TECS vs. SQQQ
Compare and contrast key facts about Direxion Daily Technology Bear 3X Shares (TECS) and ProShares UltraPro Short QQQ (SQQQ).
TECS and SQQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. TECS 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. SQQQ 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 TECS and SQQQ 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: TECS or SQQQ.
Key characteristics
| TECS | SQQQ | |
|---|---|---|
| YTD Return | -53.19% | -51.13% |
| 1Y Return | -64.67% | -63.74% |
| 3Y Return (Ann) | -47.73% | -39.63% |
| 5Y Return (Ann) | -64.76% | -59.83% |
| 10Y Return (Ann) | -57.39% | -52.65% |
| Sharpe Ratio | -0.99 | -1.20 |
| Sortino Ratio | -1.76 | -2.21 |
| Omega Ratio | 0.81 | 0.76 |
| Calmar Ratio | -0.64 | -0.63 |
| Martin Ratio | -1.46 | -1.44 |
| Ulcer Index | 44.11% | 43.59% |
| Daily Std Dev | 64.79% | 52.39% |
| Max Drawdown | -100.00% | -100.00% |
| Current Drawdown | -100.00% | -100.00% |
Correlation
The correlation between TECS and SQQQ is 0.89, 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.
Performance
TECS vs. SQQQ - Performance Comparison
The year-to-date returns for both investments are quite close, with TECS having a -53.19% return and SQQQ slightly higher at -51.13%. Over the past 10 years, TECS has underperformed SQQQ with an annualized return of -57.39%, while SQQQ has yielded a comparatively higher -52.65% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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TECS vs. SQQQ - Expense Ratio Comparison
TECS has a 1.08% expense ratio, which is higher than SQQQ's 0.95% expense ratio.
Risk-Adjusted Performance
TECS vs. SQQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Technology Bear 3X Shares (TECS) and ProShares UltraPro Short QQQ (SQQQ). 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
TECS vs. SQQQ - Dividend Comparison
TECS's dividend yield for the trailing twelve months is around 4.84%, less than SQQQ's 10.07% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|
TECS Direxion Daily Technology Bear 3X Shares | 4.84% | 5.73% | 0.00% | 0.00% | 0.15% | 1.35% | 0.33% | 0.00% |
SQQQ ProShares UltraPro Short QQQ | 10.07% | 8.01% | 0.06% | 0.00% | 2.15% | 2.92% | 1.47% | 0.14% |
Drawdowns
TECS vs. SQQQ - Drawdown Comparison
The maximum TECS drawdown since its inception was -100.00%, roughly equal to the maximum SQQQ drawdown of -100.00%. Use the drawdown chart below to compare losses from any high point for TECS and SQQQ. For additional features, visit the drawdowns tool.
Volatility
TECS vs. SQQQ - Volatility Comparison
Direxion Daily Technology Bear 3X Shares (TECS) has a higher volatility of 18.24% compared to ProShares UltraPro Short QQQ (SQQQ) at 15.52%. This indicates that TECS's price experiences larger fluctuations and is considered to be riskier than SQQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.