TECS vs. XLK
TECS (Direxion Daily Technology Bear 3X Shares) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - TECS is a Leveraged Equities fund tracking the Technology Select Sector Index (-300%), while XLK is a Technology Equities fund tracking the S&P Technology Select Sector Daily Capped 35/20 Index. Both are passively managed. Over the past 10 years, TECS returned -62.30%/yr vs 25.62%/yr for XLK. At a correlation of -0.99, they often move in opposite directions. TECS charges 1.08%/yr vs 0.08%/yr for XLK.
Performance
TECS vs. XLK - Performance Comparison
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Returns By Period
In the year-to-date period, TECS achieves a -62.68% return, which is significantly lower than XLK's 34.34% return. Over the past 10 years, TECS has underperformed XLK with an annualized return of -62.30%, while XLK has yielded a comparatively higher 25.62% annualized return.
TECS
- 1D
- 4.57%
- 1M
- -38.78%
- YTD
- -62.68%
- 6M
- -61.81%
- 1Y
- -79.89%
- 3Y*
- -64.46%
- 5Y*
- -58.69%
- 10Y*
- -62.30%
XLK
- 1D
- -1.56%
- 1M
- 16.63%
- YTD
- 34.34%
- 6M
- 33.10%
- 1Y
- 64.08%
- 3Y*
- 33.46%
- 5Y*
- 23.44%
- 10Y*
- 25.62%
TECS vs. XLK - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TECS Direxion Daily Technology Bear 3X Shares | -62.68% | -62.44% | -49.76% | -74.45% | 45.05% | -67.92% | -87.79% | -73.77% | -19.14% | -60.81% |
XLK State Street Technology Select Sector SPDR ETF | 34.34% | 24.61% | 21.63% | 56.02% | -27.73% | 34.74% | 43.62% | 49.86% | -1.68% | 34.26% |
Correlation
The correlation between TECS and XLK is -1.00, 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 | -1.00 |
Correlation (3Y) Calculated over the trailing 3-year period | -1.00 |
Correlation (5Y) Calculated over the trailing 5-year period | -1.00 |
Correlation (10Y) Calculated over the trailing 10-year period | -1.00 |
Correlation (All Time) Calculated using the full available price history since Dec 31, 2008 | -0.99 |
The correlation between TECS and XLK has been stable across timeframes, ranging from -1.00 to -0.99 - a consistent structural relationship.
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Return for Risk
TECS vs. XLK — Risk / Return Rank
TECS
XLK
TECS vs. XLK - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Technology Bear 3X Shares (TECS) and State Street Technology Select Sector SPDR ETF (XLK). 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.
| TECS | XLK | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -4.37 | ||
| Sortino ratioReturn per unit of downside risk | -6.75 | ||
| Omega ratioGain probability vs. loss probability | 0.69 | 1.49 | -0.80 |
| Calmar ratioReturn relative to maximum drawdown | -0.98 | 4.04 | -5.03 |
| Martin ratioReturn relative to average drawdown | -1.78 | 13.55 | -15.32 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| TECS | XLK | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -1.28 | 3.09 | -4.37 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.79 | 0.95 | -1.74 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.86 | 1.05 | -1.91 |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.89 | 0.41 | -1.30 |
Drawdowns
TECS vs. XLK - Drawdown Comparison
The maximum TECS drawdown since its inception was -100.00%, which is greater than XLK's maximum drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for TECS and XLK.
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Drawdown Indicators
| TECS | XLK | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -82.05% | -17.95% |
Max Drawdown (1Y)Largest decline over 1 year | -81.50% | -15.92% | -65.58% |
Max Drawdown (3Y)Largest decline over 3 years | -96.22% | -25.66% | -70.56% |
Max Drawdown (5Y)Largest decline over 5 years | -98.88% | -33.56% | -65.32% |
Max Drawdown (10Y)Largest decline over 10 years | -100.00% | -33.56% | -66.44% |
Current DrawdownCurrent decline from peak | -100.00% | -2.54% | -97.46% |
Average DrawdownAverage peak-to-trough decline | -96.76% | -34.95% | -61.81% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 44.95% | 4.74% | +40.21% |
Volatility
TECS vs. XLK - Volatility Comparison
Direxion Daily Technology Bear 3X Shares (TECS) has a higher volatility of 22.21% compared to State Street Technology Select Sector SPDR ETF (XLK) at 7.27%. This indicates that TECS's price experiences larger fluctuations and is considered to be riskier than XLK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TECS | XLK | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 22.21% | 7.27% | +14.94% |
Volatility (6M)Calculated over the trailing 6-month period | 50.75% | 16.76% | +33.99% |
Volatility (1Y)Calculated over the trailing 1-year period | 62.38% | 20.86% | +41.52% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 74.24% | 24.90% | +49.34% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 72.17% | 24.49% | +47.68% |
TECS vs. XLK - Expense Ratio Comparison
TECS has a 1.08% expense ratio, which is higher than XLK's 0.08% expense ratio.
Dividends
TECS vs. XLK - Dividend Comparison
TECS's dividend yield for the trailing twelve months is around 10.43%, more than XLK's 0.40% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TECS Direxion Daily Technology Bear 3X Shares | 10.43% | 5.83% | 5.24% | 7.52% | 0.00% | 0.00% | 1.50% | 2.40% | 0.72% | 0.00% | 0.00% | 0.00% |
XLK State Street Technology Select Sector SPDR ETF | 0.40% | 0.54% | 0.66% | 0.76% | 1.04% | 0.65% | 0.92% | 1.16% | 1.60% | 1.37% | 1.74% | 1.79% |
Frequently Asked Questions
TECS and XLK have a correlation of -1.00, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TECS has higher volatility (22.21%) compared to XLK (7.27%). In terms of maximum drawdown, TECS dropped -100.00% vs XLK's -82.05%.
On 10-year performance, XLK leads with 25.62% vs -62.30% for TECS. On fees, XLK is cheaper at 0.08% per year. On volatility, XLK has been the lower-risk option at 7.27%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLK has performed better with a 25.62% return vs -62.30%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLK is cheaper with a 0.08% expense ratio, compared with 1.08% for TECS.
TECS has the higher dividend yield at 10.43%, compared with 0.40% for XLK.
TECS is categorized as Leveraged Equities, while XLK is Technology Equities. TECS tracks Technology Select Sector Index (-300%), while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. They also come from different issuers: Direxion and State Street. Their fees differ too: 1.08% for TECS and 0.08% for XLK.
XLK currently has the higher Sharpe Ratio (3.09 vs -1.28), 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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