TMF vs. TLT
Compare and contrast key facts about Direxion Daily 20-Year Treasury Bull 3X (TMF) and iShares 20+ Year Treasury Bond ETF (TLT).
TMF and TLT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. TMF is a passively managed fund by Direxion that tracks the performance of the NYSE 20 Year Plus Treasury Bond Index (300%). It was launched on Apr 16, 2009. TLT is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 20+ Year Treasury Bond Index. It was launched on Jul 26, 2002. Both TMF and TLT 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: TMF or TLT.
Key characteristics
| TMF | TLT | |
|---|---|---|
| YTD Return | -27.25% | -7.93% |
| 1Y Return | -44.08% | -11.39% |
| 3Y Return (Ann) | -41.22% | -11.29% |
| 5Y Return (Ann) | -24.66% | -4.01% |
| 10Y Return (Ann) | -10.27% | 0.20% |
| Sharpe Ratio | -0.93 | -0.73 |
| Daily Std Dev | 48.87% | 16.71% |
| Max Drawdown | -92.18% | -48.35% |
| Current Drawdown | -90.48% | -42.63% |
Correlation
The correlation between TMF and TLT is 1.00, 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
TMF vs. TLT - Performance Comparison
In the year-to-date period, TMF achieves a -27.25% return, which is significantly lower than TLT's -7.93% return. Over the past 10 years, TMF has underperformed TLT with an annualized return of -10.27%, while TLT has yielded a comparatively higher 0.20% 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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TMF vs. TLT - Expense Ratio Comparison
TMF has a 1.09% expense ratio, which is higher than TLT's 0.15% expense ratio.
Risk-Adjusted Performance
TMF vs. TLT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily 20-Year Treasury Bull 3X (TMF) and iShares 20+ Year Treasury Bond ETF (TLT). 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
TMF vs. TLT - Dividend Comparison
TMF's dividend yield for the trailing twelve months is around 3.84%, less than TLT's 3.90% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TMF Direxion Daily 20-Year Treasury Bull 3X | 3.84% | 2.82% | 1.62% | 0.13% | 0.48% | 0.94% | 1.49% | 0.41% | 0.00% | 0.00% | 0.00% | 0.57% |
TLT iShares 20+ Year Treasury Bond ETF | 3.90% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% | 2.67% | 3.26% |
Drawdowns
TMF vs. TLT - Drawdown Comparison
The maximum TMF drawdown since its inception was -92.18%, which is greater than TLT's maximum drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for TMF and TLT. For additional features, visit the drawdowns tool.
Volatility
TMF vs. TLT - Volatility Comparison
Direxion Daily 20-Year Treasury Bull 3X (TMF) has a higher volatility of 12.54% compared to iShares 20+ Year Treasury Bond ETF (TLT) at 4.20%. This indicates that TMF's price experiences larger fluctuations and is considered to be riskier than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.