TMF vs. TQQQ
Compare and contrast key facts about Direxion Daily 20-Year Treasury Bull 3X (TMF) and ProShares UltraPro QQQ (TQQQ).
TMF and TQQQ 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. 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 TMF 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: TMF or TQQQ.
Key characteristics
| TMF | TQQQ | |
|---|---|---|
| YTD Return | -27.25% | 12.24% |
| 1Y Return | -44.08% | 116.47% |
| 3Y Return (Ann) | -41.22% | 5.07% |
| 5Y Return (Ann) | -24.66% | 28.09% |
| 10Y Return (Ann) | -10.27% | 37.34% |
| Sharpe Ratio | -0.93 | 2.34 |
| Daily Std Dev | 48.87% | 48.84% |
| Max Drawdown | -92.18% | -81.66% |
| Current Drawdown | -90.48% | -34.32% |
Correlation
The correlation between TMF and TQQQ is -0.22. 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
TMF vs. TQQQ - Performance Comparison
In the year-to-date period, TMF achieves a -27.25% return, which is significantly lower than TQQQ's 12.24% return. Over the past 10 years, TMF has underperformed TQQQ with an annualized return of -10.27%, while TQQQ has yielded a comparatively higher 37.34% 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. TQQQ - Expense Ratio Comparison
TMF has a 1.09% expense ratio, which is higher than TQQQ's 0.95% expense ratio.
Risk-Adjusted Performance
TMF vs. TQQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily 20-Year Treasury Bull 3X (TMF) 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
TMF vs. TQQQ - Dividend Comparison
TMF's dividend yield for the trailing twelve months is around 3.84%, more than TQQQ's 1.24% 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% |
TQQQ ProShares UltraPro QQQ | 1.24% | 1.26% | 0.57% | 0.00% | 0.00% | 0.06% | 0.11% | 0.00% | 0.00% | 0.01% | 0.03% | 0.00% |
Drawdowns
TMF vs. TQQQ - Drawdown Comparison
The maximum TMF drawdown since its inception was -92.18%, which is greater than TQQQ's maximum drawdown of -81.66%. Use the drawdown chart below to compare losses from any high point for TMF and TQQQ. For additional features, visit the drawdowns tool.
Volatility
TMF vs. TQQQ - Volatility Comparison
The current volatility for Direxion Daily 20-Year Treasury Bull 3X (TMF) is 12.54%, while ProShares UltraPro QQQ (TQQQ) has a volatility of 17.43%. This indicates that TMF experiences smaller price fluctuations and is considered to be less risky than TQQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.