TECL vs. QQQ
Compare and contrast key facts about Direxion Daily Technology Bull 3X Shares (TECL) and Invesco QQQ (QQQ).
TECL and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. TECL 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. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999. Both TECL and QQQ 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: TECL or QQQ.
Performance
TECL vs. QQQ - Performance Comparison
Returns By Period
In the year-to-date period, TECL achieves a 40.69% return, which is significantly higher than QQQ's 24.04% return. Over the past 10 years, TECL has outperformed QQQ with an annualized return of 38.94%, while QQQ has yielded a comparatively lower 18.03% annualized return.
TECL
40.69%
4.53%
10.17%
57.43%
36.24%
38.94%
QQQ
24.04%
3.57%
10.78%
30.56%
20.99%
18.03%
Key characteristics
| TECL | QQQ | |
|---|---|---|
| Sharpe Ratio | 0.89 | 1.76 |
| Sortino Ratio | 1.45 | 2.35 |
| Omega Ratio | 1.19 | 1.32 |
| Calmar Ratio | 1.27 | 2.25 |
| Martin Ratio | 3.44 | 8.18 |
| Ulcer Index | 16.67% | 3.74% |
| Daily Std Dev | 64.28% | 17.36% |
| Max Drawdown | -77.96% | -82.98% |
| Current Drawdown | -16.49% | -1.62% |
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TECL vs. QQQ - Expense Ratio Comparison
TECL has a 1.08% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Correlation
The correlation between TECL and QQQ is 0.96, 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.
Risk-Adjusted Performance
TECL vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Technology Bull 3X Shares (TECL) and Invesco QQQ (QQQ). 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
TECL vs. QQQ - Dividend Comparison
TECL's dividend yield for the trailing twelve months is around 0.30%, less than QQQ's 0.60% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TECL Direxion Daily Technology Bull 3X Shares | 0.30% | 0.28% | 0.22% | 0.32% | 0.52% | 0.25% | 0.47% | 0.10% | 0.00% | 0.00% | 0.00% | 0.00% |
QQQ Invesco QQQ | 0.60% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.02% |
Drawdowns
TECL vs. QQQ - Drawdown Comparison
The maximum TECL drawdown since its inception was -77.96%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for TECL and QQQ. For additional features, visit the drawdowns tool.
Volatility
TECL vs. QQQ - Volatility Comparison
Direxion Daily Technology Bull 3X Shares (TECL) has a higher volatility of 18.78% compared to Invesco QQQ (QQQ) at 5.36%. This indicates that TECL's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.