TECL vs. QQQ

Last updated Aug 2, 2026

TECL (Direxion Daily Technology Bull 3X Shares) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - TECL is a Leveraged Equities fund tracking the Technology Select Sector Index (300%), while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, TECL returned 45.88%/yr vs 20.44%/yr for QQQ. Their 0.96 correlation means they have historically moved very closely together. TECL charges 0.91%/yr vs 0.18%/yr for QQQ.

Performance

TECL vs. QQQ - Performance Comparison

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

Returns By Period

In the year-to-date period, TECL achieves a 48.00% return, which is significantly higher than QQQ's 12.26% return. Over the past 10 years, TECL has outperformed QQQ with an annualized return of 45.88%, while QQQ has yielded a comparatively lower 20.44% annualized return.

TECL

• 1D: -0.52%
• 1M: -11.12%
• 6M: 50.64%
• YTD: 48.00%
• 1Y: 91.25%
• 3Y*: 47.81%
• 5Y*: 24.87%
• 10Y*: 45.88%
• ALL TIME*: 46.64%

QQQ

• 1D: 0.65%
• 1M: -3.45%
• 6M: 10.89%
• YTD: 12.26%
• 1Y: 24.81%
• 3Y*: 22.29%
• 5Y*: 14.23%
• 10Y*: 20.44%
• ALL TIME*: 10.64%

*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)
QQQ Invesco QQQ ETF	$30.32B	$28.40B	$31.45B
TECL Direxion Daily Technology Bull 3X Shares	$140.43M	$155.29M	$226.00M

TECL vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TECL Direxion Daily Technology Bull 3X Shares	48.00%	38.60%	36.15%	203.14%	-74.32%	112.80%	69.46%	185.58%	-24.03%	124.82%
QQQ Invesco QQQ ETF	12.26%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between TECL and QQQ is 0.94, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.94
Correlation (3Y) Balances recent behavior with more history.	0.95
Correlation (5Y) Shows whether the relationship held over a longer period.	0.96
Correlation (10Y) Provides a long-term view across more market conditions.	0.96
Correlation (All Time) Calculated using the full available price history since Dec 30, 2008	0.96

The correlation between TECL and QQQ has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

TECL vs. QQQ - Sectors Allocation Comparison

Sectors	TECL	QQQ
Technology	99.2%	60.9%
Communication Services	0.8%	13.1%
Energy	0.0%	0.5%
Industrials	0.0%	2.7%
Basic Materials	-	1.0%
Consumer Cyclical	-	10.7%
Consumer Defensive	-	6.3%
Financial Services	-	0.2%
Healthcare	-	3.6%
Real Estate	-	0.1%
Utilities	-	1.1%

Return for Risk

TECL vs. QQQ — Risk / Return Rank

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

TECL

TECL Risk / Return Rank: 44
TECL Sharpe Ratio Rank: 42
TECL Sortino Ratio Rank: 46
TECL Omega Ratio Rank: 45
TECL Calmar Ratio Rank: 48
TECL Martin Ratio Rank: 39

QQQ

QQQ Risk / Return Rank: 49
QQQ Sharpe Ratio Rank: 47
QQQ Sortino Ratio Rank: 46
QQQ Omega Ratio Rank: 45
QQQ Calmar Ratio Rank: 53
QQQ Martin Ratio Rank: 52

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. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Technology Bull 3X Shares (TECL) and Invesco QQQ ETF (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.

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	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	1.05	1.16	-0.11
Sortino ratio: Return per unit of downside risk	1.66	1.65	+0.01
Omega ratio: Gain probability vs. loss probability	1.21	1.21	0.00
Calmar ratio: Return relative to maximum drawdown	1.71	1.88	-0.17
Martin ratio: Return relative to average drawdown	4.07	6.00	-1.93

TECL vs. QQQ - Sharpe Ratio Comparison

The current TECL Sharpe Ratio is 1.05, which is comparable to the QQQ Sharpe Ratio of 1.16. The chart below compares the historical Sharpe Ratios of TECL and QQQ, 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. QQQ - Drawdown Comparison

The maximum TECL drawdown since its inception was -77.96%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for TECL and QQQ.

Drawdown Indicators

	TECL	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-77.96%	-82.97%	+5.01%
Max Drawdown (1Y) Largest decline over 1 year	-46.58%	-11.96%	-34.62%
Max Drawdown (3Y) Largest decline over 3 years	-66.58%	-22.77%	-43.81%
Max Drawdown (5Y) Largest decline over 5 years	-77.96%	-35.12%	-42.84%
Max Drawdown (10Y) Largest decline over 10 years	-77.96%	-35.12%	-42.84%
Current Drawdown Current decline from peak	-36.44%	-7.69%	-28.75%
Average Drawdown Average peak-to-trough decline	-18.45%	-32.62%	+14.17%
Ulcer Index Depth and duration of drawdowns from previous peaks	19.52%	3.74%	+15.78%

Volatility

TECL vs. QQQ - Volatility Comparison

Direxion Daily Technology Bull 3X Shares (TECL) has a higher volatility of 28.17% compared to Invesco QQQ ETF (QQQ) at 6.87%. 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.

Volatility by Period

	TECL	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	28.17%	6.87%	+21.30%
Volatility (6M) Calculated over the trailing 6-month period	65.35%	16.08%	+49.27%
Volatility (1Y) Calculated over the trailing 1-year period	76.26%	19.38%	+56.88%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	76.62%	22.90%	+53.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	73.57%	22.50%	+51.07%

TECL vs. QQQ - Expense Ratio Comparison

TECL has a 0.91% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

TECL vs. QQQ - Dividend Comparison

TECL's dividend yield for the trailing twelve months is around 4.81%, more than QQQ's 0.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QQQ Invesco QQQ ETF	0.44%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%
TECL Direxion Daily Technology Bull 3X Shares	4.81%	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 QQQ in my portfolio?

With a correlation of 0.94, TECL and QQQ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, TECL or QQQ?

TECL has higher volatility (28.17%) compared to QQQ (6.87%). In terms of maximum drawdown, TECL dropped -77.96% vs QQQ's -82.97%.

Which ETF is better, TECL or QQQ?

On 10-year performance, TECL leads with 45.88% vs 20.44% for QQQ. On fees, QQQ is cheaper at 0.18% per year. On volatility, QQQ has been the lower-risk option at 6.87%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TECL or QQQ?

Over the 10-year period, TECL has performed better with a 45.88% return vs 20.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TECL or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.91% for TECL.

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

TECL has the higher dividend yield at 4.81%, compared with 0.44% for QQQ.

What is the main difference between TECL and QQQ?

TECL is categorized as Leveraged Equities, while QQQ is Nasdaq-100. TECL tracks Technology Select Sector Index (300%), while QQQ tracks NASDAQ-100 Index. They also come from different issuers: Direxion and Invesco. Their fees differ too: 0.91% for TECL and 0.18% for QQQ.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (1.16 vs 1.05), 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.