max Drawdown (5Y) Largest decline over 5 years	-77.96%	-28.84%	-49.12%
Max Drawdown (10Y) Largest decline over 10 years	-77.96%	-40.38%	-37.58%
Current Drawdown Current decline from peak	-21.15%	-2.81%	-18.34%
Average Drawdown Average peak-to-trough decline	-18.38%	-22.63%	+4.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	16.64%	5.80%	+10.84%

Volatility

TECL vs. IAI - Volatility Comparison

Direxion Daily Technology Bull 3X Shares (TECL) has a higher volatility of 33.55% compared to iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) at 5.98%. This indicates that TECL's price experiences larger fluctuations and is considered to be riskier than IAI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TECL	IAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	33.55%	5.98%	+27.57%
Volatility (6M) Calculated over the trailing 6-month period	57.14%	15.34%	+41.80%
Volatility (1Y) Calculated over the trailing 1-year period	67.39%	19.44%	+47.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	74.94%	21.48%	+53.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	72.79%	22.85%	+49.94%

TECL vs. IAI - Expense Ratio Comparison

TECL has a 0.91% expense ratio, which is higher than IAI's 0.41% expense ratio.

Dividends

TECL vs. IAI - Dividend Comparison

TECL's dividend yield for the trailing twelve months is around 3.87%, more than IAI's 1.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IAI iShares U.S. Broker-Dealers & Securities Exchanges ETF	1.05%	0.95%	1.05%	1.80%	2.14%	1.31%	1.55%	1.52%	1.58%	1.37%	1.49%	1.31%
TECL Direxion Daily Technology Bull 3X Shares	3.87%	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 TECL and IAI in my portfolio?

TECL and IAI have a correlation of 0.57, 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 IAI?

TECL has higher volatility (33.55%) compared to IAI (5.98%). In terms of maximum drawdown, TECL dropped -77.96% vs IAI's -75.46%.

Which ETF is better, TECL or IAI?

On 10-year performance, TECL leads with 51.70% vs 19.37% for IAI. On fees, IAI is cheaper at 0.41% per year. On volatility, IAI has been the lower-risk option at 5.98%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TECL or IAI?

Over the 10-year period, TECL has performed better with a 51.70% return vs 19.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TECL or IAI?

IAI is cheaper with a 0.41% expense ratio, compared with 0.91% for TECL.

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

TECL has the higher dividend yield at 3.87%, compared with 1.05% for IAI.

What is the main difference between TECL and IAI?

TECL is categorized as Leveraged Equities, while IAI is Financials Equities. TECL tracks Technology Select Sector Index (300%), while IAI tracks DJ US Select / Investment Services. They also come from different issuers: Direxion and iShares. Their fees differ too: 0.91% for TECL and 0.41% for IAI.

Which has better risk-adjusted returns?

TECL currently has the higher Sharpe Ratio (2.66 vs 1.00), 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.