TECS vs. IYW
TECS (Direxion Daily Technology Bear 3X Shares) and IYW (iShares U.S. Technology ETF) are both exchange-traded funds - TECS is a Leveraged Equities fund tracking the Technology Select Sector Index (-300%), while IYW is a Technology Equities fund tracking the Russell 1000 Technology RIC 22.5/45 Capped Index. Both are passively managed. Over the past 10 years, TECS returned -61.11%/yr vs 24.81%/yr for IYW. At a correlation of -0.98, they often move in opposite directions. TECS charges 1.08%/yr vs 0.38%/yr for IYW.
Performance
TECS vs. IYW - Performance Comparison
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Returns By Period
In the year-to-date period, TECS achieves a -54.72% return, which is significantly lower than IYW's 19.89% return. Over the past 10 years, TECS has underperformed IYW with an annualized return of -61.11%, while IYW has yielded a comparatively higher 24.81% annualized return.
TECS
- 1D
- 3.30%
- 1M
- 13.51%
- 6M
- -53.35%
- YTD
- -54.72%
- 1Y
- -67.34%
- 3Y*
- -58.77%
- 5Y*
- -55.06%
- 10Y*
- -61.11%
IYW
- 1D
- -1.43%
- 1M
- -2.90%
- 6M
- 19.76%
- YTD
- 19.89%
- 1Y
- 34.05%
- 3Y*
- 28.51%
- 5Y*
- 19.43%
- 10Y*
- 24.81%
TECS vs. IYW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TECS Direxion Daily Technology Bear 3X Shares | -54.72% | -62.44% | -49.76% | -74.45% | 45.05% | -67.92% | -87.79% | -73.77% | -19.14% | -60.81% |
IYW iShares U.S. Technology ETF | 19.89% | 25.38% | 30.25% | 65.44% | -34.83% | 35.44% | 47.45% | 46.64% | -0.93% | 36.60% |
Correlation
The correlation between TECS and IYW is -0.98, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.98 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.98 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.98 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.98 |
Correlation (All Time) Calculated using the full available price history since Dec 30, 2008 | -0.98 |
The correlation between TECS and IYW has been stable across timeframes, ranging from -0.98 to -0.98 - a consistent structural relationship.
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Return for Risk
TECS vs. IYW — Risk / Return Rank
TECS
IYW
TECS vs. IYW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Technology Bear 3X Shares (TECS) and iShares U.S. Technology ETF (IYW). 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.
| TECS | IYW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.40 | ||
| Sortino ratioReturn per unit of downside risk | -3.63 | ||
| Omega ratioGain probability vs. loss probability | 0.83 | 1.26 | -0.43 |
| Calmar ratioReturn relative to maximum drawdown | -0.89 | 1.92 | -2.81 |
| Martin ratioReturn relative to average drawdown | -1.66 | 5.92 | -7.58 |
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Drawdowns
TECS vs. IYW - Drawdown Comparison
The maximum TECS drawdown since its inception was -100.00%, which is greater than IYW's maximum drawdown of -81.90%. Use the drawdown chart below to compare losses from any high point for TECS and IYW.
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Drawdown Indicators
| TECS | IYW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -81.90% | -18.10% |
Max Drawdown (1Y)Largest decline over 1 year | -76.16% | -17.81% | -58.35% |
Max Drawdown (3Y)Largest decline over 3 years | -96.22% | -26.47% | -69.75% |
Max Drawdown (5Y)Largest decline over 5 years | -98.82% | -39.44% | -59.38% |
Max Drawdown (10Y)Largest decline over 10 years | -99.99% | -39.44% | -60.55% |
Current DrawdownCurrent decline from peak | -100.00% | -7.94% | -92.06% |
Average DrawdownAverage peak-to-trough decline | -96.77% | -34.52% | -62.25% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 40.54% | 5.76% | +34.78% |
Volatility
TECS vs. IYW - Volatility Comparison
Direxion Daily Technology Bear 3X Shares (TECS) has a higher volatility of 28.57% compared to iShares U.S. Technology ETF (IYW) at 8.61%. This indicates that TECS's price experiences larger fluctuations and is considered to be riskier than IYW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TECS | IYW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 28.57% | 8.61% | +19.96% |
Volatility (6M)Calculated over the trailing 6-month period | 62.74% | 19.42% | +43.32% |
Volatility (1Y)Calculated over the trailing 1-year period | 73.73% | 23.14% | +50.59% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 76.32% | 26.37% | +49.95% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 73.13% | 25.30% | +47.83% |
TECS vs. IYW - Expense Ratio Comparison
TECS has a 1.08% expense ratio, which is higher than IYW's 0.38% expense ratio.
Dividends
TECS vs. IYW - Dividend Comparison
TECS's dividend yield for the trailing twelve months is around 7.16%, more than IYW's 0.11% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYW iShares U.S. Technology ETF | 0.11% | 0.14% | 0.21% | 0.34% | 0.50% | 0.31% | 0.56% | 0.72% | 0.92% | 0.82% | 1.14% | 1.12% |
TECS Direxion Daily Technology Bear 3X Shares | 7.16% | 5.83% | 5.24% | 7.52% | 0.00% | 0.00% | 1.50% | 2.40% | 0.72% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
TECS and IYW have a correlation of -0.98, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TECS has higher volatility (28.57%) compared to IYW (8.61%). In terms of maximum drawdown, TECS dropped -100.00% vs IYW's -81.90%.
On 10-year performance, IYW leads with 24.81% vs -61.11% for TECS. On fees, IYW is cheaper at 0.38% per year. On volatility, IYW has been the lower-risk option at 8.61%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IYW has performed better with a 24.81% return vs -61.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IYW is cheaper with a 0.38% expense ratio, compared with 1.08% for TECS.
TECS has the higher dividend yield at 7.16%, compared with 0.11% for IYW.
TECS is categorized as Leveraged Equities, while IYW is Technology Equities. TECS tracks Technology Select Sector Index (-300%), while IYW tracks Russell 1000 Technology RIC 22.5/45 Capped Index. They also come from different issuers: Direxion and iShares. Their fees differ too: 1.08% for TECS and 0.38% for IYW.
IYW currently has the higher Sharpe Ratio (1.48 vs -0.92), 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.
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