TECS vs. TQQQ
Compare and contrast key facts about Direxion Daily Technology Bear 3X Shares (TECS) and ProShares UltraPro QQQ (TQQQ).
TECS and TQQQ 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. 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 TECS 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: TECS or TQQQ.
Key characteristics
| TECS | TQQQ | |
|---|---|---|
| YTD Return | -53.19% | 64.96% |
| 1Y Return | -64.67% | 119.79% |
| 3Y Return (Ann) | -47.73% | 0.92% |
| 5Y Return (Ann) | -64.76% | 36.02% |
| 10Y Return (Ann) | -57.39% | 36.15% |
| Sharpe Ratio | -0.99 | 2.20 |
| Sortino Ratio | -1.76 | 2.54 |
| Omega Ratio | 0.81 | 1.34 |
| Calmar Ratio | -0.64 | 2.04 |
| Martin Ratio | -1.46 | 9.24 |
| Ulcer Index | 44.11% | 12.40% |
| Daily Std Dev | 64.79% | 52.07% |
| Max Drawdown | -100.00% | -81.66% |
| Current Drawdown | -100.00% | -3.47% |
Correlation
The correlation between TECS and TQQQ is -0.87. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.
Performance
TECS vs. TQQQ - Performance Comparison
In the year-to-date period, TECS achieves a -53.19% return, which is significantly lower than TQQQ's 64.96% return. Over the past 10 years, TECS has underperformed TQQQ with an annualized return of -57.39%, while TQQQ has yielded a comparatively higher 36.15% 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. TQQQ - Expense Ratio Comparison
TECS has a 1.08% expense ratio, which is higher than TQQQ's 0.95% expense ratio.
Risk-Adjusted Performance
TECS vs. TQQQ - 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 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
TECS vs. TQQQ - Dividend Comparison
TECS's dividend yield for the trailing twelve months is around 4.84%, more than TQQQ's 1.15% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
TECS Direxion Daily Technology Bear 3X Shares | 4.84% | 5.73% | 0.00% | 0.00% | 0.15% | 1.35% | 0.33% | 0.00% | 0.00% | 0.00% | 0.00% |
TQQQ ProShares UltraPro QQQ | 1.15% | 1.26% | 0.57% | 0.00% | 0.00% | 0.06% | 0.11% | 0.00% | 0.00% | 0.01% | 0.03% |
Drawdowns
TECS vs. TQQQ - Drawdown Comparison
The maximum TECS drawdown since its inception was -100.00%, which is greater than TQQQ's maximum drawdown of -81.66%. Use the drawdown chart below to compare losses from any high point for TECS and TQQQ. For additional features, visit the drawdowns tool.
Volatility
TECS vs. TQQQ - Volatility Comparison
Direxion Daily Technology Bear 3X Shares (TECS) has a higher volatility of 18.24% compared to ProShares UltraPro QQQ (TQQQ) at 15.47%. This indicates that TECS'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.