TECL vs. TQQQ
Compare and contrast key facts about Direxion Daily Technology Bull 3X Shares (TECL) and ProShares UltraPro QQQ (TQQQ).
TECL and TQQQ 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. TQQQ is a passively managed fund by ProShares that tracks the performance of the NASDAQ-100 Index (300%). It was launched on Feb 9, 2010. Both TECL and TQQQ 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 TQQQ.
Performance
TECL vs. TQQQ - Performance Comparison
Returns By Period
In the year-to-date period, TECL achieves a 36.39% return, which is significantly lower than TQQQ's 53.90% return. Over the past 10 years, TECL has outperformed TQQQ with an annualized return of 38.77%, while TQQQ has yielded a comparatively lower 34.56% annualized return.
TECL
36.39%
-3.29%
6.55%
54.59%
35.46%
38.77%
TQQQ
53.90%
2.86%
20.48%
78.56%
34.01%
34.56%
Key characteristics
| TECL | TQQQ | |
|---|---|---|
| Sharpe Ratio | 0.79 | 1.45 |
| Sortino Ratio | 1.35 | 1.93 |
| Omega Ratio | 1.18 | 1.26 |
| Calmar Ratio | 1.12 | 1.47 |
| Martin Ratio | 3.05 | 6.04 |
| Ulcer Index | 16.61% | 12.47% |
| Daily Std Dev | 64.28% | 51.83% |
| Max Drawdown | -77.96% | -81.66% |
| Current Drawdown | -19.04% | -9.94% |
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TECL vs. TQQQ - Expense Ratio Comparison
TECL has a 1.08% expense ratio, which is higher than TQQQ's 0.95% expense ratio.
Correlation
The correlation between TECL and TQQQ 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. TQQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Technology Bull 3X Shares (TECL) and ProShares UltraPro QQQ (TQQQ). 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. TQQQ - Dividend Comparison
TECL's dividend yield for the trailing twelve months is around 0.31%, less than TQQQ's 1.23% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
TECL Direxion Daily Technology Bull 3X Shares | 0.31% | 0.28% | 0.22% | 0.32% | 0.52% | 0.25% | 0.47% | 0.10% | 0.00% | 0.00% | 0.00% |
TQQQ ProShares UltraPro QQQ | 1.23% | 1.26% | 0.57% | 0.00% | 0.00% | 0.06% | 0.11% | 0.00% | 0.00% | 0.01% | 0.03% |
Drawdowns
TECL vs. TQQQ - Drawdown Comparison
The maximum TECL drawdown since its inception was -77.96%, roughly equal to the maximum TQQQ drawdown of -81.66%. Use the drawdown chart below to compare losses from any high point for TECL and TQQQ. For additional features, visit the drawdowns tool.
Volatility
TECL vs. TQQQ - Volatility Comparison
Direxion Daily Technology Bull 3X Shares (TECL) has a higher volatility of 19.07% compared to ProShares UltraPro QQQ (TQQQ) at 17.03%. This indicates that TECL's price experiences larger fluctuations and is considered to be riskier than TQQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.