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 -61.87%/yr vs 24.88%/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
Loading charts...
Returns By Period
In the year-to-date period, TECS achieves a -61.54% return, which is significantly lower than XLK's 29.35% return. Over the past 10 years, TECS has underperformed XLK with an annualized return of -61.87%, while XLK has yielded a comparatively higher 24.88% annualized return.
TECS
- 1D
- -0.76%
- 1M
- -6.32%
- 6M
- -59.85%
- YTD
- -61.54%
- 1Y
- -73.90%
- 3Y*
- -62.75%
- 5Y*
- -56.36%
- 10Y*
- -61.87%
XLK
- 1D
- 0.23%
- 1M
- 0.65%
- 6M
- 27.43%
- YTD
- 29.35%
- 1Y
- 45.99%
- 3Y*
- 30.12%
- 5Y*
- 20.60%
- 10Y*
- 24.88%
TECS vs. XLK - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TECS Direxion Daily Technology Bear 3X Shares | -61.54% | -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 | 29.35% | 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 30, 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.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
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.
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 | XLK | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.89 | ||
| Sortino ratioReturn per unit of downside risk | -4.44 | ||
| Omega ratioGain probability vs. loss probability | 0.79 | 1.32 | -0.53 |
| Calmar ratioReturn relative to maximum drawdown | -0.96 | 2.86 | -3.82 |
| Martin ratioReturn relative to average drawdown | -1.84 | 8.70 | -10.54 |
Loading charts...
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.
Loading charts...
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 | -76.47% | -15.92% | -60.55% |
Max Drawdown (3Y)Largest decline over 3 years | -96.22% | -25.66% | -70.56% |
Max Drawdown (5Y)Largest decline over 5 years | -98.82% | -33.56% | -65.26% |
Max Drawdown (10Y)Largest decline over 10 years | -99.99% | -33.56% | -66.43% |
Current DrawdownCurrent decline from peak | -100.00% | -6.16% | -93.84% |
Average DrawdownAverage peak-to-trough decline | -96.77% | -34.85% | -61.92% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 39.90% | 5.23% | +34.67% |
Volatility
TECS vs. XLK - Volatility Comparison
Direxion Daily Technology Bear 3X Shares (TECS) has a higher volatility of 33.33% compared to State Street Technology Select Sector SPDR ETF (XLK) at 10.98%. 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.
Loading charts...
Volatility by Period
| TECS | XLK | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 33.33% | 10.98% | +22.35% |
Volatility (6M)Calculated over the trailing 6-month period | 61.97% | 20.68% | +41.29% |
Volatility (1Y)Calculated over the trailing 1-year period | 72.78% | 24.26% | +48.52% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 76.16% | 25.52% | +50.64% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 73.04% | 24.77% | +48.27% |
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 8.42%, more than XLK's 0.43% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TECS Direxion Daily Technology Bear 3X Shares | 8.42% | 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 | 0.43% | 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 (33.33%) compared to XLK (10.98%). In terms of maximum drawdown, TECS dropped -100.00% vs XLK's -82.05%.
On 10-year performance, XLK leads with 24.88% vs -61.87% for TECS. On fees, XLK is cheaper at 0.08% per year. On volatility, XLK has been the lower-risk option at 10.98%. 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 24.88% return vs -61.87%. 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 8.42%, compared with 0.43% 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 (1.88 vs -1.01), 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.
Find the right allocation for TECS and XLK
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer